Transparency in ESG and the Circular Economy: Capturing Opportunities Through Data

The realization that focusing only on profit-seeking practices had human costs that ultimately hindered corporate efficiency led to a notion of corporate responsibility.

The GIIN has developed the tool IRIS+31 to help investors measure and maximize the positive effects of their investments on society and the environment, taking into consideration ESG factors along with traditional financial metrics like risk and return.

ESG criteria set standards for a company’s operations based on how environmentally or socially conscious their operations are. Environmental criteria measure a company’s level of responsibility with respect to the nature and protection of natural ecosystems. Social criteria measure a company’s responsibility with respect to business ecosystems, inc

More recently, the Financial Stability Board (FSB) launched the Task Force for Climate-Related Financial Disclosures, which in 2017 released recommendations to support companies disclosing this information to support capital allocation. These recommendations focus on four themes for organizational operations: governance, strategy, risk management,

One example of organizational structure that specifically focuses on for profit companies’ commitment to sustainability through a standalone certification is the B Corporation. This class of businesses, across sectors and industries, has committed to the integration of profit and purpose within their strategy. The B Corp certification legally requi

The emerging concept of creating shared value (CSV) described in Chapter 1, as a development beyond CSR, is a push to shift CSR practices from being cost centers disconnected from business strategy to becoming a source of profitability through innovation and competitive advantage.

Porter and Kramer discuss several examples of corporations that can analyze their social responsibility opportunities with the same frameworks that guide their core business decisions, and in doing so, have discovered unique market opportunities to capitalize on (e.g., Whole Foods, Toyota, Volvo). These are companies that have integrated ESG concer

Overall, the concept of solidarity with the human community has begun to establish that a business’s reputation for incorruptibility can be a priceless asset. Reputation alone can mark the difference for awarding company contracts, resilience in corporate stock prices, and overall trust from the markets.

Circular Economy This refers to an industrial model that redefines the use of resources in a traditionally take-make-waste industrial model, in order to design waste and pollution out of the system.