Aligning value with values - 15rock
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March 7, 2023
min read

Aligning value with values - 15rock

Learn about the importance of aligning your values with your investments and how 15|Vest can help you create a sustainable.

It's definitely not an exaggeration to say that ESG is going to completely reframe the way we conceptualize value. If we move away from the premise that success is based primarily on financial measures, everything is turned upside down.
Sustainability is becoming the new norm, and investment banks and asset managers are leading the way. ESG refers to a process whereby environmental, social, and governance criteria are integrated into the advisory and investing process.

Today, ESG factors have come to be taken seriously as a whole new convergence of financial value and ethical values offers new routes to achieve business success. ESG is no longer solely about environmental stewardship, corporate governance issues, or social responsibility.

Rather, ESG is about embedding all of these principles, and more, into the strategy, capital allocation, and operations of your company to make sure you, and your customers, are ready for the world of tomorrow.\

ESG will drive the next wave of transformation The COVID-19 pandemic has left us in the middle of a global shift in technology, consumer behavior, politics and the environment. We’re living in an era of growing political polarization and social tension, as well as the climate crisis and an economic shift towards automation.

The ESG landscape has become more polarized, with two-thirds of investors seeing ESG as increasing in importance, up from about half 18 months ago. Yet overall, only about 1-in-10 investors believe their approach to ESG is “highly effective,” which is down from 7 percent in a survey last year.

In a VUCA –volatile, uncertain, complex, ambiguous- world, sustainability in your organization requires enduring relationships, alignment to core values, and continuous transparency to build deeper levels of trust and cooperation.

Define your ESG ambition

We envision a future where ESG is integral part of every company's strategy, operations and decisions. And we believe that together, our community of passionate solvers from strategy, tax, deals, legal, people, assurance, reporting, data and tech can help you stay true to your ESG principles.

No matter which stage you start out on your ESG journey, it will result in changes to all the dimensions of your business. These changes will take effect across the board, including: overall strategy, transformation and reporting for transparency.

Investors and shareholders are expecting companies to go beyond setting ambitious net-zero targets. They're demanding real transition plans, transparent reporting, and increased leadership from the C-suite—and accountability.

These raised expectations mean that companies currently setting, or setting ambitious plans to, become net zero leaders risk losing their leadership position if they don’t take steps now to tackle their decarbonization challenges.

The precise amount of greenhouse gas reduction required varies from organization to organization. Many organizations have interim targets, but others are earlier in the process. They are working to improve their understanding of their own emissions as well as scope 3 emissions from their suppliers, products, services, investments and other elements of their value chain. Meanwhile, some organizations are still in the earliest stages of establishing their greenhouse gas inventories.

Many companies are considering whether their finances will help them shift into renewables and implement more environmentally-friendly business practices in light of the Climate Change (Scotland) Act, which comes into force in April. One way they're doing so is calculating the finance emissions associated with their investments.

Advance on these goals is most effectively achieved through viewing net zero as a key part of an organization’s broader environmental, social and governance (ESG) identity. That identity, which encompasses all aspects of an organization’s business model, will inform the approach used to advance on these goals and the tactics employed to achieve net zero. Organizations will have different starting points on their ESG journey, depending on their mindset and maturity. A critical enabler of ESG integration is examining all dimensions of your business to create a strategy-led plan, transform operating models, and guide the measurement of operational and social impact.

Taking stock of what’s driving your net zero ambitions can help inform your strategy. And a carbon accounting blueprint, guided by building blocks and checklists of key actions, can provide a roadmap for organizations to move from their net zero aspirations to implementation.