Afleveringen
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Episode Overview: In this episode, Matt Orsagh and Nawar Alsaadi of ED4S sit down with Jon Lukomnik, a leading figure in sustainable finance and co-author of Moving Beyond Modern Portfolio Theory. Jon explores the limitations of Modern Portfolio Theory (MPT) in addressing long-term, systemic risks like climate change, highlighting the evolution toward "system-level investing."
Key Takeaways:
Limitations of MPT:
MPT is designed for idiosyncratic risk (individual asset variance) but fails to account for systemic risks, which cannot be diversified away. Lukomnik notes that while MPT focuses on market-relative risk, it overlooks larger economic and environmental factors that affect the entire market.System-Level Investing:
Lukomnik advocates for a shift towards system-level investing, where investors engage in strategies to mitigate systemic risks like climate change, inequality, and biodiversity loss. This approach involves collaborative stewardship and policy engagement to reduce overall portfolio risk.Collaboration and Collective Action:
Collaborative efforts, such as Climate Action 100+, enhance the impact of investors on global issues. Though the free-rider problem exists, Lukomnik observes that collective initiatives are crucial in addressing systemic challenges.Practical Approaches:
Practical tools for system-level investors include investment enhancements (e.g., climate-aligned private equity and infrastructure projects), stewardship, policy advocacy, and setting clear boundaries for ESG targets. Engaging with policymakers and stakeholders strengthens the collective response to systemic risks.The Role of Policy:
Effective systemic risk mitigation requires a synergy between investors, policy, and NGOs. Policy is critical in shaping sustainable practices, yet investor engagement and capital flow remain vital in driving actionable change. -
Hosts:
Matt Orsagh, Chief Content Officer at ED4S Nawar Alsaadi, CEO of Kanata Advisors, Chief Advisor at ED4SGuest:
Natasha Chaudhary, Research Fellow at The Institute for Climate Economics (I4CE)Episode Focus:
The concept of stranded assets and a shift toward "assets at risk" to better support financial institutions in navigating climate-related financial risks.Key Takeaways:
Stranded Assets Explained:
Traditionally associated with fossil fuels, stranded assets refer to devalued resources due to regulatory, market, or physical climate changes. Current definitions often focus on oil, gas, and coal sectors, but the concept can apply across industries.Reframing to "Assets at Risk":
Natasha advocates shifting from "stranded assets" to "assets at risk," broadening the focus to include potential asset value losses across all sectors under transition pressures. This proactive approach allows financial institutions to better anticipate risks and guide capital toward sustainable investments.Proactive Risk Management:
"Assets at risk" encourages financial institutions to manage risks dynamically, considering the entire value chain and transition readiness of companies, thereby supporting real-economy decarbonization rather than simply divesting from risky sectors.Sectoral Examples Beyond Fossil Fuels:
Key sectors such as real estate, agriculture, and automotive also face significant risks. For example, the EUâs building regulations for decarbonization by 2050 and the upcoming ban on internal combustion engines by 2035 present immediate risks to financial portfolios.The Need for Regulatory Guidance:
Clear regulatory frameworks and standardized transition plans are essential to accurately assess transition readiness across sectors, helping institutions manage climate risks effectively.Conclusion:
This episode emphasizes the importance of expanding the stranded assets framework to support proactive and comprehensive risk management across sectors, highlighting the role of financial institutions in driving climate-aligned investments. -
Zijn er afleveringen die ontbreken?
