Is the harmonization of ESG standards and frameworks desirable, practical or possible? Is it what companies and capital markets need to accelerate progress? How can companies and investors better understand the strategic fit, alignment and differences at a practical level? There is a proliferation of sustainability reporting standards and frameworks to choose from, causing confusion in the marketplace. Is this material – or is it a matter of finding the right tool to solve the right problem? How can companies learn about the objectives of each reporting organization? Come learn about the move towards alignment and dispel the myths of ‘disharmonization’.

1. www.erm.com
The ESG Standards Revolution

2. www.erm.com
Investor Coalitions and Networks (50+ Years)
1972
$400 billion
2001
$20 trillion
2000
$100 trillion
2003
$25 trillion
2006
$80 trillion
2013
$4 trillion
2015
$86.2 trillion
2017
$13 trillion
Copyright @ 2020

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RiskMetrics
Group buys
Innovest
FEB 2009
Thomson Reuters
buys Asset 4
NOV 2009
Bloomberg
buys New Energy
Finance
DEC 2009
GMI and
The Corporate
Library merge
JUL 2010
Vigeo and
EIRIS
merge
OCT 2015
MSCI acquires
GMI Ratings
JUN 2014
ISS buys IW
Financial
JAN 2017
Morningstar
buys 40% of
Sustainalytics
JUL 2017
SEP 2009
Sustainalytics and
Jantzi Research
Inc. merge
NOV 2009
RiskMetrics
Group buys KLD
MAR 2010
MSCI buys
RiskMetrics
Group
JUN 2012
Sustainalytics acquires
Responsible Research
SEP 2015
ISS acquires Ethix
SRI Advisors
OCT 2016
Standard & Poor’s
buys Trucost
JUN 2017
ISS acquires South Pole
Group’s Investment
Climate Data Division
MAR 2018
ISS acquires
oekom research
Sustainalytics
buys certain assets
from Solaron
Sustainability
Services
MAR 2018
APR 2019
Moody’s acquires a
majority stake in
European ESG ratings
firm Vigeo Eiris
Moody’s acquires a
majority stake in
climate data firm
Four Twenty Seven
JUL 2019
SEP 2019
MSCI acquires
environmental fintech
and data analytics firm
Carbon Delta
JAN 2019
Sustainalytics
acquires GES
International
Thomson Reuters
acquires FC
Business
Intelligence, the
parent company of
Ethical Corporation
OCT 2019 RobecoSAM
transfers SAM ESG
Ratings and
Benchmarking to
S&P Global
NOV 2019
ESG Merger & Acquisition Activity (10+ Years)
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2010 2014 2019
2017
Frameworks, Guidelines & Standards (20+ Years)
2016
2015
2012
2011
200520001997 2020
Copyright @ 2020

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Human Capital Investor Perspective
fair labor
practices; health
and safety;
responsible
contracting and
diversity
workforce
demographics;
workforce stability;
workforce
composition;
workforce skills and
capabilities; workforce
culture and
empowerment;
workforce health and
safety; workforce
productivity; human
rights; workforce
compensation and
incentives
total headcount,
“broken down by the
division between full-
time and part-time
employees, gender, and
diversity”; Annual
turnover—including
both planned and
regrettable turnover;
Investment in training,
skills, and professional
development;
Employee engagement
score
gender diversity;
employment type,
such as full-time, part-
time or agency
workers; staff
turnover; accidents,
injuries and workplace
illnesses; investment
in training and
development; pay
ratios between the
highest paid and
median and lowest
quartile workers
across the company;
and employee
engagement scores.
workforce
composition,
unionization, worker
participation in
decision-making,
OHS practices,
training and
development and
employee
compensation
policies.
workforce
composition,
worker welfare,
investment in
skills and worker
representation.
Sources: Corporate Disclosure of Human Capital Metrics. October 2017. Retrieved from: https://lwp.law.harvard.edu/files/lwp/files/pension_paper_corporate_disclosure_of_human_capital_metrics_102317.pdf
CSHS Human Capital Project. http://www.centershs.org/human-capital.php
Managing the ESG Ecosystem 5
2014 2015 2016 2017 2020

6. www.erm.com
The ESG Standards Revolution