You’re already doing it.
Now report it.
FinComm Services helps companies meet investors’ growing need for ESG information.
- Getting questions from investors about your environmental, social, or governance (ESG) issues?
- Seeing your peers increasing their ESG disclosures?
- Discovering ESG ratings out there assessing your performance - incorrectly?
- Wondering what all the fuss around ESG issues is about?
Then it's time to start working together on a strong, standards-based ESG-reporting game plan. No step change required. The important thing is to start.
“ Investors are increasingly adopting the practice of integrating environmental, social, and governance (ESG) considerations in their analysis and decision-making process, to reduce risks and improve returns.
Financially material ESG issues are business issues that are critical to your business and your long-term success. What’s new is not that they are important to your business, it’s that capital market participants are now explicitly paying attention to them, and their information needs are growing as a result. ”
-Marie-Josée Privyk, CFA, RIPC, SASB-FSA Credential holder
The FinComm Value Proposition
Providing a strong, standards-based ESG-reporting game plan. No step change required.
Using internationally recognized standards and reporting methods, I help Boards and C-suite executives:
I will work with you on giving your company an ESG-reporting game plan that will be based on three pillars.
The output of this approach is a cost-effective course of action to provide decision-useful ESG reporting to investors.
You can have a plan in place within 30 days, that will have you reporting on your ESG issues within six months.
A stronger reputation, lower risk profile, and higher market value.
The SASBTM sustainability disclosure standards
The Sustainability Accounting Standards Board has developed industry-specific disclosure standards across environmental, social, and governance topics that facilitate communication to investors of financially material, decision-useful information.
The TCFD financial disclosures recommendations
The global Financial Stability Board’s Taskforce on Climate-related Financial Disclosures has provided recommendations for voluntary, consistent [climate-related] financial risk disclosures for companies to use when providing information to investors, lenders, insurers and other stakeholders.
Your existing internal systems and processes
My approach requires no step-change and it does not involve a huge ramp-up time. It leverages the systems and processes that you currently have in place, namely those related to governance, risk management, and reporting.
Identify your financially material ESG issues
Material ESG issues are business issues that can affect your operating and financial performance, risk profile, and future prospects. They are specific to each sector, and ultimately to each company.
Most companies have 5 to 6 material ESG issues.
Determine what to report
Investors are looking for decision-useful information pertaining to the governance oversight, the management approach, and the actual performance (think metrics) of each material issue.
Decision-useful information is consistent, comparable, balanced, reliable, and timely.
Determine where to report it
Information that is intended for investors should be located where they can easily find it. Fortunately, as their needs grow, investors are expanding their sources of decision-useful ESG information.
There are many ways to provide ESG information to investors. The important thing is to start.
What is ESG?
We call ESG issues the business issues that also happen to be characterized as environmental, social, or governance issues.
ESG issues are business issues. Here are some examples:
How does ESG reporting create value for companies?
Investors are increasingly adopting the practice of integrating environmental, social, and governance (ESG) considerations in their analysis and decision-making process.
Why? Because a better understanding ESG issues helps them make better investment decisions, reduce risks, and improve returns.
As a result, they are seeking consistent, comparable, reliable, timely, and measurable information about ESG issues that are financially material to companies’ risk profile, operating performance, and long-term prospects.
They incorporate this information into their financial forecasts, discount rates, and valuation multiples for companies.
Is this new?
Yes and no.
The fact that companies must manage their material business issues – including their ESG issues – not only to survive, but to thrive is not new. Companies that are doing well are managing their material ESG issues well, they just may not be calling them that. They aren’t reporting on them because until recently, no one was asking. They were just part of ‘good management’.
What is new, is that investors are explicitly considering these issues when making capital allocation decisions… and they are wanting much more information as a result.
ESG integration is part of responsible investment practices, which have gained significant momentum in recent years, and are fast becoming mainstream. In Canada, 79% of institutional investors now have a responsible investment policy, according to the Responsible Investment Association. And across the world, there are now more than 2,500 signatories to the United Nations Principles for Responsible Investment (UN PRI).
Energy efficiency, water usage, waste management.
Employee health and safety, talent attraction and retention, pay equity.
Climate change, culture and ethics, cybersecurity.
The Risks of Inaction
- Lack of information often leads to loss of trust in the Board and C-Suite
- The company is perceived as more risky, less prosperous, or less competitive
Higher risk profile
- Greater uncertainty is created by the absence of information
- This may lead to disclosure liability risk down the road
Lower market value
- Higher risk profile means higher cost of capital
- Higher risk and less visibility on prospects mean lower forecasts
- Either or both mean lower multiples
Marie-Josée Privyk, CFA, RIPC, SASB-FSA Credential holder
I am passionate about fulfilling my mission of helping companies improve their environmental, social, and governance (ESG) reporting to meet investors’ growing information needs and reap the benefits of better performance, better access to capital, and higher valuation.
I have built a career in capital markets – from sell-side analyst and head of research to director of investor relations and sustainable development for a publicly listed company, and to ESG integration consultant – which uniquely positions me, I believe, at the nexus of companies and investors.
- B.Comm. in Finance from McGill University
- Certificate in Applied Communications from Université de Montréal
- CFA Charter Holder
- SASB FSA Credential Holder (Fundamentals of Sustainability Accounting)
-RIA RIPC designation (Responsible Investment Professional Certification)
- PRI Academy Advanced Responsible Investment Analysis