ESG Global Advisors Inc.

A coalition of leading Canadian pension funds that collectively manage over $2 trillion in assets has submitted a letter to the Canadian Sustainability Standards Board (CSSB) recommending that it reconsider proposed exemptions for sustainability reporting given global and domestic investors’ expectations. The letter emphasizes the coalition’s strong support for adopting the International Sustainability Standards Board (ISSB) Sustainability Disclosure Standards as proposed and underscores their view that adhering to existing ISSB guidelines supports consistency in reporting and investor confidence. The letter is signed by representatives from the following major pension funds: BCI Caisse de dépôt et placement du Québec (CDPQ) CPP Investments | Investissements RPC HOOPP (Healthcare of Ontario Pension Plan) OMERS Ontario Teachers' Pension Plan PSP Investments University Pension Plan Ontario Interested in reading the letter? Access it here: https://lnkd.in/eDEH4Y7w

🌱🌎🏛️ On June 5th, ESG Global's CEO, Sarah Keyes, FCPA, FCA, contributed to The World Federation of Exchanges' Global Meeting on Sustainability. A key focus of the event was to discuss the ESG issues within the exchange and market infrastructure space, with an emphasis on how the industry will meet the challenges of financing the green transition. As part of a panel that looked at ESG reporting regimes for SMEs, Sarah highlighted the implications of putting a high regulatory burden on SMEs, while emphasizing the fact that SMEs are major contributors to the Canadian economy. Sarah noted that ESG reporting is a performance issue, not just a regulatory issue, and that the cost of inaction needs to be balanced with burden of reporting.

When responding to evolving ESG reporting expectations, including mandatory disclosure requirements, it is important to understand what is driving the demand for sustainability information. A key point is that emerging regulation related to ESG reporting is being driven by investors who are looking for consistent, reliable and decision-useful sustainability information to inform their investment and financing strategies. The investor demand for high quality sustainability information is well illustrated by a recent Call to Action published by the Principles for Responsible Investment (PRI) with the London Stock Exchange Group (LSEG), the UN Sustainable Stock Exchanges Initiative and the World Business Council for Sustainable Development (WBCSD). This document calls for regulatory adoption of the International Sustainability Standards Board’s (ISSB) standards – IFRS S1 and IFRS S2 – on an economy-wide basis by 2025. Notably, the statement was endorsed by 121 investors, companies, and other organizations across various sizes and geographies, reflecting widespread support for the adoption of the ISSB standards. Learn more here: https://lnkd.in/ejP83RN8

It's never too early to start developing an #ESG strategy - particularly for companies seeking to do M&A transactions!    ESG has emerged as table stakes for assessing company value in these types of transactions, with more than 70% of M&A leaders reporting abandoning potential acquisitions over ESG concerns, and a vast majority saying they would be willing to pay more for targets with strong ESG attributes, as confirmed by a new survey released by Deloitte. Other key findings from the survey include:   The Growing Influence of ESG on Dealmaking Decisions: 72% of respondents reported that they have decided not to proceed with a potential acquisition due to concerns about the target’s ESG profile, up from less than half of respondents in 2022. These results were mirrored by respondents on the sell-side of transactions, with 66% reporting that they have been forced to abandon a divestiture for ESG-related reasons, compared with 33% in the 2022 survey.   The Growing Influence of ESG factors on M&A Valuation: 83% of respondents reported that they would be willing to pay a premium of at least 3% for an asset with a high ESG profile, or one that improves their organization’s ESG profile, compared to only 62% in the 2022 survey, and only 1% said that they would not pay any premium for a high ESG profile, compared to 8% who reported this in the prior survey. Additionally, 67% said that they would seek a discount of at least 3% due to a negative ESG profile, up significantly from only 27% in the prior survey. Interested in reviewing the survey results? Access the Deloitte report here: https://lnkd.in/dTAm35Z5

ESG Global has been working hard at helping our clients respond to evolving ESG reporting expectations. In a significant milestone towards the establishment of the global baseline of sustainability disclosures for capital markets, the IFRS Foundation confirmed that jurisdictions representing over half the global economy by gross domestic product (GDP) have announced steps to use the International Sustainability Standards Board’s (ISSB) Standards or to fully align their sustainability disclosure standards with those of the ISSB. These are important developments to monitor as companies seek to develop a strategic approach to ESG reporting and disclosure and position themselves to respond to evolving ESG reporting expectations, including mandatory disclosure requirements. Learn more here: https://lnkd.in/eXyXFSZX #ESG #ESGStrategy #ISSBStandards

ESG Global Advisors is thrilled to welcome our newest team member, Jorie Daymond! Jorie is joining the ESG Global team as Operations Administrator. An administrative professional with 4 years experience, Jorie specializes in streamlining processes and optimizing workflows for clients and her teammates. Please join us in welcoming Jorie to the team!

There is growing recognition from companies that #ESG and #Sustainability unlock value creation opportunities with real financial implications in the short, medium and long term. As passionate pragmatists that advise companies, we at ESG Global Advisors Inc. agree!    A recent “Sustainable Signals” survey report by the Morgan Stanley Institute for Sustainable Investing finds that companies are increasingly viewing sustainability as a value creation opportunity. Key findings from the report include: Financing Sustainability Strategies: Respondents indicate that access to capital is vital, with 84% noting support from investors is important to execute their sustainability strategies. 76% believe that sustainability measures could drive a lower cost of equity and/or debt for their company over the next five years. Only 42% say they are meeting or exceeding expectations around aligning corporate financing with their sustainability strategy. Integration of Sustainability into Business Decisions: Most companies (55%) indicate that their key business functions – including capital expenditures, research and development, new products and mergers and acquisitions – are subject to sustainability criteria. However, just over one third agreed that their company’s board has sustainability expertise. The most cited shortfall in board expertise is around sustainability-related regulations (57%). Impact of Climate Change on Business: Nearly all respondents (92%) expect climate change to impact their business model by 2050, with 23% noting that it already has made an impact. This puts climate on par with more traditional business risks including technological change, competitor actions, geopolitical conflict, and supply chain instability. Read the full report here: https://lnkd.in/edGj97vf

It is not too late to comply with Canada’s Modern Slavery Act. The deadline of May 31st, 2024, is fast approaching and ESG Global Advisors has the experience to help companies comply with the reporting requirements, which includes drafting report content and providing support with completing the required online questionnaire.   Additionally, ESG Global Advisors can support companies with supply chain strategy development to further improve 2025 reporting and ensure alignment with ESG and business strategy.   Please feel free to reach out to ESG Global’s Principal, Alison Joutsi, at alison@esgglobaladvisors.com for further questions or support!

ESG Global is delighted to announce that our CEO Sarah Keyes, FCPA, FCA is the Chair of CPA Ontario’s new Sustainability Strategic Advisory Committee! The Sustainability Strategic Advisory Committee has been established to provide input to CPA Ontario on sustainability emerging issues, thought leadership, sustainability related standards, how to support CPAs on sustainability matters and input on the direction and format of professional development resources.

Congratulations to our client 407 ETR on the release of their 2023 ESG Report! We celebrate 407 ETR’s excellent progress in “Steering the Way” towards more sustainable business practices. We are proud to play a part in 407 ETR’s strategic ESG journey and believe the 2023 ESG Report showcases their unwavering commitment to driving value for employees, customers, suppliers, stakeholders and shareholders. #SASB #TCFD #ESGreporting #ESGstrategy