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Hosts:
Matt Orsagh, Chief Content Officer at ED4S Maria Meyer, Founder and CEO of ED4S Nawar Alsaadi, CEO of Kanata Advisors, Senior Advisor to ED4SEpisode Focus:
A discussion on ED4Sâs new paper, âOperationalizing Sustainability: Eight Key Roles in Finance,â which offers practical guidance for embedding sustainability in financial roles.Key Takeaways:
Purpose of the Paper:
This paper addresses how financial professionals can operationalize sustainability in their day-to-day roles. As organizations mature in ESG, there is a need to integrate sustainability practices within various job functions.Roles Covered:
The eight key roles analyzed include: Commercial Lending Representative, Communication Specialist, Financial Advisor, Investment Analyst, Portfolio Manager, Procurement Specialist, Risk Manager, and Software Developer.Challenges and Insights:
Integrating ESG into distinct financial roles is challenging due to the varied nature of each job and the need for organization-wide cultural support. Cross-departmental collaboration is essential for ESG success, requiring buy-in from leadership.Structure of Each Role Profile:
Each role section includes an overview, essential skills, relevant ESG resources, practical case studies, and a suggested workflow, tailored to help professionals integrate ESG seamlessly.Future of ESG in Finance:
As ESG regulations and standards evolve, ESG integration will likely become a routine part of financial roles, reducing the need for specialized guides. Increased systems-level thinking and technology integration are expected to play critical roles in this evolution.Conclusion:
This episode highlights the importance of ESG knowledge across financial roles and the need for practical, role-specific guidance. The paper aims to equip financial professionals with actionable steps to embed sustainability in their daily responsibilities.---
To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: https://www.ed4s.org For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: [email protected] About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment. -
Sustainability in Motion Podcast â Episode: Sustainable Stock Exchanges Initiative
Hosts:
Matt Orsagh, Chief Content Officer at ED4S Maria Maisuradze, Founder and CEO at ED4SGuests:
Tiffany Grabski, Head of SSE Academy Anthony Miller, Coordinator of the Sustainable Stock Exchange (SSE) InitiativeEpisode Focus:
This episode explores the Sustainable Stock Exchanges (SSE) initiativeâs role in advancing sustainable finance and how the SSE Academy supports education and training in sustainability for exchanges and market participants globally.Key Takeaways:
Overview of SSE and SSE Academy
Launched in 2009 by the UN, the SSE works with over 130 stock exchanges worldwide to promote sustainable finance. The SSE Academy provides free market education to help exchanges and market participants understand and implement sustainability practices.Mandatory ESG Disclosure and Reporting Trends
There is a global trend towards mandatory ESG disclosure, with 38 markets now requiring sustainability reporting. Many exchanges align their requirements with standards like IFRS, GRI, and the European Sustainability Reporting Standards (ESRS), streamlining ESG reporting globally.Consolidation and Alignment of Standards
The IFRS Foundationâs integration of climate and sustainability reporting standards helps companies reduce the âalphabet soupâ of ESG requirements. This consolidation supports global alignment, enabling companies to navigate sustainability reporting more effectively.The Role of Exchanges in Capacity Building
Stock exchanges are uniquely positioned to promote sustainable practices through market education. The SSE Academy has trained over 30,000 participants globally, helping exchanges meet sustainability demands without additional costs.Challenges and Opportunities in Listing
While listing is complex and resource-intensive, exchanges provide guidance to help companies meet ESG expectations. The SSE offers tools and guidance on ESG best practices, benefiting listed and private companies that engage with listed entities.Conclusion:
The SSE initiative plays a crucial role in advancing sustainable finance by building capacity, aligning standards, and reducing barriers to ESG compliance, helping stock exchanges worldwide to promote sustainable practices effectively. -
Sustainability in Motion Podcast - Episode 11: Are companies ready for the polycrisis?
In this episode of the Sustainability in Motion Podcast, Matt Orsagh and Maria Maisuradze of ED4S talks with Alice Krogh, founder of arkH3, about corporate systemic leadership, ecological overshoot, and the role of businesses in driving sustainability. arkH3 advocates for a model where companies lead systemic change and embed sustainability into strategy, rather than treating it as a side project.
Key Takeaways:
Corporate Systemic Leadership: Alice introduces corporate systemic leadership, a form of action where companies take the lead in addressing complex global challenges. This approach goes beyond traditional systems thinking and emphasizes a strategic alignment with sustainability at the core of business.
Understanding Ecological Overshoot & Social Undershoot: Alice discusses ecological overshoot as the point where humanity exceeds Earthâs capacity, much like an âoverdrawnâ bank account, while social undershoot highlights unmet basic needs and rights globally. Both issues stem from a business model prioritizing GDP growth over planetary health.
