Hope you are doing well. Welcome back to our brief thoughts on ESG.
This week we looked into a study conducted by McKinsey that shows that a considerable segment of the investment community wants to see more tangible links between ESG development and financial performance. Here are some key takeaways and recommendations we want to share with you on integrating corporate ESG strategies into equity stories:
“While more than 95 percent of S&P 500 companies issue a sustainability report, very few fully integrate environmental, social, and governance (ESG) into their equity stories.”
Reporting comprehensive, quantitative, and actionable information is a best practice. But for investors to fully value and incorporate this information into their models, it is helpful to show how the efforts that are portrayed in that information help your business be more profitable, grow faster, or protect it.
“Investors find that excellence in different pillars is required based on a company’s sector.”
Your business doesn’t have the same concerns and opportunities as your competitors’ (even close competitors). Sticking to what’s most important to you and your stakeholders is key if you want to be able to optimize your impact.
“An effective equity story improves investor understanding of how the company is using ESG to raise the odds for outperformance and address risk.”
Make sure that your investors have visibility on how your ESG strategy plays and important role in building your resilience and adaptability as you move forward. Describe how your sustainability plans will have an impact on growth, cash flow, returns, margins, and brand enhancement among its peers.
“A significant majority of chief investment officers are prepared to pay a premium for companies that show a clear link between their ESG efforts and financial performance.”
We believe over time this will only be more and more relevant (despite all the criticism ESG gets). But as with other things, structuring a best-in-class strategy is only part of the equation; you also need to be able to communicate it properly.
I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.
Best,
Marimar
CEO, Miranda ESG
Contacts at Miranda Partners
Damian Fraser
Miranda Partners
damian.fraser@miranda-partners.com
Marimar Torreblanca
Miranda-ESG
marimar.torreblanca@miranda-partners.com
Espero que este correo te encuentre bien y bienvenido de nuevo a nuestros pensamientos sobre ESG.
Esta semana analizamos un estudio recientemente publicado por McKinsey que demuestra que un segmento considerable de la comunidad de inversionistas quiere ver vínculos más tangibles entre el desarrollo ESG y los resultados financieros. Aquí tenemos algunos puntos clave y recomendaciones que queremos compartir sobre la integración de las estrategias corporativas ESG en las historias de renta variable:
“While more than 95 percent of S&P 500 companies issue a sustainability report, very few fully integrate environmental, social, and governance (ESG) into their equity stories.”
Reportar información exhaustiva, cuantitativa y práctica es una mejor práctica. Pero para que los inversionistas valoren plenamente e incorporen esta información a sus modelos, es útil mostrar cómo los esfuerzos sostenibles ayudan a tu empresa a ser más rentable, a crecer más rápido o a protegerla.
“Investors find that excellence in different pillars is required based on a company’s sector.”
Tu negocio no tiene las mismas preocupaciones y oportunidades que el de tus competidores (ni siquiera los más cercanos). Apegarte a lo que es más importante para ti y tus grupos de interés es clave si quieres ser capaz de optimizar tu impacto.
“An effective equity story improves investor understanding of how the company is using ESG to raise the odds for outperformance and address risk.
Asegúrate de que tus inversionistas tengan visibilidad sobre cómo tu estrategia ESG desempeña un papel importante en el desarrollo de tu resiliencia y adaptabilidad conforme van avanzando. Describe cómo sus planes de sostenibilidad repercutirán en el crecimiento, el flujo de caja, los beneficios, los márgenes y la mejora de la marca entre sus competidores.
“A significant majority of chief investment officers are prepared to pay a premium for companies that show a clear link between their ESG efforts and financial performance.”
Creemos que con el tiempo esto será cada vez más relevante (a pesar de todas las críticas que recibe ESG). Pero, como ocurre con otras cosas, estructurar una estrategia que sea best-in-class es sólo una parte de la ecuación; también hay que ser capaz de comunicarla adecuadamente.
Espero que esto te haya parecido interesante. Como siempre, si hay algo en lo que pudiéramos ayudar, o si hay un tema de ESG del cual quisieras saber más, por favor háznoslo saber.
Saludos,
Marimar
CEO, Miranda ESG
Contactos en Miranda Partners
Damian Fraser
Miranda Partners
damian.fraser@miranda-partners.com
Marimar Torreblanca
Miranda-ESG
marimar.torreblanca@miranda-partners.com
