Do you use non-financial information to improve your business?
ESG Report? Yes, but also...
Manage your ESG assets to generate impact and improve your company's profitability. The grouper ESG reporting it is no longer sufficient or differentiating. La active management of material aspects of ESG reporting today it is becoming a competitive advantage. World references such as SASB or GRIS they have been working on this dynamic for some time now.
What is active ESG management?
The concern for active management of ESG aspects, in Spanish ASG (acronym for Environmental, Social and Governance) is increasingly present in Company Boards of Directors.
This term, which comes from the investment world and which reflects the non-financial criteria that many already use when evaluating their potential investments, highlights the need that companies have to incorporate social and environmental impact at the core of their activity to be profitable in the medium and long term.
Why do you do an ESG report?
Many companies are already looking for ways to actively manage their ESG aspects as a way to improve their score in the ESG ratings and, therefore, to facilitate the access to capital, adapt to the regulation constantly evolving, don't lose your market share against competitors and take advantage of all the opportunities that this type of practice offers them.
Competitive transformation
93% of CEOS* consider it important to incorporate sustainability at the core of their companies and are focusing their efforts in this direction. This movement is leading to the day-to-day transformation of entire sectors and the repositioning of many companies, which requires moving forward so as not to be left behind.
UNCG “CEO Study on Sustainability”, 2019
New opportunities
Proactive management of ESG aspects can translate into:
- Innovation opportunities with impact (new business models, products/services, customer segments).
- Greater efficiency, rethinking the way you operate your business
(“doing more with less”). - Reduction of risks and improvement of positioning.
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Regulation of ESG reporting
Regulation is moving at great speed in this direction, seeking to create greater transparency and comparability around the contribution that companies make to society and the environment. Much of this regulation is driven by the European Union and has a direct impact on how companies operate and report their performance. Examples in this direction are:
- Law 11/2018 on the reporting of non-financial information.
- EU Green Deal.
- EU Sustainable Finance Action Plan. Restructuring funds focused on sustainability and cohesion.
- The EU is finalizing its Recommendation on the Non-Financial Information Directive (NFRD).
Access to capital
Around 30 trillion dollars, a third of the world's professionally managed assets, are already subject to ESG compliance and monitoring.
Between April and June 2020 alone, investors invested more than 70 trillion dollars in ESG Funds, indicating the strong growth of this type of investment. In addition, 75% of investors apply ESG principles to at least a quarter of their investment portfolio.
Why can Transcendent help you with ESG reporting?
Transcendent is a consultant specialized in Benchmark Business Impact in Spain. We have extensive experience in accompanying all types of companies in managing aspects of ESG reporting, turning them into a lever of improvement of their activity.
Contact us at gestionactivaESG@transcendent.es
