If you are a Fundraiser or work in Fund-raising for one Project or for an Institution or Organization, today, more than ever, it is essential to know what it means ESG acronyms that integrate words Environmental (Environment), Social (Social) It is Governance (Corporate governance).

Soon Below we extract a detailed explanation from the Iberdrola website, which aims to clarify the topic.

In any case, the purpose of this post is to present a Deloitte Company Report. A Deloitte is a leader in Audit, Consultancy, Financial advisory, Risk Advisory, Tax Consulting and related services. With more than 177 years of work history and commitment to making a difference, our organization has grown in scale and diversity — there are around 345,000 people in more than 150 countries working to deliver these services — but our culture and values remain solid. Our organization serves four out of every five Fortune Global 500® companies.

And we present Soon below one Deloitte Research transformed into Report on a range of topics related to ESG, and in this report the opinion of 300 senior accounting, finance, legal and Sustainability About the subject. A Deloitte commissioned an online survey in the fourth quarter of 2021 with 300 executives in finance, accounting, Sustainability and legal. “Executives” are defined as senior finance and accounting executives with a minimum seniority of director or chief risk officer, general counsel, general counsel, and chief information officer. Sustainability. Respondents reflect a representation of publicly traded companies in the USA across multiple industries with revenue exceeding US$ 500 million (75% of respondents represented companies with revenue exceeding US$ 1 billion).

This Report was translated by the Google Translate translation engine, so it is important to take care with the content analysis.

For you fundraising with for-profit companies, one of the most promising approaches in terms of strategies is to address the issue of Corporate social responsibility and along with it, the need for every company that is serious and concerned about meeting global goals in relation to ESG have.

A ESG has become a strategic approach and analysis widely used by institutional investors to evaluate performance in Sustainability of a Company.

Therefore, when raising funds from large companies or large national or international conglomerates, perhaps one of the most efficient strategies is to Social responsability.

That's why it's a lot, but it's really important, as you Fundraiser be aware of this topic and do your homework by studying, analyzing, evaluating and converging part of your strategic effort to understand how companies are dealing with this issue and how this can become a differentiator in your fundraising model.

ESG – What it is and How It Works

Corporate Social Responsibility (CSR) is a priority for companies that are truly committed to the communities where they are present. In the midst of the climate crisis, worsened by the COVID-19 pandemic, your contribution will be fundamental to achieving a green recovery that promotes sustainable economic growth, accelerating the transition towards decarbonized societies. In this sense, the ESG criteria, which include indicators related to the environment, society and Corporate governance are essential when making Investments more responsible with the planet.

ESG criteria allow companies to make Investments socially responsible.

WHAT IS ESG

The ESG concept integrates the words Environmental, Social and Governance.Corporate governance), grouping the most relevant non-financial factors of a company into these three axes. It is a strategic and analytical approach widely used by analysts and institutional investors to evaluate performance in Sustainability. In fact, according to Janus Henderson Investors, a British global asset management company, the initial three “are currently the cornerstone of sustainable and responsible investment by any company”. Society and Stakeholders increasingly demand more information about the way companies manage issues related to Sustainability.

Iberdrola, leader in ESG know more 

THE ESG CRITERIA

Investing sustainably means including additional aspects to financial ones in investment decision-making, more specifically environmental, social and environmental factors. Corporate governance. Next, based on the report Understanding the Investments according to ESG criteria from S&P Dow Jones Indices, we analyze each of them:

  Environmental

Environmental criteria analyze the contribution and performance of a business in relation to environmental challenges, such as greenhouse gas emissions. greenhouse effect, The biodiversity protection, you water resources or the logging. Therefore, it uses metrics to evaluate the environmental impact of companies and their efforts to reduce them.

  Social

Social criteria evaluate the relationship between companies and their social environment — workers, local communities and citizens in general — considering aspects such as employment, health, safety, diversity, etc. It reflects, to a large extent, the company's corporate values and strengthens the ties established with communities.

  Corporate governance

The criteria for Corporate governance They are related to corporate governance mechanisms, shareholder rights and the responsibilities of the executive board. They analyze companies' decision-making procedures, their organizational structure, control mechanisms and compliance systems, among others.

ENVIRONMENTAL GOVERNANCE AND SOCIAL ESG

A management approach that integrates CSR means a different way of running companies, because it seeks create shared value for all your stakeholders, as well as considering the Sustainability of business models. The current context, with the climate changes as the main challenge, this approach becomes more necessary than ever. The acronym ESG renews and updates the concept of CSR and organizes the most relevant factors around three axes, establishing a series of criteria that define what responsible and sustainable investment is.

The most widespread opinion about the relevance of ESG factors points to the conviction that Companies are more likely to be successful and generate excellent returns if they create value for all their Stakeholders. “We consider that a well-managed and responsible company, which cares about its employees, customers and the environment, is more likely to better resist and outperform its competitors. ESG analysis offers valuable perspectives on factors that can have a significant impact on a company's financial values and therefore helps to better inform investment decisions”, indicates the company Janus Henderson Investors.

What is a Socially Responsible Investment (SRI)

It is a type of investment that considers ESG criteria to select financial assets Object of investment. The reasons range from the commitment to promoting certain social reforms, such as decarbonization from the economy or diversity and inclusion, to the conviction that a company with good ESG performance will offer better profitability in the long term. In other words, it is the investment that contributes to the Sustainable development, defined for the first time in 1987 by the United Nations as that which meets the needs of the present without compromising the needs of future generations.

What are the ESG principles?

  SEE INFOGRAPHIC: What are the ESG principles? [PDF]External link, opens in new window.

WHAT ARE THE ESG PRINCIPLES?

Environmental:

• Climate change and emissions reduction
• Rational use of water
• Biodiversity
• Energy efficiency
• Reforestation
• Waste Management
• Circular economy

Social:

• Customer satisfaction
• Gender equality and diversity
• Support for vulnerable social groups and social aid
• Health and safety
• Contributions to the community
• Training
• Human rights

Governance:

• System of Corporate governance
• Remuneration
• Cybersecurity
• Responsible supply chain
• Compliance system

THE OPPORTUNITIES THAT OFFERS Investments ESG

In 2008, the World Bank issued the first green bonus of history. In its first decade of existence, this new instrument mobilized more than 500 billion dollars for investmentsExternal link, opens in new window. focused on the development of renewable energy It is energy efficiency, sustainable mobility, Sustainable Agriculture and land uses, forests and ecological resources, water supply and wastewater management, sustainable infrastructures and solid waste management, such as technological waste. And so on, because socially responsible investing is an unstoppable trend that translates into enormous opportunities for the planet:

• Fighting climate change by reducing carbon footprint by companies and better use of natural resources.
• Encouraging research by promoting projects that benefit society, such as cancer research or support for the most vulnerable social groups.
• Development of new technologies with a positive impact on society, such as those that allow more sustainable buildings or smart grids.
• Boosting social improvements related to education, health, equality, integration or diversity.

Success in your Fundraising