Governance and Investors
Several factors are now helping investors engage more effectively on ESG issues. Thanks to regulations such as the EU Non-Financial Reporting Directive and disclosure initiatives such as the Task Force on Climate-related Financial Disclosures (TCFD), shareholders have access to more information than before. The five sustainability standard-setters - SASB, IIRC, CDSB, GRI and CDP - have committed to working together to further harmonize this information through more consistent and standardized disclosure and reporting.
At the same time, digital technologies such as Big Data analytics, artificial intelligence, and machine learning are helping investors navigate the ever-increasing stream of data produced by companies. "Artificial intelligence allows investors to gather and analyze an unprecedented amount of information when considering environmental, social, and governance opportunities and risks," says S&P.
Governance is a pillar of corporate strategy. The way management teams implement those strategies is directly related to it. As a result, poor governance can have a significant impact on a company's value.
The contribution of stratESGy is to help verify the coherence between critical material ESG issues, the strategy and its implementation, and to propose a consistent narrative to stakeholders including investors.
This is part of our Coherence Module: www.stratesgy.com/coherence