There’s been a lot of chatter – and confusion – around environmental, social, and governance (ESG) over the past few years.
From the emergence of the “anti-ESG” movement, to the world’s largest asset manager, BlackRock Inc., recently reducing the number of new funds with ESG mandates, the three letters have caused quite a lot of turmoil.
Essentially, ESG helps assess the overall sustainability and ethical performance of companies. It’s been garnering more attention as investors and other stakeholders consider these factors when making investment decisions.
Global professional services company Deloitte just released the 2024 Sustainability Action Report which surveyed 300 executives at diverse, publicly owned companies with revenue of at least $500-million.
Here’s what they’re thinking about ESG:
Companies are investing in reporting
With the recent lineup of new sustainability reporting mandates and standards, like the U.S. Securities and Exchange Commission’s climate disclosure rule, 99 per cent of companies are preparing for increased disclosure requirements.
Additionally, 74 per cent of companies say they are likely to invest in new technology or tools to help improve their ESG disclosure capabilities.
It’s not just about mandates, though. Companies are also realizing that these investments have benefits internally, with 51 per cent saying the top three advantages are greater efficiencies, lower risk and enhanced trust with stakeholders.
The top expected external benefits were brand reputation, talent attraction and higher pricing abilities.
Cross-functional teams to the front
This work can’t happen without people power, and the study shows companies are building that capacity in the form of cross-functional ESG working groups, and hiring for roles like chief sustainability officer and ESG controller.
But there’s still an issue with data quality
Even though companies are investing in their disclosure capabilities, 57 per cent say that quality is the biggest challenge with ESG data, and 88 per cent report data quality as one of the top three challenges.
Fast fact
The math on early retirement
If you defer taking your Canada Pension Plan (CPP) benefits from age 60 to 65 and have no employment earrings during the period, your CPP will always increase approximately 39 to 56 per cent.
So, there’s a strong case for deferring five or even 10 years.
Career guidance
10 hours to prepare for an interview
Sounds a bit intense, but that’s exactly what career coach Sam Owens advises candidates who are gearing up for interviews. His book, I Hate Job Interviews, outlines the importance of taking so much time and how you should spend each hour.
Quoted
When promises are hard to keep
In one opinion piece, talent and leadership development specialist, Eileen Dooley, pens: “For the longest time, we have been blaming the new generation employee – the entitled ones who don’t want to work as hard as the rest of us but want the rewards. Perhaps, however, companies may be the ones to blame by promising the sun, moon and stars from the beginning.”
On our radar
A ‘gag order’ on going green?
The Competition Bureau is requesting feedback from Canadians on specific questions related to the new corporate greenwashing (misleading environmental claims) provisions of the Competition Act. With legal risk on the line and undefined international standards, some companies are adding disclaimers to their websites as they face uncertainty around communicating about how they are improving their environmental performance.