Current State of Business Preparedness: Many companies are underprepared for a sustainable future, often focusing narrowly on climate change rather than broader systemic risks. True readiness requires systemic foresight, holistic strategies, and adaptation to ecological limits.
Business as the World Needs: Moving from "business as usual" to "business as the world needs" involves prioritizing essential needs, ecosystem health, and systemic interventions over profit growth. This shift is essential to secure a livable future within planetary boundaries.
The Role of Policy and Big Business: Significant systemic change requires both policy reform and corporate leadership. Given limitations in policy implementation, Alice argues that business leaders and investors should advocate for transformative policies and lead by example in driving systemic change.
Conclusion: This episode emphasizes the urgent need for corporate systemic leadership and transformative change. It calls on businesses to redefine their roles within society, adapt to ecological realities, and contribute proactively to a sustainable future.
For more insights, visit ED4S at ed4s.org.
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Sustainability in Motion Podcast âEpisode 10: The Corporate Sustainability Reporting Directive
Hosts:
Matt Orsagh, Chief Content Officer at ED4S Nawar Alsaadi, Founder and CEO of Kanata Advisors and Chief Adviser to ED4SGuest:
Erin Knowles, Manager at Position GreenEpisode Overview:
In this episode, Matt and Nawar discuss the EUâs Corporate Sustainability Reporting Directive (CSRD) with Erin Nolles from Position Green, diving into what it means for companies inside and outside of the EU, and the preparation necessary for compliance. Erin provides insights on Position Greenâs approach to helping companies align with these new, rigorous reporting standards, sharing Position Greenâs own journey in navigating CSRD.Key Takeaways:
What is CSRD?
The CSRD replaces the Non-Financial Reporting Directive (NFRD), with expanded requirements for sustainability reporting that must be integrated alongside financial disclosures. This regulation applies to EU-based companies and international companies with substantial EU business, marking a transformative shift to align sustainability reporting on par with financial reporting.Double Materiality as a Core Principle:
A unique feature of CSRD is the double materiality assessment, which requires companies to evaluate both the financial impacts of sustainability issues and their environmental and social impacts. This ensures companies report on their outward sustainability impacts alongside financial risks they face due to sustainability factors.Preparation and Timelines:
CSRD compliance will be phased in over several years, with some non-EU companies affected by 2028-2029. Erin stresses the importance of starting early to manage the extensive data collection and stakeholder engagement processes required. Position Green recommends companies perform a âfoundational reportâ ahead of formal compliance deadlines to identify gaps and prepare for required external assurance.Implications for Global Companies and Investors:
Companies outside the EU may still be affected if they are part of the value chain for EU-based companies. Additionally, investors benefit as CSRD aims to create more consistent, comparable sustainability data, reducing âgreenwashingâ and providing credible data for investment decisions.Position Greenâs Approach and Resources:
Position Green combines consulting and software to streamline CSRD compliance, providing tools to track and organize sustainability metrics effectively. The company has also published resources, guides, and webinars to assist companies in understanding and preparing for CSRDâs requirements.Conclusion:
This episode underscores the need for companies to prioritize CSRD preparation, starting with a robust double materiality assessment and engagement across their organizations. By tackling this early, companies can ensure compliance and set themselves up for more sustainable and transparent operations that align with growing investor expectations. -
Sustainability in Motion Podcast â Episode 09: ESG from a Legal Perspective
Hosts:
Matt Orsagh, Chief Content Officer at ED4S Nawar Alsaadi, Founder and CEO of Kanata Advisors and Chief Adviser to ED4SGuest:
Christine Uri, Founder of ESG for In-House CounselEpisode Overview:
In this episode, Matt and Nawar are joined by Christine Uri, founder of ESG for In-House Counsel, to explore the role of legal teams in managing ESG risks and opportunities. Christine discusses the evolving ESG landscape, including the growing importance of compliance, managing climate litigation, and strategies for building sustainable, legally compliant programs.Key Takeaways:
