ESG is becoming a non-discretionary item for investors when accessing capital and asset valuations. Energy is typically the largest indirect cost most businesses face and is one of the highest cost components in the ESG wheel. It is also the most data intensive element of the Climate Change segment of the wheel.
There are also several regulatory drivers which are increasingly making ESG disclosure mandatory. SECR is currently mandatory for over 12,000 UK businesses and TCFD is expected to become mandatory in 2022.
The Sustainable Financial Disclosure Regulations (SFDR) are also likely to drive reciprocal UK legislation which will lead to more mandatory ESG disclosures.
Businesses will require expertise to help them deliver their net zero and ESG objectives. We manage the data collection, validation and provide the resources for the creation of the disclosures, so that businesses are not distracted from their core operations.
ESG Advisory Committee
As a provider of products and services that support investment funds and corporate businesses, it is important that our ESG solutions remain at the leading edge of thinking, whilst practical to implement and consistent with the investment thesis of our clients.
We have created our own ESG Performance Committee. This is responsible for understanding the risks of climate change and other ESG issues, whilst disseminating ESG responsibility across the business through employee committees.
The Environmental Action Committee, Social Action Committee and Employee Engagement Committee are each made up of different representatives from across the business. Representatives must not be a direct report to an Executive Director and are rotated annually. The role of each committee member is to champion the implementation of the environmental, social and employee welfare initiatives that we undertake and report to the ESG Performance Committee.