|
Q4 brought an exponential increase of interest and quantifiable content around the business impacts of climate change, sustainability and other Environmental Governance issues.
Wall Street's Findings
We’ve seen several new studies demonstrate the business and financial value of a strategically integrated sustainability program:
| McKinsey & Company |
- More than 90 percent of CEOs are doing more than they did 5 years ago to incorporate environmental, social and governance issues into strategy and operations.
- 72 percent of CEOs corporate responsibility should be embedded fully into strategy and operations.
|
| Goldman Sachs |
- Study showed that among the six sectors covered – energy, mining, steel, food, beverages, and media – companies that are considered leaders in implementing environmental, social and governance (ESG) policies have outperformed the general stock market by 25 percent since August 2005.
- In addition, 72 percent of these companies have outperformed their peers over the same period.
|
Sustainability Indices
We’ve also witnessed the reconstitution of major sustainability indices.
- FTSE4Good Index Series Review - 42 companies added, 24 removed
- Dow Jones Sustainability Indexes Review - 42 new global sustainability leaders
State Pension Plans
Over a dozen of the countries largest public plans are increasing their pursuit of carbon related strategies and pressing the SEC to require better environmental disclosure from public companies. States Include: CA, CT, FL, IL, IA, KY, ME, MD, NJ, NY, NC, OR, PA and VT.
Carbon Disclosure Project
Last but not least is the latest release of the Carbon Disclosure Project, the world’s largest collaboration of shareholders. This collection consists of over 300 institutional investors representing more than $40 TRILLION in investment capital. They are actively and successfully pressing the world’s largest corporations to disclose their carbon emissions.
Whether or not your company is reporting sustainability information, an increasing number of diverse financial players are assessing your sustainability performance.
- Do you know how you are being perceived by the market? Your customers? Your peers? Your current and potential employees?
- Are your peers disclosing environmental information that you should be disclosing?
- Are your existing management systems ready and able to produce relevant sustainability information?
Wallace Partners can help you understand, negotiate and manage the interface between your company, these shareholders and other priority stakeholders. Please contact us for an overview of the market and how your environmental performance is being viewed as a corporate governance indicator.
|