Complexity of ESG Reporting and Compliance:
ESG reporting has evolved from a response to investor interest to an essential compliance exercise, especially with regulatory frameworks like the EUâs Corporate Sustainability Reporting Directive (CSRD). Christine emphasizes the struggle companies face in meeting vast reporting requirements and how in-house legal teams play a pivotal role in ensuring compliance and avoiding greenwashing risks.Optimal Placement of ESG Functions in Companies:
ESG functions can reside in various departments, such as finance, legal, or sustainability. Christine highlights the importance of cross-functional collaboration and executive alignment, noting that the optimal setup often depends on company size and leadership dynamics. Increasingly, legal teams are involved due to regulatory complexities.Minimum Viable Reporting Concept:
Christine advocates for âminimum viable reporting,â especially for mid-sized companies overwhelmed by exhaustive reporting standards. This approach allows companies to provide essential ESG information in a focused, repeatable way that meets stakeholder needs without extensive resources.Rise of Climate and Environmental Litigation:
Climate litigation is on the rise, with activists targeting specific industries and practices. Christine advises companies to be cautious with public ESG statements and implement rigorous review processes to avoid legal exposure and reputational risk.Future Trends â Biodiversity and Global Standardization:
Christine forecasts that biodiversity and natural capital will soon become focal points in ESG, with regulatory standards following in a few years. She also compares ESG reportingâs global spread to the GDPR privacy regulations, indicating that standard ESG practices may soon become a global business norm.Conclusion:
This episode underscores the need for companies to integrate ESG into core business practices, prepare for heightened scrutiny, and focus on strategic, actionable reporting. Legal teams are essential in steering sustainable, compliant ESG programs that safeguard both the companyâs reputation and its future regulatory standing. -
Sustainability in Motion Podcast â Episode 08: Sustainability Training
Hosts:
Matt Orsagh, Chief Content Officer at ED4S Maria Maisuradze, CEO at ED4S Guest: Terry Thornton, Founder of Educate Ethos ESGEpisode Overview:
In this episode, Matt and Maria are joined by Terry Thornton, a seasoned sustainability educator and founder of Educate Ethos ESG. They discuss the importance of sustainability training, the evolving motivations behind it, and how organizations can better equip their employees to meet growing ESG demands. Terry shares insights on how companies can shift from reactive compliance to proactive, impact-driven sustainability strategies.Key Takeaways:
Shift from Compliance to Impact:
Terry highlights the changing landscape: what began as a compliance checkbox is evolving as more companies recognize the strategic value of sustainability. However, many are still motivated by minimal compliance rather than maximizing ESG impact, leading to ineffective, generalized training.Tailored, Role-Specific Training:
To drive real change, sustainability training must be relevant to each role. From IT to finance, employees need context-specific ESG knowledge to see value in the training and to apply it effectively in their daily work.The Business Case for Sustainability Training:
Effective ESG training provides ROI through enhanced innovation, cost savings, and reputation management. However, itâs essential that companies track the impact and integrate sustainability into performance metrics to realize these benefits.Integrating Sustainability into Company Culture:
Embedding sustainability into company culture, rather than treating it as a separate topic, is crucial. Existing systems like performance evaluations, onboarding, and regular training sessions should incorporate ESG goals to encourage a seamless shift.The Role of AI in Sustainability Training:
The rise of generative AI has set new expectations for on-demand, personalized training. Companies must leverage existing tools efficiently and consider AI-driven solutions to keep up with dynamic ESG developments and deliver real-time, relevant content.Conclusion:
Sustainability training is essential for navigating todayâs evolving ESG demands. Companies need to move beyond compliance, develop role-specific training, and embed ESG into the organizational fabric to create meaningful change. -
Sustainability in Motion Podcast â Episode 7: How well are financial advisors serving client sustainability needs?
