In its report "Change the Conversation: Redefining How Companies Engage Investors on Sustainability," nonprofit Ceres provides some guidance on how companies should best engage with their investors on the issue of sustainability. While almost half of the 600 largest US public companies communicate with investors about environmental, social, and governance (ESG) issues, according to Ceres, they could be doing a much better job of it. To that end, Ceres offers a set of nine recommendations "to guide companies toward more meaningful and effective investor engagement on ESG issues." What is the key message? Don't "fall into the trap of positioning sustainability as the 'right thing to do,' without making the connection to the business case." And make the business case for sustainability by tying it to financial performance and demonstrating that it can drive business value. Whether or not you buy into the whole program, you may still find Ceres' perspective and examples provided helpful in guiding your engagement efforts.
According to Ceres, a quarter of the dollars invested in the US is now ESG investment, raising the stakes on sustainability. Likewise, companies have increased their commitments to ESG. Ceres research shows that, among that 600 largest public companies, "nearly two-thirds have commitments to reduce greenhouse gas emissions, half are actively managing water resources, and nearly half are now actively protecting the human rights of their employees."
In addition, a number of respected academic and business sources confirm that, in light of risks arising out of climate change and similar issues, a "focus on a sustainable business strategy can provide a competitive advantage in stock price, cost of capital and operational performance. These trends underscore the link between ESG and financial performance and further demonstrate that those issues once considered extra-financial are, in fact, material financial risks and opportunities impacting the bottom line."
Read the full story here.
Find the report here.
Don't miss our latest HSE content, delivered to your inbox twice monthly. Sign up for the HSE Now newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
17 Mar 2020
- Calgary, Alberta, Canada
In this course, discover the field applications of machine learning with a focus on reservoir characterization, production analysis and prediction, and recovery enhancement.
29 - 30 Apr 2020
- Brisbane, Australia
We are in the throes of an energy transition - our energy system is evolving rapidly and diversifying, decarbonising and decentralising.
19 - 20 Feb 2020
- Lafayette, Louisiana, USA
Covering issues related to the identification, prevention, and remediation of formation damage
9 - 11 Mar 2020
- Muscat, Oman
Shaping the Future of the Energy Industry.
22 Apr 2020
- Bergen, Norway
The SPE Norway Subsurface Conference brings together the E&P industry to expand industry technical knowledge, connect with innovators and leaders and address technical challenges facing upstream oil and gas professionals.
29 Jan 2020 22:30 GMT
- Live, then On Demand
HSE Now is a source for news and technical information affecting the health, safety, security, environment, and social responsibility discipline of the upstream oil and gas industry.
©2003-2020 Society of Petroleum Engineers, All Rights Reserved.