Climate action, purpose, data and diversity raised at ESG forum
Shareholders are becoming more sophisticated in their expectations of how companies are tackling climate change, delegates heard at the Secretary General’s Hybrid Forum and IR Magazine on ESG Integration – Europe last week.
Dr. Márcia Balisciano, global head of ESG and corporate responsibility at RELX and one of the forum panelists, said conversations with investors had gone from “do you…? to ‘how are you…?’ People are looking to better understand what the companies they own an investment in are actually doing to achieve ESG goals, not just whether those companies are doing it or not.
Corporate Secretary and its sister publication IR magazine brought together investors and issuers, IRs, governance and sustainability professionals under one roof for the first time in London since November 2019 as pandemic-related restrictions eased. A large international audience watched and asked questions online.
Traditionally, this popular forum has focused on meeting shareholder expectations on ESG. Given the increased pressure on companies, investors and regulators to consider all stakeholders in their activities, however, the Secretary General and IR magazine decided to also explore these aspects in the panels and forum sessions.
Delegates heard how increasingly important it is to define and articulate the purpose of the business. It became clear throughout the day that understanding and communicating the purpose is critical, as these issues come up even at general meetings via shareholder questions.
Non-financial information in the business world is almost as valuable as financial information, noted Mark Babington, executive director of regulatory standards at the Financial Reporting Council. He said stakeholder capitalism is not only about long-term value creation, but also about preventing value destruction, and that non-financial information informs investors and companies about these issues.
DATA-BASED DECISIONS
The Intergovernmental Panel on Climate Change, the United Nations body tasked with assessing science related to climate change, signaled in February that urgent action was needed to address rising risks. climatic. Ed Heaven, head of sustainable investing at Montanaro Asset Management, noted on his panel that a climate emergency is happening and pressure is on everyone in society to act faster.
Delegates heard the importance of having the right tools to make data-driven decisions around ESG issues. Keren Pakes, vice president of communications and ESG at Bright Data, pointed out in her study that about two-thirds of companies cite lack of software as their top barrier to data access.
Employees are increasingly important in an ESG conscious environment. As mentioned in IR magazineit’s Stakeholder management report, employee relations is the most reported item in the annual survey, and it was mentioned throughout the forum. The great resignation caused by the pandemic has highlighted the need for business leaders to look after their most valuable assets.
Delegates were urged not to forget their suppliers either. Jono Ekin, Sales Director for ESG at One Trust ESG, mentioned that most of the impact happens in companies’ supply chains, so it was important to consider this in ESG communications.
The recording of the Secretary General and the IR ESG Integration Forum – Europe magazine is ready for viewing. Click here to access the full replay. Book your place at our future events around the world.