Hosts:
Matt Orsagh, Chief Content Officer at ED4S Maria Maisuradze, CEO of ED4S Guest: Stephen Kibsey, Analyst, Portfolio Manager, and LecturerEpisode Overview:
This episode dives into ED4Sâs latest report from a âsecret shopperâ campaign, evaluating how well financial advisers across Canada handle client interest in sustainable investing. ED4S engaged financial advisers from various firms to understand their readiness to meet clientsâ ESG and sustainability goals. Joined by secret shopper Stephen Kibsey, the discussion unpacks the findings, challenges, and potential solutions to improve sustainable investing advice.Key Takeaways:
Background and Motivation
Maria Maisuradze shares her experience with financial advisers who were dismissive of sustainable investment inquiries, which inspired the secret shopper initiative. Since Canadaâs regulations now require ESG factors to be part of the "Know Your Client" process, this study seeks to understand if advisers are integrating these requirements effectively.Study Findings
Less than 25% of advisers mentioned ESG or sustainability without prompting, even though surveys indicate strong client demand for these considerations. Once prompted, about 67% of advisers addressed ESG topics, yet only half demonstrated a good understanding of various ESG approaches.Challenges for Advisers
High turnover, lack of formalized training, and a disconnect between personal interest and corporate priorities hinder advisersâ ability to fully serve clients seeking ESG investment options. Even advisers with over 10 hours of sustainability training sometimes struggled to effectively guide clients.Importance of Training and Incentives
Both Stephen and Maria stress the need for better ESG training and communication. Maria points out that the complexity of fund sheets and inconsistent ESG labeling adds confusion. Additionally, Stephen highlights that financial institutions should invest in ongoing, practical education and tools for advisers.Cultural Shift in Financial Institutions
To truly embed sustainability, companies need support from top leadership. A culture that values ESG, starting from the CEO, will drive meaningful change across financial services, aligning firms with long-term sustainability goals.Conclusion:
-- Download the report: https://www.ed4s.org/reports
This secret shopper report highlights a clear gap between client demand for sustainable investing and the financial industryâs ability to deliver. Better training, incentives, and alignment from the top down can bridge this gap, ensuring advisers are prepared to meet the growing interest in ESG investing.----
To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: https://www.ed4s.org For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: [email protected] About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment. -
Sustainability in Motion Podcast â Episode 6: Sustainability and Proxy Season
Hosts:
Matt Orsagh, Chief Content Officer at ED4S Nawar Alsaadi, CEO and Founder of Kanata Advisors, Chief Adviser at ED4S Guest: Heidi Welsh, Executive Director at the Sustainable Investments InstituteEpisode Overview:
In this episode, Matt and Nawar speak with Heidi Welsh of the Sustainable Investments Institute to discuss key trends and issues in the current proxy season. They explore the impact of shareholder proposals, evolving topics within ESG, and the rise of anti-ESG movements that challenge the growing sustainability focus in proxy voting.Key Takeaways:
Top Issues in Proxy Season
ESG topics in proxy season are segmented into corporate political spending, environmental issues (primarily climate), and social policy topics (e.g., human rights, diversity, and equity). Political spending is particularly impactful as it connects with various other sustainability topics and policies.Historical Context of Proxy Issues
Originally centered around social justice topics like South African apartheid, shareholder proposals have evolved to encompass climate change and human rights, reflecting the broader societal concerns of the time. Quantification of climate risk has made ESG more mainstream, influencing Wall Streetâs risk analysis.Growth of Anti-ESG Movement
Anti-ESG proposals have surged, often challenging diversity and corporate social policies. Despite this, investor support for these proposals remains low (average 2.5%). Nevertheless, the political nature of these anti-ESG proposals continues to impact corporate engagement on sustainability.Shifts in Investor Engagement
Today, thereâs a more collaborative approach between investors and companies, as sustainability-focused investors seek to influence corporate practices through constructive dialogue. Proxy proposals now serve as a last resort, often preceded by extensive engagement efforts.Regulatory Considerations and the âActing in Concertâ Rule
Anti-ESG advocates have leveraged regulatory interpretations (such as âacting in concertâ) to deter collective investor actions on sustainability. However, sustainable investors argue that collaboration is essential for addressing complex ESG issues and enhancing risk management.Conclusion:
This episode highlights the shifting dynamics of shareholder engagement on sustainability. As climate and social issues become integral to business strategies, proxy season remains a key avenue for investors to voice concerns and influence corporate practices. Despite challenges from anti-ESG movements, the demand for transparency and long-term risk management continues to grow, underscoring the enduring importance of ESG in corporate governance.---
To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: https://www.ed4s.org For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: [email protected] About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment. -
