Volume 2: Issue 4

In previous briefs, we have reviewed governance and goal setting. This week we explore how we look at our decision systems and which investments to make from these goals and systems. We believe there are 5 primary roles for CFOs:

First, there are over 20 well known ERP vendors and over 40 ESG reporting vendors in the market today. Safe to say, there are many to choose from. G2Crowd is an excellent way to see how community members (customers) rate the various vendors. Given that every industry has different operating parameters, you must select the vendor that best fits the particulars of your industry. Note: Keep in mind that a systems solution must include integrated inputs, operating decisioning, and outputs.

 

Now we are at step 3: Investment decision-making (within the context of your goal setting). The most important thing to realize at the outset is that you can never start with perfection. Perfection is the enemy of good. And, as Tom Chi from At One Ventures likes to say, “Knowing is the enemy of learning.” The best first step is simply to begin. Begin by establishing a triaged view of your business in terms of ESG requirements and then consider where you will get the biggest bang for your buck. Do not overthink this aspect. Be comprehensive and thorough, but it is better to start small and learn as you go than wait two years to get it right. 

 

Next, take the long-term view. If you think about how these investments will affect EPS over the next 1 to 3 years then you will never make these investments. Humanity created a long-term systemic problem that will take decades to correct.

 

Furthermore, ESG investments are not only environmental. They are often found in your human resources L&D budgets applied to your employees. This enhances your business’ social scale and increases the overall business capabilities by training and educating your employees.

 

Last, the brands that invest in these areas today are likely going to be the brands that win in the future. The sentiments of today’s younger generations are not like the Boomers or the Gen Xers. The Millennials and Gen Zers look to brands that are helping them be at one with nature. Invest in your company’s future.

We will cover this topic (Pillar 3 of our framework) in depth during our workshops at the Integrate 22 Conference, November 29, 30 & December 1st at Fordham University in New York City.

 

 

 

 

Anna Murray is Global Head of ESG for SLC Management, overseeing the firm’s Sustainable Investing team to integrate ESG risk management and value creation practices into investment decisions and management. This includes building SLC’s ESG platform to enhance ESG data management, integration, target setting, investment solutions and engagement. 

 

She continues her work with SLC Management's real estate investment manager, BentallGreenOak and also works closely with the SLC Management companies’ InfraRed Capital Partners and Crescent Capital Group. 

 

Prior to joining SLC, Anna spent her career advancing corporate strategy around the globe at major multinationals. Anna is Co-Chair of the Principles of Responsible Investment (PRI) Real Estate Advisory Committee, Founder of the non-profit Young Women in Energy, Board member of the Canadian Green Building Association (CAGBC) and Co-Chair of the Environmental Committee at the Pension Real Estate Association (PREA). 

 

Notable accolades include: Canada's Top 40 Under 40, Top 100 Women in Canada, Canada's Clean50 and the Making a Difference for Women Award, and Clean50. Anna has an MBA and a law degree with a focus on environmental justice and sustainability.

The importance of ESG performance is increasing due to new regulatory requirements, an evolving ESG reporting landscape, shifting stakeholder expectations and pressure from investors. Demand for ESG reporting is growing due to increased scrutiny from stakeholders, including investors who are looking for environmental, social and governance (ESG) disclosures to steer their investment decision-making. 

 

To learn more about EY’s ESG capabilities, please click here. 

 

Thank you to EY for helping us put on this great event.