How important it too include investor in a ESG strategy >
by Juliana Cristancho -
Number of replies: 20
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Pearly Mershia -
I believe so. Investors (individuals, institutional, and retails) actually have a huge part in supporting the business from behind the stage. Depending on the structure and size of the company, investors can be actively involved in developing and implementing ESG strategies i.e. if they are also the founder and CEO of the business, but for larger corporations, investors are somehow seen outside of the frame, while they are actually not. Investors have the power and right to establish an advisory board and appoint the members based on their desired criteria to oversee the board of directors, through whom, I believe, the relevant sustainability agenda can be prioritized or accelerated. Larger investors mostly have their own portfolios thus they can be involved in associations focusing on sustainable financing, e.g. Global Sustainable Investment Alliance and similar organizations. From the reporting perspective, though, investors can use a third-party benchmark to independently assess company's ESG performance outside of Impact Report for example solutions offered by https://www.issgovernance.com/esg/
In reply to Pearly Mershia
Re: How important it too include investor in a ESG strategy >
by Thomas Ng -
This is good point to explore further. Dhana or Ee Beng, can you please share the research that we have on Impact Investment funds and how fast this has been growing. We often use this as one of the reasons why companies should consider ESG.
Also can someone please review ISS and give a short summary, especially in comparing it with the BIA.
Also can someone please review ISS and give a short summary, especially in comparing it with the BIA.
In reply to Thomas Ng
Re: How important it too include investor in a ESG strategy >
by Pearly Mershia -
Hi Thomas, I used to work in ISS years ago and when I left in 2017, the APAC HQ in Manila had just started their ESG department. Now, they've been growing tremendously. To provide a brief comparison, ISS and B Lab have a distinct market scope: ISS specifically serves institutional shareholders and publicly traded companies while B Lab uses a more holistic and inclusive approach in serving any business size and every impact area related to the triple bottom line.
In reply to Pearly Mershia
Re: How important it too include investor in a ESG strategy >
by Thomas Ng -
More importantly, we need to compare the tools themselves, irrespective of who they are meant for. Dhana, can you please attend to this. Thanks for the help, Peraly.
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Afonso Pedroso -
Hi, Juliana
Nice topic!
In my point of view, the answer is: crucial.
Nice topic!
In my point of view, the answer is: crucial.
Mainly for two reasons:
- as Pearly talked about it, they basically determine how a company would conduct their business and which stakeholders are considered when making decisions;
- talking about the ESG movement in general, having investors interested in ESG focused companies makes a huge difference to push more and more companies to adopt ESG practices since that's what the investors are looking for, as well as a growing share of customers.
Finally, based on the video above, ESG should start from the top and not be just a department of the company.
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Rose Ann De Mesa -
Investors plays huge part in the success of a company. As investors are always looking for the long term goals, this will be a futuristic factor that they will consider. Most specially in the current era that ESG has widen its scope and functionality in different field of business. Also, more and more regulations are being anchored to ESG.
In reply to Rose Ann De Mesa
Re: How important it too include investor in a ESG strategy >
by Mary Albert -
including investors in an ESG strategy is important for aligning interests, accessing capital, managing risks, enhancing performance, ensuring compliance, leveraging influence, maintaining competitiveness, and ensuring long-term sustainability. Engaging investors meaningfully in ESG efforts can lead to more robust and impactful strategies that benefit both the company and its stakeholders.
In reply to Mary Albert
Re: How important it too include investor in a ESG strategy >
by Ahsan Ali -
To Involve Investors into ESG Strategy is a key steps towards ESG Implementations, when investors know the long-term benefit of implementing ESG, they will be encouraged and show more interest towards investment, in future all organizations also seeking to invest and enhance ESG practices and these Eco friendly moves can catch users interest as well.
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Charlyne Bong -
Investors in ESG strategy is important as it represents the company and shows the company commitment towards the ESGs. It helps to drive the implementation practice of the organizations. It can also helps the company to be a role model for others in their own industries.
In reply to Charlyne Bong
Re: How important it too include investor in a ESG strategy >
by Juan Quintero -
Not only important, it is also ideal, not only because of the decision-making capacity at the organizational level, but also because of the influence it can generate in different sectors that have historically not addressed the need for ESG. Linking investor interests to the impact of ESG is a guarantee of transformation at all levels, of sustainability and of the possibility of increasing the impacts of the defined strategies.
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Jessica Minaya Story -
I believe that part of a successful strategy is to involve all the organizational structure of the company, in order for the employees to feel and be part of the same culture. ESG culture, should be focused on promoting equity, recognition as part of the same culture. As in the video said, the happier the employees, the more productive they will be.
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Rizza Tenorio -
I believe including investors in ESG strategy can make a big difference. Typically, investors consider whether company's shares represent a good value. By the term "good value", it should not only be about the financial matters alone. Nowadays, based also on the previous modules, I agree and believe that sustainability is already a factor to consider when it comes to investing. So, if investors are part of ESG strategies, they'll be able to gain a handful of experiences (e.g. good ESG strategies/implementations) for which they can also apply from one company to another. It will be like a powerful circle of influence.
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Sara Barajas -
Yes, seniour managers and investors should be involved and engaged since the very beginning in the development and implementation of the ESG strategy. As was mentioned in the video, for a ESG strategy to be successful, it should be embedded in the DNA of the company, being a long term journey. In this way top management and investors are key since their vision and decisions will have a direct impact on the implementation and importance given to the ESG strategy and to all the stakeholders involved.
Also from a perspective of corporate culture, is also crucial that top management and investors set the example of commitment towards ESG goals for them to be taken seriously and be accepted at all levels of the organization.
In reply to Sara Barajas
Re: How important it too include investor in a ESG strategy >
by Thomas Ng -
Good comments from all of you. The 3rd of the 4 reasons (in the first module) is about funding, banking and capital. The statistics for growth in impact investment funds, ESG conscious investors. There is evidence of this all over the place. Here is one article
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Kristina Golovina -
Having in mind investors ESG expectations, it is also a good idea to research and analyze, and check if all existing or potential investors have similar or varied expectations. To engage the investors, the company could also identify all internal and other external stakeholders who may influence or impact the ESG communication strategy. These stakeholders include internal teams such as marketing and corporate finance, and external stakeholders such as suppliers, customers and paid media.
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Presley Tan -
Yes, I strongly support this.
One company can attracting more investors who believe in this cause in return these investor will help to enhance the reputation of the company.
One company can attracting more investors who believe in this cause in return these investor will help to enhance the reputation of the company.
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Daniel Aviña-Ramírez -
I think is important not only to include inverstors in the design of ESG strategies, but also to educate them on how the company both is affected and affects global sustainability issues. This way the investor can understand better the context of the industry, how bussiness is conducted, and what technical and expert opinions provide innovation in the ESG realm according to the new strategies. It is important for inverstors to undestand the sustainability conceptions to fully embrace and appropiate the process and align the objectives between all stakeholders.
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Bhagyaraj K -
I believe that involving investors in ESG strategies can make a significant difference. Investors will also learn about the company's long-term sustainability strategies, problems, and solutions.
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Daniel Castañeda -
The active participation of senior management and investors is essential to create a comprehensive and effective ESG strategy. Their involvement aligns ESG goals with overall business strategy, enhances transparency, and supports the long-term sustainability and success of the organization.
In reply to Juliana Cristancho
Re: How important it too include investor in a ESG strategy >
by Amel Ahmed -
Companies that actively engage senior management and investors in ESG strategy can ensure that sustainability is integrated into their core business operations, creating long-term value for all stakeholders. They can also create stronger partnerships and improve their ESG performance.