Sustainability in Motion Podcast â Episode 5: Embedding Sustainability with IBMâs âBeyond Checking the Boxâ Report
Hosts:
Matt Orsagh, Chief Content Officer at ED4S Maria Maisuradze, CEO at ED4S Nawar Alsaadi, CEO and Founder of Kanata Advisors, Chief Adviser at ED4SEpisode Overview:
In this episode, the ED4S team dives into IBMâs âBeyond Checking the Boxâ report, which explores how companies that embed sustainability into their core business operations and culture see greater profitability and growth. They discuss the importance of operationalizing sustainability and the critical role of corporate culture, training, and data management in achieving sustainability goals.Key Takeaways:
Embedding Sustainability Yields Financial Benefits
The IBM report reveals that companies integrating sustainability across all operations achieve 52% higher profitability and 16% higher revenue growth than peers. Itâs clear that sustainability, when treated as a core business strategy, drives real value and competitive advantage.The Gap Between Strategy and Implementation
While 76% of executives acknowledge sustainabilityâs importance, only 31% have embedded it into their data and operations. This gap highlights the need for sustainability training, goal alignment, and actionable objectives across departments, not just at the executive level.Data Management and Integration
Effective sustainability requires robust data infrastructure. The report notes that only 4 in 10 companies have systems in place to gather sustainability data across enterprise systems, underscoring the need for better data tools and cross-functional alignment to make informed sustainability decisions.The Role of Training in Driving Cultural Change
Upskilling employees at all levels helps build a sustainability-focused culture. Training enables teamsâwhether in marketing, finance, or HRâto understand their role in sustainability and align with the companyâs broader goals, fostering a holistic approach to sustainability across departments.Sustainability as Good Business, Not a Compliance Exercise
Companies that view sustainability as a compliance task miss out on real value. By fostering a sustainability-focused culture and embedding ESG considerations into daily practices, organizations can achieve long-term resilience, improved innovation, and operational efficiency.Conclusion:
As IBMâs report illustrates, companies that fully embrace sustainability are more resilient, innovative, and profitable. The journey to embedding sustainability is challenging, but essential for long-term success. For businesses and investors alike, a sustainable strategy is becoming synonymous with good business strategy.---
To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: https://www.ed4s.org For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: [email protected] About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment. -
Hosts:
- Matt Orsagh, Chief Content Officer at ED4S
- Nawar Alsaadi, CEO of Kanata Advisors, Chief Advisor to ED4SGuest:
- Pavan Sukhdev, CEO of GIST Impact, sustainability expertEpisode Focus:
The economic invisibility of nature, the importance of valuing environmental and social impacts, and the role of companies and regulators in driving sustainability.---
Key Takeaways:
1. Economic Invisibility of Nature:
- Pavan highlights the importance of valuing natural and social impacts in corporate decision-making. Despite greater awareness, externalities like clean air, biodiversity, and community health often remain economically invisible, needing urgent policy integration.2. Shifting Corporate Purpose:
- Traditional corporate performance focuses on financial returns to shareholders. Pavan advocates for a four-dimensional performance model, measuring impacts on natural, human, and social capital alongside financials to reflect true corporate value.3. The Role of Regulations and Policy:
- Europeâs CSRD and other global regulatory frameworks are pivotal yet complex. Simplifying and integrating sustainability data into fewer, material indicators could enhance corporate accountability and help policymakers focus on significant social and environmental impacts.4. GISTâs Mission and Future Goals:
- GIST Impact aims to quantify and make visible the economic value of sustainability impacts. Pavan envisions a future where this framework is accessible to the general public, enabling broader understanding and support for sustainable practices.5. Moving from Conversation to Action:
- While sustainability is more discussed today, actual policy and business decisions lag. Pavan stresses the need for a global shift to impact-focused regulations, suggesting that Europe and regions facing environmental challenges lead the way.---
Conclusion:
This episode emphasizes the need for transparency and accountability in corporate sustainability, advocating for holistic impact accounting. By integrating sustainability into economic decisions, businesses can align better with societal and environmental needs.---
To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: https://www.ed4s.org For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: [email protected] About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment. -
Hosts:
- Matt Orsagh, Chief Content Officer at ED4S
- Nawar Alsaadi, CEO and Founder of Kanata Advisors, Chief Advisor to ED4SEpisode Focus:
Understanding how investors use sustainability (ESG) data and discussing the nuances around financial materiality, investment strategies, and the impact of ESG in todayâs investment landscape.---
Key Takeaways:
1. Understanding Financially Material ESG Data:
- Financially material data is defined as any ESG data point that impacts financial metrics (e.g., revenue, expenses, net income) and varies by industry.
