The sustainability journey has undergone an evolution over the years, from Corporate Social Responsibility (CSR) originating in the 1960s to today’s Environmental, Social and Governance (ESG). Over the past ten years, driven by stakeholder expectations as well as asset owners and institutional investors’ engagement, more and more listed companies, especially larger companies, have incorporated ESG into their risk management processes, strategies and operations.
We help organisations of all sizes, private and public, for-profit and not-for-profit, enhance their sustainability and ESG performanceOur sustainability advisory services include ESG and directors’ duties, ESG materiality assessment and integration, impact analysis and ESG reporting and disclosure.
Corps Act s.180 states that a director or other officer of a corporation must exercise their power and discharge their duties with a degree of care and diligence. The increase of mandated reporting on ESG issues, such as climate-related financial disclosures and modern slavery reporting, suggests that ESG matters are now an important part of a board’s fiduciary duty landscape. However, directors may also be liable for ‘greenwashing’ disclosures if such disclosures are not underpinned by proper information, governance processes, strategy or action.
We can help review your organisation’s ESG governance structure, brief your board on the latest developments of director duties and responsibilities in relation to ESG, and assist your management in the integration of ESG material issues into corporate strategy, risk management, financial performance evaluation and reporting.
An ESG materiality assessment is a good start to better understand stakeholder expectations, identify material ESG issues, risks & opportunities, and then to manage and report on them.
Our services include stakeholder mapping, stakeholder engagement & consultation, ESG topic scoring and prioritisation, and the embedding of ESG priority topics into the organisation’s risk management framework and strategic & business planning processes.
Stakeholder engagement and consultation is the most critical part of a materiality assessment. This is generally done through a combination of both direct engagement such as workshops and one-to-one interviews and indirect consultation such as surveys. After obtaining opinions from the key stakeholders on the most significant ESG issues, we assess and score each ESG topic using a materiality matrix under the ‘double materiality principle’, and then recommend the material ESG topics to the organisation.
To help organisations keep pace with stakeholder expectations, create and preserve enterprise value and enhance impacts are at the core of our services.
We help organisations link the ESG risks and opportunities identified from the above processes to its financial performance and enterprise valuation, which includes assessing impacts on the organisation’s revenue and costs, assets and liabilities, and cost of capital.
Over the past few years, we have seen an increase in the demand of sustainability information from investors and other stakeholders. As part of our ESG Reporting and Disclosure services, we can help organisations find the sustainability standards or frameworks most suitable to them for public reporting and disclosure.
We also provide support to the organisation’s reporting processes, from advising on governance such as board’s roles, to the design and implementation of control procedures to improve data quality.