We are in the high season of NFS (non-financial information statements)The report is based on a series of reports, integrated reports and sustainability reports.
In many cases, the people responsible for them chase their colleagues in search of the number, the data for the report, with a strict deadline because it then has to be verified, and in many cases this is the end of the year's exercise.
In some cases, the board of directors' approval of the integrated report will be missing, a procedure that in many cases is still just that, a mere formality, because it is not the part of the report that is discussed in more depth. Some of this information may be passed on to communication (internal or external) to feed into a sustainability report, the first objective of which is usually to make it look good.
It is true that more and more companies already know that the EINF matters, that their investors are going to look at it, that the ESG ratings and benchmarks They will search for and use the information and, therefore, they will start to be interested in it. This is why knowing how we can carry out a active ESG managementis very relevant for the company.
But what if?
What if the EINF had a storyline linking social and environmental impact with a company's business?
What if, in addition to including a few SDG logos, you went deeper into indicators and measures relevant to your sector and highlighted your company's contribution to the 2030 agenda?
What if the EINF was the last step in a strategic exercise of considering material aspects as part of the management of the company?
What parameters should be measured?
What if, instead of going it alone, we all used the same parameters to measure common issues? As explained by world leaders in business impact such as George Serafeim, Sir Ronald Cohen, Colin Mayer o Clara Barby in its article Measuring Purpose - An Integrated Framework, it would be useful to identify the parameters that companies need to measure in order to activate their purpose. For example:
- InputsThe financial, human, social, natural and physical resources that a company uses to carry out its activity.
- Outputsmeasuring what a company produces.
- Resultschanges generated by a company's activities.
- ImpactsThe effects on the well-being of others generated by that company on customers, employees, suppliers, societies and the environment.
But this kind of non-financial information is not the only or the last thing we can do. There is a further step, which is to monetise these metrics.
And why is monetisation key? Because such valuations allow resources and investments to be allocated. In the context of purpose, it is necessary to assign a value to the natural, social and human capital used to achieve that purpose. But beware, there is a risk of not valuing anything that does not have a price, and therefore of not investing in critical issues that no one has assessed.
From Transcendent We have long been making the management of non-financial parameters a competitive advantage for our clients, improving their results and their position in the eyes of their stakeholders.
Interested?
Do not hesitate to contact us at gestionactivaESG@transcendent.es if you are interested in learning more about the ESG management.Find out what else we can help you with at Transcendent!
