Strategic Consulting Services

Today’s prevailing corporate responsibility strategies took shape in the final decades of the 20th century. In an age of intense competition, one of the key areas that differentiates companies is the public perception of its value system, which is demonstrated by how it handles its corporate social responsibility (CSR) – areas such as global warming, climate action, sustainability, adherence to diversity and inclusion principles, and building a kind and empathetic corporate image. Its roots go back to the 1950s and 60s and was developed as a way to determine the impact companies have on society. In 2010, the International Organization for Standardization (ISO), an independent nongovernmental organization established to develop a system of industry standards, created ISO 26000 to clarify the meaning of social responsibility and to help businesses translate their principles into actionable insights and provided guidance, not measuring results.

Corporate social responsibility today reflects a global mindset and increased attention on companies by consumers and investors alike, not just around their sustainability and climate action objectives, but also their ethics, how they treat their employees, and how they extend a helping hand to the community. What is now important in this current climate is a way to measure and manage the return on investment (ROI) measurement through the development of new international standards such as SASB (Sustainability Accounting Standards Board), TCFD (Taskforce on Climate-Related Financial Disclosures), and the United Nations (UN) 17 Goals of Sustainable Development, which are based around environmental, social, and governance (ESG) criteria which are now a requirement for financing consideration for impact investors and ESG funds.

QuantaVision understands the history that has led to the development of current global regulations and standards, and we leverage our expertise, network, and resources to support organizations with consulting services for all areas of ESG from planning and research to root cause analysis and implementation guides.

What Is the Difference Between CSR and ESG?

CSR, which stands for “corporate social responsibility,” has been on the business radar for years and refers to “softer,” qualitative issues. As time went by, social issues came into focus and measurement technologies and scientific reporting has also advanced and it now has become possible (and desirable) to quantify a company’s sustainability and societal impact, using metrics that matter to investors.

ESG investors Now Have Deep Pockets

In spite of all of the 2020 challenges that the Covid pandemic brought to the business community, it was a record year for ESG investments. According to Blackrock’s first Global Client Sustainable Investing Survey, $23 billion was invested in ESG companies in 2020, compared to $450 million in 2019. Further, half of the C-suite respondents wished to double their organizations’ exposure to sustainable assets within five years.

Investors Now Have Better Tools to Manage ESG Investments

A wide variety of business services for ESG investors have been created or expanded to measure and manage the evaluation and quantification of ESG data.

Rules of Engagement for ESG

The QuantaVision top five principles below outline our recommended approach to solving the ESG puzzle for any organization.

Ensure that your company’s ESG data and strategy are easy to access and find in one single place on your website. You want to get credit for all of the great work you are doing.

Discuss your ESG positioning internally and develop strategies and written materials to share with your stakeholders. Demonstrate that your company is going the extra mile and that you are planning now and into the future as the ESG
Understand your company’s ESG positioning and how it is being evaluated relative to a peer set. Have a good understanding of what your peers are doing in terms of ESG disclosure and strategy. If you are not at parity, there are probably areas of improvement you can make to elevate your ESG strategy.
Engaging with an ESG ratings agency should be seen as a learning process; ESG ratings have been developed based on interactions with investors and the companies themselves. Understand which ESG ratings are most important to investors and ensure they have the correct data available.
ESG is creating a new language that we all have to learn and somehow develop. Financial markets are fast-moving, and you need to move with them. This is a new language that you must learn and become fluent in to succeed in today’s financial arena.
Impact Investing and ESG Investing Definitions
Term
Definition
Environmental, social, and governance (ESG)
Environmental: A responsible investing factor dealing with climate impact, energy consumption, biodiversity, waste management, and natural resource use.
Social: A responsible investing factor dealing with employee engagement and development, labor relations, human rights practice, product safety, and consumer protection.
Governance: A responsible investing factor dealing with management structure, board accountability and independence, executive compensation, audits and internal controls, and shareholder rights.
Impact investing
Intentionally seeking positive environmental and social outcomes alongside financial returns through investing practices across asset classes. See responsible investing.
Responsible investing
An investment philosophy that incorporates ESG factors into investment analysis, portfolio construction, and ongoing monitoring across asset classes with the objective of enhancing long-term performance, managing risk, and aligning client values.
Socially responsible investing
Originally, a term used interchangeably with ESG investing. Typically, legacy SRI approaches have emphasized exclusionary screening.
Sustainable investing
An umbrella term often used interchangeably with responsible investing. See responsible investing.
CSR versus ESG
Examples of CSR
(Corporate Social Responsibility)
Examples of ESG
(Environmental, Social & Governance)
Telling a story
Providing analytical, actionable data to tell the story
Providing accountability within your organization
Collect, measure, report and manage metrics relevant to your business objectives and your stakeholders
Sustainability
GHG emissions and climate risk
Helping employees advance careers
% of women or people of color (POC) on the board, pay equity, diversity, and inclusion
Participating in fair trade agreements
Not using conflict minerals and slave labor
Donating products or services
Ethical behavior and anti-corruption
QuantaVision thrives on supporting the growth of a Low Carbon Bioeconomy with our suite of high-quality, proprietary ESG tools and services. Accelerate your path to market, project fruition, and successful financing results by leveraging our experience and flexible fee schedules (retainer, per-project, or hourly).
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