Episode
22

ESG Basics with ESG Global Advisors CEO Sarah Keyes

November 17, 2021
|
Duration:
2010012
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In This Episode:

Join energy coaches David Arkell, John Pooley, and Sarah Keyes, CPA, CA, and CEO at ESG Global Advisors Inc for an episode about the basics of ESG. This episode features what ESG is and how it originated, the relationship between ESG and TCFD, measuring the effectiveness of ESG at a company, and more.

Highlights

  • Evolution of ESG from CSR: ESG has developed from traditional Corporate Social Responsibility (CSR) by focusing on financially material environmental and social issues that impact a company’s performance and value. Its rise is driven by increased investor interest in sustainability-related financial risks.
  • Materiality Assessments: ESG materiality assessments identify key sustainability issues relevant to stakeholders. Unlike financial materiality, they encompass broader societal impacts, aligning company practices with stakeholder priorities.
  • ESG Reporting Standards: Popular frameworks like the Sustainability Accounting Standards Board (SASB) and Task Force on Climate-related Financial Disclosures (TCFD) provide transparency and consistency in reporting environmental and social risks.
  • ESG Integration in Investment: ESG has become integral to investment strategies. Financial institutions use ESG to manage risks and improve returns, distinguishing between ESG integration, socially responsible investing, and impact investing.
  • Investor Pressure and Talent Attraction: Companies face growing pressure to adopt ESG practices to meet investor expectations and attract sustainability-focused younger talent. High-emission sectors are particularly incentivized to develop comprehensive ESG strategies.
  • Key Insights

  • Balancing Value and Values: ESG focuses on achieving long-term value by integrating sustainable business practices that align economic goals with environmental and social responsibility.
  • Increasing Accountability through Governance: Robust governance structures ensure ESG considerations are embedded into strategy, risk management, and performance oversight, promoting a comprehensive approach to sustainability.
  • ESG as a Financial Driver: ESG integration can drive financial benefits, including reduced risks, lower capital costs, and improved operational efficiencies, making it attractive to both private and public companies.
  • Dynamic and Evolving Standards: ESG expectations are continually evolving, with new frameworks and regulations emerging to enhance clarity and accountability. Companies must remain flexible to adapt to these changes and meet investor demands.
  • The Role of ESG in Talent Management: Strong ESG propositions attract and retain younger, values-driven talent, giving companies a competitive edge in recruitment and workforce engagement.
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