ESG - A GOVERNANCE PERSPECTIVE

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by Nikita Hunter3 views·Updated Feb 17, 2021
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  1. Hi, my name is Roxanne Clutter, and today I'll be
  2. discussing SG from a governance perspective.
  3. During my presentation, I'll be touching on ears.
  4. Gene S T.
  5. Reporting on the board's role in understanding ears gene ears
  6. G stands for environmental, social and governance.
  7. Environmental factors may include climate change, energy emissions, waste management
  8. and resource depletion.
  9. The social aspect assesses how a company acts in relation
  10. to human and labor rights, including the risk of child
  11. labor, workplace safety and if the company's partners live up
  12. to the same set of values.
  13. The third part of SG focuses on governance and business
  14. ethics. This includes that the company's financial statements and the
  15. company in general is transparent, that the shareholders voices are
  16. heard in important cases and that the company does not
  17. abuse its power or otherwise violate legal and ethical concerns.
  18. On a general level, SG analysis is a key element
  19. in the way investors for actively assess risks in a
  20. company Yes, G and why it is important.
  21. Financial figures alone no longer tell the company's whole story
  22. in it is not how much money a company makes,
  23. but rather how the company makes its money clearly communicating
  24. how your company's purpose is aligned to your ears to
  25. your reporting is crucial.
  26. Many governments in stock exchanges require businesses to provide some
  27. level of SG reporting.
  28. This has become important because of one.
  29. The growing social and environmental injustices, such as the disastrous
  30. explosion of BP oil rig in the Gulf of Mexico,
  31. two high profile corporate scandals such as folks bargains, violation
  32. of the Clean Air Act.
  33. And three the global financial prices.
  34. South Africa is only one off a few emerging market
  35. economies, showing a significant increase in E S jean companies
  36. listed on the JSE Emma's integrate ears to reporting with
  37. financial reporting, and if they do not do so, they
  38. will have to explain why they're not complying.
  39. What is S T reporting?
  40. Yes, your reporting is the disclosure of information relating to
  41. the company's impact, and it's added value in ears gene.
  42. Just a ZA company would produce financial reports.
  43. E. S G or sustainability reports provide a summary of
  44. disclosures which are supported by the assessment of the company's
  45. performance across these factors.
  46. The benefits of S G reporting some benefits of Easter
  47. reporting include increased understanding of risks and opportunities streamlining processes,
  48. reducing costs and improving efficiency.
  49. Avoiding being implicated in publicized SG failures such as with
  50. Clicks and Theresa May this tobaccos surrounding the clicks interest
  51. in my advert goes much deeper than just one company.
  52. It goes to the heart of doing business in a
  53. diverse society.
  54. Achieving diversity and equity has to start at the top
  55. in the boardroom and should not just be a line
  56. item on the HR departments employees Bank balance sheet.
  57. Further benefits include allowing companies to compare their performance internally
  58. and externally.
  59. Mitigating negative SG impacts, improving reputation and brand loyalty and
  60. enabling external stakeholders to understand the company's true value.
  61. Yeah, the board's role in understanding Here's Jeanne.
  62. Investors are continuing to expect more and more transparency from
  63. boards in how they oversee particular topics and over SG
  64. oversight is no exception.
  65. Boards confined a number of ways to provide steak holders
  66. or investors with the information they seek.
  67. In a PWC survey, it was found that in 2020
  68. team, just under half of the directors interviewed, 45% said
  69. that s three issues are regular parts of the board's
  70. agenda, up from just 34% in 2019.
  71. Directors are also more likely to say that disclosing a
  72. company's efforts on ears do related issues should be a
  73. priority for management.
  74. Directors are bound by fiduciary duties, which many argue now
  75. extend to considering SG factors when providing oversight of strategy
  76. and risk.
  77. Because SG should align with the company's strategy, the board
  78. will need to understand is to risks and how these
  79. risks are being mitigated.
  80. Boards need to consider, amongst others, the interest of investors,
  81. employees, customers, communities and the economy.
  82. When making critical decisions about incorporating changes that focus on
  83. esteem. Strategic planning meetings must focus part of the board's
  84. time on SG and how they can best oversee it.
  85. It is critical for boards to assess the impact of
  86. SG as it affects the company's relationship with investors, Stakeholders
  87. and the public, in addition is you can have a
  88. substantial impact on the company's reputation.
  89. Addressing SG issues may require boards to develop new processes
  90. and policies on the boards.
  91. Efforts must also extend to implementing changes and overseeing these
  92. changes. Additional training on SG matters will improve the board's
  93. understanding off its duties, assist the board in determining the
  94. restaurant opportunities of SG as well as this is the
  95. boarding. Determining what information should be relayed to key stakeholders.
  96. In summary brought boards will have to oversee strategy, risk
  97. assessment reporting and SG Focus planes.
  98. In conclusion, both can no longer deny the importance of
  99. SG issues.
  100. SG is quickly rising to the top of the boardrooms
  101. again agendas, And not only are investors demanding that more
  102. attention be paid to over SG oversights and disclosure, but
  103. sustainable business practices are increasingly being tired to positive company
  104. performance and reputation.
  105. As investors integrate SG factors into their investment, decision making
  106. companies and specifically, their boards have a crucial role in
  107. identifying and assessing SG issues, risks and opportunities which will
  108. impact their business as well as guiding management.
  109. To allocate the appropriate resource is and attention TSG issues
  110. what will need to be proactive in defining esteem, integrating
  111. esteem to the company's strategy, providing SG oversight and addressing
  112. stakeholder expectations.
  113. Thank you