- For example, fuel costs are crucial for airlines, while data privacy is highly relevant for tech companies.2. Defining Materiality in ESG:
- Materiality definitions vary slightly across countries but generally encompass information essential to an informed investor's decision-making process.
- Historical context: ESG integration has evolved significantly since the early 2000s, spurred by initiatives like the UN PRI, which sought to standardize ESG data incorporation.3. How Investors Use ESG Data in Practice:
- ESG data supports various investment processes, including product development, security selection, portfolio construction, and risk management.
- Investors often tailor ESG use based on their primary goals (e.g., return-focused or impact-driven).4. Best Practices for Using ESG Data:
- Transparency in ESG strategy and data sources is crucial, as is regularly updating the materiality matrix to prioritize relevant data points.
- Creating a materiality matrix helps investors and companies clarify what ESG factors matter most within specific industries, improving decision-making.5. Examples of Material ESG Data for Investors:
- Employee Engagement: Studies show that engaged employees contribute to better financial performance, with benefits such as higher sales, profitability, and lower safety incidents.
- Retail Example: Comparing employee engagement practices across companies like Costco, Walmart, and Target reveals differences that influence investor preferences and long-term valuation.6. Fundamental vs. Quantitative Investment Approaches:
- Fundamental Investors (Traditional): Use qualitative insights and financial data to assess companies, involving conversations with management and evaluating non-financial factors (like employee satisfaction).
- Quant Investors (Data-Driven): Employ models to identify ESG factors affecting large data sets, often favoring empirical data and consistent metrics like turnover rates and pay equity.7. Impact Investing and ESG Data Use:
- While similar to traditional investment processes, impact investing incorporates ESG data points for social/environmental goals even if they donât enhance returns.
- Trade-Offs in Impact Investing: Investors must be transparent about balancing financial returns with impact goals, especially in public markets where shareholder influence is dispersed.8. The Anti-ESG Movement:
- Anti-ESG sentiment has surfaced, largely driven by political motives and skepticism around the integration of non-financial data in investment decisions.
- Positive Impact of Scrutiny: This backlash is encouraging companies and investors to be more transparent and committed to authentic ESG integration, potentially weeding out greenwashing practices.
- Future Outlook: With 2024 being a significant election year worldwide, ESG-related debates may intensify, but ESG practices grounded in financial performance and value creation are likely to endure.Conclusion:
This episode underscores that ESG data, particularly financially material data, is vital in the investment process but is subject to ongoing scrutiny and evolution. The hosts discuss the importance of transparency, industry relevance, and thoughtful application of ESG data to both drive returns and create social/environmental impact.----
To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: https://www.ed4s.org For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: [email protected] About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment. -
Host: Nawar Alsaadi, Founder and CEO of Kanata Advisors, Chief Advisor at ED4S
Guest: Marie-Josée Privyk (MJ), Founder of Fincom Services, ESG Reporting ExpertEpisode Focus:
An in-depth discussion on the evolving landscape of ESG reporting, its importance, challenges, and best practices for companies.---
Key Takeaways:
1. Importance of ESG Reporting:
- ESG reporting is vital for meeting stakeholder demandsâinvestors, customers, governments, and employees increasingly want transparency on companies' material environmental, social, and governance issues.
- ESG considerations are integral to business management, translating into better risk management and long-term financial performance.2. Stakeholder Expectations:
- Stakeholders are not just investors but can include large customers, local communities, and regulatory bodies.
- Reporting on ESG issues helps companies manage risks related to climate, regulations, and reputation, ultimately enhancing valuation and access to capital.3. Challenges in ESG Reporting:
- Maturity Spectrum: Companies vary widely in their ESG maturity. A lack of understanding often leads to delays or âcheck-the-boxâ compliance instead of meaningful engagement.
