Panel 2: Technology to Enable Safety, Human Rights and Environmental Initiatives

TECHNOLOGY, TRANSPARENCY AND TRUST SUMMIT

NOVEMBER 7TH, 1:30 PM, NYC

REGISTER FOR THIS EVENT HERE.

Speakers for the Technology Panel:

MODERATOR: Richard Elder is a financial industry professional with a proven track record in developing and managing Vendor & Third Party Management, Customer Onboarding, Business Control Programs, Process re-engineering and Merger Integrations. He has held senior positions for Citi and JP Morgan Chase covering corporate, investment, credit card, brokerage, commercial and consumer banking operations. Currently Richard is a consultant focusing on Complex Change Management, Business Risk Management and Governance as well as Program and Operations Management. In this spare time he assists with his families  newly launched distillery, ORE 118 the makers of ORE 118 Raw Vegan Gin, the first of it’s kind, being served in such fine New York establishments as Aquavit and Tribeca Grill. He holds an MBA from the Wharton School of the University of Pennsylvania and a BA from the University of Virginia.

Nasser Fattah, Managing Director at the Bank of Tokyo-Mitsubishi UFJ, is an accomplished IT information security executive with extensive experience in the financial and health care insurance sectors. He has built and managed comprehensive, global, cost-effective information security programs, including disaster recovery, that add value to the products and services provided to customers and partners, and align with and support business objectives, growth and regulatory requirements. He has implemented information security cyber risk assessment frameworks, as a first line of defense, that align with organization risk appetite and tolerance, as well as with other risk departments, including Information Risk Management, Privacy, and Compliance. His background includes senior positions at AIG and Broadridge.

Antoine Heuty is the founder and CEO of Ulula – a risk management software and analytics platform to create more transparent and responsible supply chains. Ulula connects with workers and community members to create real-time analytics and direct communication to prevent risks and improve working conditions. He previously held senior positions at the international Natural Resource Governance Institute and the United Nations Development Program (UNDP). He is the co-author of various publications on transparency, mobile technology, social innovation and supply chains. He has graduate degrees from Sciences Po Paris, Oxford and Columbia University.

Vijaydeep Singh, Senior Director at Cap Gemini Financial Services, is a proven leader with successful track record in corporate strategy, planning, influencer marketing, analysis and advisor relations, mergers and acquisitions, post-merger integration, strategic research, analytics, and financial planning. Prior to joining Cap Gemini, he worked in strategy and head influencer relations at IGATE and holds an MBA from ICFAI University Raipur.

ESG Reporting: Using Data Compilation and Analysis to Drive Supply Chain Policies

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VIDEO 2: Reverse Engineering an Effective ESG Supply Chain Policy

 

Hosted by Rosemary Lapka of the GSC and Louis Coppola, GSC Board Member and Co-Founder & Executive VP of the Governance & Accountability Institute (G&A)

This conversation is about how reverse engineering ESG Investor Datasets is an effective tool that can help to inform a strategy to improve your ESG supply chain policy. The work at G&A focuses particularly on providing advice to corporate and investor clients related to ESG sustainability strategy, disclosure/reporting, investment, and performance. Lou Coppola is the Chair of the US SIF- Social Investment Forum – Company Calls Committee (CCC), which serves as a resource to companies by providing a point of contact into the sustainable investment analyst community and is an active NYSSA- New York Society of Securities Analyst, Sustainable Investing Committee steering member.

The G&A Institute was founded 12 years ago with the concept of helping companies do the right thing for the right reasons. They operate at the intersection of ESG issues, the capital markets, and publicly traded companies. With reputations and evaluations being increasingly impacted by ESG factors, G&A helps companies identify material ESG issues and helps companies to proactively measure, manage and disclose on these issues in a standardized way. The G&A Institute serves as the data partner for the Global Reporting Initiative (GRI) in the United States, United Kingdom and The Republic of Ireland. In this role, they collect and analyze every sustainability report published by companies headquartered in these countries and publish reports on reporting trends to create a greater awareness of best practices in sustainability reporting and sustainable investing.  

To identify and extract ESG data points that investors use to assess supply chain, sourcing and procurement policies, G&A conducted a study evaluating the data points collected by 4 respected and often-cited sources that feed the capital market:  Thomson Reuters Eikon ESG Data, Bloomberg ESG Dashboard, MSCI ESG Research, and Sustainalytics ESG Research. What they found was that up to 30% of the data points were inaccurate or incomplete because most of the time, the company itself did not disclose their activities in a standardized or easily accessible format for the analysts at these organizations to identify. This lack of standardized ESG disclosure negatively influences the company’s ESG investor profile. The analyst helps to identify how the capital markets and investors assess company’s supply chain policies and identifies best practices. The primary focus of the study examined the subset of ESG data points related to supply chain procurement, purchasing policies and codes of conduct.  

G&A grouped the various providers ESG Data points and identified 6 key stages of supply chain policy ESG integration:  

Stage 1:  Commitments (Environmental, Social, Governance)

Stage 2:  Target Setting

Stage 3:  Monitoring and Reporting

Stage 4:  Engagement and Training

Stage 5:  Systematic Consideration and Incentivization

Stage 6:  Termination for Non-Compliance

These stages are often done in a continuous cycle. Some of these stages may also overlap.  For example, companies should go back to review their commitments each year and improve them based on engaging with stakeholders, evaluating what has become more important to society and customers, and they may set new targets and expectations.

By including specific language and data identified in each of these categories data points, it will provide a more accurate picture of a company’s policies and practices and make it easier for ESG Data Providers’ analysts to assess the company, leading to improved investor ratings in these areas. This is the information ESG data providers are looking for when they go through CSR or other company reports that is then input into their evaluation databases.  

