Sphera’s ESG Virtual Summit: Day 1 Roundup

The first day of Sphera’s ESG Virtual Summit was centered around the theme of Integrated ESG. Read on for the key takeaways from today’s sessions.

Keynote:?The Importance of ESG Strategy

Paul Marushka, president & CEO at Sphera, kicked off the ESG Summit by addressing the importance of ESG strategy.

Here is what we learned:

• The transition to mandatory ESG reporting is happening now. This will change how companies track and measure their ESG performance.
• ESG reporting is becoming more standardized, but we have a long way to go before it’s in line with financial reporting standards.
• Stakeholders now expect ESG reporting to be operationalized, and data will need to be transparent and auditable. Companies can optimize ESG performance through the right software, data and consulting.?

Investing in the Future

Next, Nicolas Bourdier, partner at PWC; Elizabeth Lewis, managing director and deputy head of ESG at Blackstone; and Sandy Smith, VP of EMEA/APAC EHS&S sales at Sphera, discussed which ESG criteria private equity companies and investors are applying in their assessments.?The key takeaways from that panel discussion include:

• ESG has become mainstream over the past few years due to increased evidence that ESG factors create value for companies and investors when integrated into businesses.
• Four main drivers are bringing ESG to the forefront: the regulatory landscape, pressure from investors, client expectations and public opinion on companies’ sustainability performance.?
• Investors are looking for value creation in the short term; however, sustainability is a transformational journey, and long-term sustainability should always be a consideration. Companies have the tools today to make meaningful progress and will need to scale their efforts in the coming years to reduce carbon emissions to reach net zero by 2050.

How to Begin Your ESG Journey

Phillippe Guillard, VP of global solutions at Sphera; Sean Daley, director of consulting services at Sphera; and Xavier Stiffel, senior solution engineer at Sphera, closed the day with a discussion on what companies must do to build an ESG strategy that supports their efforts to reduce risk and enhance brand reputation. Here are some key takeaways:

• Companies can start their ESG journey by getting buy-in from senior leadership and conducting a materiality assessment. Frameworks and guidance from organizations like the Sustainability Accounting Standards Board (SASB) can help determine which KPIs to focus on.
• Even if companies don’t have an official ESG reporting framework in place, they may already be tracking the data needed for ESG reporting and can use that as a starting point. For example, human resources may already be tracking diversity, equity and inclusion (DEI) information; a company’s environmental health and safety department may already be tracking incidents; and the IT department may be tracking privacy and data security.
• One of the common pitfalls that many companies experience over the course of their ESG journey is focusing solely on the “E” in ESG. Companies shouldn’t let their governance processes fall by the wayside. Governance is essential to ensuring that internal processes are aligned with ESG goals. The “E” and the “S” can only be considered if the “G” exists.?

We enjoyed the first day of the ESG Virtual Summit and hope you will join us for Day Two on June 22 to learn about addressing ESG challenges! For more information on the summit: https://bit.ly/3LlPL3A

#ESG #sustainability #climatechange