- Resource Allocation: Insufficient resources remain a common hurdle. For effective ESG integration, there needs to be more investment in people, technology, and processes.
- Misconceptions about Reporting: Treating reporting as a one-time or standalone task, rather than as a continuous and integrated business practice, limits its effectiveness.4. Best Practices for Effective ESG Reporting:
- Standardization and Comparability: Follow a recognized standard for reporting, clearly define scope, context, and performance over time.
- Integration with Financial Reporting: Align ESG and financial reports to provide a complete picture of corporate performance.
- Clear Communication of Material Issues: Explain why specific ESG issues are relevant and how they impact the business. Setting and tracking targets further enhances credibility.5. Global ESG Regulation Trends:
- Europe is leading with comprehensive initiatives, such as the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS), which set a new standard for mandatory, standardized, audited, and digitized disclosures.
- The International Organization of Securities Commissions (IOSCO) and the IFRS Sustainability Disclosure Standards are gaining global traction, with many countries likely to adopt similar frameworks soon.6. Canadian Regulatory Landscape:
- Canada is advancing with federal regulations on climate and labor disclosures. The Canadian Sustainability Standards Board is working on standards aligned with global frameworks, potentially set for implementation by 2026.7. Future of ESG as a Management Tool:
- ESG reporting is not just a compliance exercise; it should serve as a management tool for companies to identify, manage, and measure performance on material ESG issues.
- Companies embracing this approach are better positioned to create long-term value and resilience.8. Fincom Servicesâ Role in ESG:
- MJâs company, Fincom Services, helps companies navigate ESG reporting requirements, develop practical reporting frameworks, and use ESG insights as a foundation for better decision-making.
- The goal is to make ESG reporting accessible and valuable for companies of all sizes, emphasizing a shift towards viewing it as a tool for sustainable business management.Conclusion:
This episode emphasizes that effective ESG reporting goes beyond compliance. It requires a strategic approach, sufficient resources, and integration with financial data. By adopting global standards, companies can achieve meaningful transparency, better risk management, and long-term sustainability. -
Sustainability in Motion Podcast â Episode 1: 2024 Outlook
Hosts:
- Matt Orsagh, Chief Content Officer at ED4S
- Maria Maisuradze, Founder and CEO at ED4S
- Nawar Alsaadi, CEO of Kanata Advisors, Chief Advisor to ED4SEpisode Focus:
In this inaugural episode, the ED4S team dives into their sustainability predictions for 2024, exploring regulatory impacts, the future of sustainability roles, the rise of biodiversity investments, and the evolving landscape of climate commitments.---
Key Takeaways:
1. Regulatory Push Intensifies
- As California and European regulations, including the CSRD, come into effect, companies will focus on implementation, impacting departments like finance and consulting. The move toward board accountability in Europe could drive deeper organizational change.2. Rise in Biodiversity and Natural Capital Investments
- Following the TNFDâs release, interest in biodiversity-focused funds is expected to grow, similar to climate-focused funds in recent years. This shift highlights the need for comprehensive biodiversity data and thoughtful investment structures.3. Evolving Role of CSOs
- The role of Chief Sustainability Officers may shift in 2024, with sustainability responsibilities diffusing across departments, such as finance. This could alleviate the overwhelming expectations on CSOs and embed sustainability more deeply within organizations.4. AIâs Role in ESG Data Management
- AI could play a crucial role in managing ESG data bottlenecks, automating data analysis, and providing actionable insights for sustainability professionals, ultimately enhancing workflow and reducing workload.5. COP 29 Expectations and the Future of Climate Summits
- The team predicts that COP 29 may face challenges, with possible economic downturns and political shifts potentially dampening progress. There is also speculation about whether COP events will continue to hold significance in the climate conversation.Conclusion:
This episode sets the stage for a year of change in sustainability, with regulatory advancements, innovations in ESG data management, and evolving corporate structures shaping the field.---
To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: https://www.ed4s.org For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: [email protected] About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment.
