Busy Summer 2020 for the World of ESG Players – Rating Agencies, Information Providers, UNGC & the SDGs…and More.

It’s been a very busy summer for organizations managing corporate reporting frameworks and standards, for ESG rating agencies, and for multilateral agencies focused on corporate sustainability and responsibility. If you are a corporate manager or a sustainable investment professional, do tune in to some of the changes that will affect your work. Here’s a quick summary:

ISS/Institutional Shareholder Services
For four decades, ISS has been the go-to source on governance issues for proxy voting and corporate engagement guidance for major fiduciaries (pension funds are an example). Two years ago, “E” and “S” ratings were added for investor-clients. Now, ISS ESG (ISS’s responsible investing unit) is providing “best-in-class fund ratings” that assess the ESG performance of 20,000 firms. Funds will be rated 1-to-5 (bottom is 1) – this to be a broad utility resource for investment professionals. And for corporate managers – ISS ESG scores along with those of other ESG ratings agencies are a factor in whether your company is included in funds that are being rated.

Bloomberg LP
It’s launching E, S & G scores for thousands of firms (highlighting environmental and societal risks that are material to a sector). First sector up is Oil & Gas, with 252 firms rated. Also, there are new Board Composition scores, with Bloomberg assessing how well a board is positioned to respond to certain G issues. (Note that 4,300 companies are being rated – probably including yours if you are a publicly-traded entity.)

And in other news:

UN Global Compact and the SDGs
The UNGC observes its 20th anniversary and in its latest survey of companies, the organization asked about the SDGs and corporate perspectives of the 17 goals and 169 targets. The findings are in the blog post for you.

MSCI
This major ESG ratings agency expanded its model for evaluating company-level alignment to the Sustainable Development Goals. New tools will help capital markets players to enhance or develop ESG-themed investment services and products.

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Climate Disclosure Standards Board
The CDSB Framework for climate-related disclosure is now available for corporate reporters to build “material, climate-related information” in mainstream documents (like the 10-k). This is similar to what the TCFD is recommending for corporate disclosure.

This is a small part of what has been going on this summer. We have the two top stories about ISS and Bloomberg and a whole lot more for you in the G&A Sustainability Update blog.

For your end-of-summer/get-ready-for-a-busy-fall schedule!

Top Stories

• Bloomberg Launches Proprietary ESG Scores (Source: PR Newswire) 
• ISS Unveils Innovative & Comprehensive ESG Fund Ratings Solution (Source: ISS)

The G&A Blog with many more organizations and their actions here.

Sustainability Standard Setters & Policy Makers
SEC, SASB, GRI, IIRC, FSB-TCFD

• Climate-Related Disclosure is a Catalyst for Stronger Business Performance (Source: SASB)
• Charter for Sustainability Action in South Asia (Source: GRI)
• New Organic Certification Will Help Shoppers Choose Sustainable Products (Source: Treehugger)

MORE Sustainability Standard Setters & Policy Makers

ESG / Sustainable & Responsible Investment
Asset Owners & Managers, Ratings Agencies

• Institutional Investors say COVID-19 Pushed ESG to Forefront (Source: Financial Management Magazine)
• Sustainability-Linked Bonds: The New Face of Transition Finance (Source: JD Supra)
• Investors Expect and Demand Meaningful Environmental Goals and Progress (Source: GRESB)

MORE ESG / Sustainable & Responsible Investment

Corporate Sustainability / ESG
Disclosure, Reporting, Corporate Initiatives

There may be significant disruptions to the domestic and global economies due to the coronavirus, economic slowdown, and public protests – but the corporate sector continues to move forward in companies’ respective sustainability journeys. We are thankful for silver linings in days of dark clouds.

• Corporate Sustainability Reporting is Growing Up (Source: Bloomberg)
• Tiffany, Unilever Create New Standards for Supply Chain Transparency (Source: Sustainable Brands)
• As COVID-19 Further Exposes Global Challenges, These Companies Lead on Sustainability (Source: TriplePundit)

MORE Corporate Sustainability / ESG

Stakeholders That Matter
Developments, Trends, Corporate Actions Affecting Stakeholders

Yes, public sector policy decisions can be disruptive (as we prepare this, the Trump Administration is opening Alaska lands for fossil fuel extraction) – but there are other sectors of the economy that can make a difference in our lives. Here’s news about that:

• The Year of COVID-19 Crisis: How Do We Achieve Sustainable Development Goals by 2030? (Source: Yahoo! Finance
• Respecting the Rights of Vulnerable Groups (Source: BSR)
• Unlocking the Online Retail Opportunity with European Farmers (Source: McKinsey)

MORE Stakeholders That Matter

Sustainability Data in Focus
Developments in Data, Research Trends

• The Sustainable Insurance Forum (SIF) Has Published its Half-Yearly Update Report (Source: Hogan Lovells)
• Digitizing Sustainability Will Help ‘Sustain’ The Corporate Agenda (Source: Forbes)
• Engaging Team Dow: The Far-Reaching Impact of Embedding Sustainability Into Our Culture (Source: CSRwire)
• Will Infrastructure Bend or Break Under Climate Stress? (Source: McKinsey)

MORE Sustainability Data That Matters

Global Sustainability : Forward Momentum!
News & Developments of Note

• Human Consumption of the Earth’s Resources Declined in 2020 (Source: The Guardian)
• UN Global Compact Creates Business Guide to Support Beirut Explosions Recovery Efforts (Source: UNGC)

Editors’ Note
For years this has been a section for focus on the progress that we see in the corporate sector, investment community, public sector, NGOs, regulators, and more. This issue we share the shortfall in the momentum with the U.S. Department of Labor putting the foot on the neck of fiduciaries using ESG approaches; and, the northern ice fields continuing to melt, adding momentum to the wrong kind of climate change.

• Investor Organizations and Financial Industry Firms’ Analysis of Public Comments on Department of Labor ESG Proposal Shows Landslide of Opposition (Source: Ceres)
• Return to Rapid Ice Loss in Greenland and Record Loss in 2019 Detected by the GRACE-FO Satellites (Source: Nature.com)

MORE Global Sustainability : Forward Momentum!

The Sustainability Highlights

Governance & Accountability Instiute is the “Sustainability Headquarters™” for clients in the corporate, investment, public and social sectors. Based in New York, G&A is a for-profit consulting organization providing a range of value-added strategies, services and resources related to ESG & sustainability to clients in the corporate and capital markets communities. For G&A’s full range of services, click on each of the links: Sustainability / ESG Consulting Services, Communications & Recognition Services, Investor Relation Services. For more information, visit www.ga-institute.com or contact us at 646.430.8230 or info@ga-institute.com.