| |
In This Issue
Editor's Note
Integration for Sustainability
According to a new report, the market for sustainable business opportunities may reach US$4.1 trillion by the year 2050 in the natural resources sector alone.
We believe a key part of ensuring that 2050 vision for sustainable business success involves integration—from environmental strategy to communicating impacts and risks to investors.
In her feature article based on BSR's new report on emerging ecosystem services tools, Linda Hwang points to a growing trend in corporate environmental strategy—an integrated approach to managing impacts on ecosystems rather than managing singular issues such as greenhouse gas emissions. Today, companies such as Disney are viewing the big picture, with an aim to have net positive impacts on ecosystems as a whole.
Mainstream investors are also focusing on integration by incorporating environmental, social, and governance (ESG) issues into their decision-making processes. BSR's Advisory Services Director Laura Gitman, who leads our financial services practice, outlines how this trend is affecting global companies, and what they can do to prepare for ESG integration.
 |
In Depth
Considering the Big Picture
By Linda Hwang, Manager, Research & Innovation, BSR; Kit Armstrong, Senior Advisor, BSR; and Sissel Waage, Senior Advisor, BSR
With increasing pressure on companies to consider landscape-level impacts in corporate environmental performance, BSR's new report provides guidance on which emerging tools are right for your company.
Read more →
|
Spotlight
Capitalizing on ESG Integration
Mainstream investors are increasingly integrating environmental, social, and governance (ESG) issues into their decision-making processes. According to a recent BSR report, this shift is exemplified by increased participation in responsible investing, new ESG products from mainstream institutions, greater access to company data (especially ESG data), and a rise in regulation of ESG reporting.
Global companies from all sectors should prepare for the ESG integration trend by taking the following steps:
- Build internal knowledge about investment trends, ESG issues, and their relation to business performance.
- Understand your company’s material issues. Investors want to know which issues are most likely to impact your company’s financial performance and why.
- Define the business case for corporate responsibility practices by identifying the risks and opportunities associated with ESG issues.
- Proactively communicate to investors about your ESG performance.
For more information on how to capitalize on the increasing interest in ESG integration, contact Laura Gitman.
Quick Hit
ESG Integration in Emerging Markets
By Elissa Goldenberg, Associate, Advisory Services, BSR
Eurosif's "Emerging Markets Report</a>" explores the integration of ESG factors into business operations and reporting by companies in emerging markets, which is on the rise but still lower than in developed markets
The chart below shows the degree of ESG integration in developed and emerging markets. Among emerging-market regions, South African and Latin American companies are the most advanced on ESG issues, and South African companies scored higher on average than those in the United States and Canada. The chart shows the total number of companies in the research sample as well as the highest, lowest, and average degree of ESG integration for a company in a given group.
Other report highlights include:
-
While nine out of 10 emerging-market companies provide disclosure on environmental and/or social issues, the proportion of companies providing external verification or adopting recognized reporting guidelines drops significantly.
-
Forty-two percent of emerging-market companies make environmental commitments, but they remain weaker on implementation and tracking progress.
-
Chinese companies greatly underperform with regard to the integration of social issues, particularly when it comes to labor and corruption policies.
View larger image
|
|
|