Human rights and employee safety policies are examples of key data points that are weighted and evaluated based on how they meet recognized standards and conventions as set forth by policy leaders such as the UN’s Sustainability Development Goals and the International Labour Organization (ILO). As a UN agency that sets internationally recognized standards on human rights, the ILO’s 1998 declaration on fundamental principles and rights at work set out 8 core conventions whose principles are binding on all ILO-member states. As several of these minimum labor rights are not currently achieved within international supply chains, especially in the developing world, it’s increasingly common to include codes of conduct based on these ILO minimum standards into contracts with suppliers.  

Click on the video to continue learning more about

  • What information should go into reports and how to standardize that policy language disclosure
  • How to highlight your policies so that your ESG investor data profile is accurate and complete
  • Suggestions on how to implement the 6 stages of supply chain policy ESG integration
  • Other tools and resources that will help companies design world-class ESG supply chain tools policies

For more information about G&A Institute or if you have any questions for Lou, you may reach out to him directly at lcoppola@ga-institute.com or visit their websites:  www.GA-Institute.com  |  www.Accountability-Central.com  |  www.SustainabilityHQ.com

VIDEO 1: The Role of ESG Evaluation & Resources for Successful ESG Practices

 


The Role of ESG Evaluation & Resources for Successful ESG Practices

Hosted by Rosemary Lapka of the GSC and Devon Reichelt of Refinitiv

The following is a summary of the attached video examining what the existing ESG data is telling us about successful supply chain policies & practices and how the role of ESG Evaluation & Resources for Successful ESG Practices is evolving.  It is hosted by Rosemary Lapka of the GSC and Devon Reichelt, Lead Market Specialist for Lipper and ESG at Refinitiv, which was formerly known as the Financial and Risk business of Thomson Reuters. Devon works on a consultative basis with some of the world’s largest asset managers and banks to assist them in understanding capital flows, performance comparables, fee and expense rational, ESG investing, and market sentiment.

Supply chains often make up the majority of a company’s impact on society and the planet. Companies can begin to evaluate and improve the performance of their supply chains through examining ESG factors of their business.  For both financial and market-driven reasons, companies are asking the following questions of themselves and their industries:

  • What resources are available for incorporating ESG evaluations into supply chain activity?
  • How do companies start to design policies that become best practices for responsible supply chains?
  • How does the market evaluate responsible ESG practices?
  • Is there now or will there be a single global set of ESG metrics to evaluate this data?

The answer to that last question is no, there is currently no standardized format.  Which is why the work at Refinitiv is so critical. It assembles the data, analyzes the information, and has developed a structured, weighted format with specific criteria so companies can be compared to each other in a unified set of standards defining their performance on an ESG basis.  This information impacts mutual and pension fund managers who are trying to weed out and guard against investing in any companies that are associated with undesirable business practices such as excessive water use, unfair labor practices, the use of child labor, board and gender equality issues, or any other policy that could be considered detrimental from a social and corporate governance perspective, negatively impacting the performance of their portfolio.  Building that value chain progressed from simply avoiding those companies to seeking out businesses with ESG-friendly products and procedures who were determining what best-practices were in each field, to recognizing that implementing those best-practices led to higher market share and corporate value and were therefore the best investments for their portfolios. We now have companies trying to understand what their peers are doing from an ESG perspective to make sure that they are best-in-class.  

Refinitiv uses at least 178 comparable measures and over 400 different metrics to develop their comprehensive ESG database, which impacts how the global financial community measures ESG performance.  They source data from an ESG content perspective from multiple providers. Some analytical groups are provided information directly from corporations and some scour reports and online sources using artificial intelligence.  But since Refinitiv wants to note the exact resource that has provided that data and reference it, map back to it, they use information that is publicly available; no private information is used. They manually process information on over 7,000 public companies using annual CSR reports, data provided on company websites, NGO websites, exchange filings, and publicly available news sources.  This is then converted into standardized set of data points noting everything from the measured output of CO2 emissions and water usage to “true or false” values recording who has policies on HIV/AIDS, increasing the percentage of women managers, to methods of responsible sourcing.  If vendors make note of how or what a company is doing, both positively or negatively, they will also input that data which can then be authenticated or refuted by the company by clicking on that datapoint in the source document.  This unique way of collecting information allows them to audit this information like a financial statement supporting a more holistic due diligence.

Knowing what and how other companies are reporting this type of ESG information will help standardize and guide what goes into CSR reports and improve data analysis.  For instance, if you have a water reduction policy but don’t note it in your CSR report, it will likely not be calculated into your overall score. And that means that it’s likely that your stakeholders, your customers and your industry don’t know about your conservation and efficiency efforts.   And that can hurt your standing in the market.

The video continues to provide more information on

  • How Refinitiv’s data analysis and model works
  • Scoring methodology and categories
  • Controversies within the categories
  • How to use those scores to improve individual company performance and public perception
  • ESG Global Coverage
  • Seeing the actual platform in use

For more information about Refinitiv or if you have any questions for Devon, you may reach out to him directly at:  Devon.Reichelt@Refinitiv.com or go to their website:  https://www.refinitiv.com/en/

Flagship report from the ILO – International Labour Organization

World Employment and Social Outlook 2018: Greening with jobs

This edition examines environmental sustainability in the world of work. It focuses on how climate change and environmental degradation will impact the labour markets, affecting both the volume and quality of employment, and quantifies the shifts expected to take place within and between sectors.

Originally published by ILO.

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