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GreenBiz 22: Tutorial - Finding the Story in Your ESG Numbers

This document discusses leveraging an organization's ESG story to build market preference, attract investors, and retain employees. It covers the basics of ESG terminology and standards, gaps that must be addressed to satisfy ratings agencies and stakeholders. It also discusses framing the ESG story for different audiences in a consistent way, including through ESG reporting. The company providing this seminar, Shelton Communication Group, is an expert in sustainability communication and helping organizations gain a sustainable advantage in the market.

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1 + 2/15/22 Finding the story in your ESG numbers How to leverage your ESG story to build market preference, drive sales, attract investors and retain employees Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
2 + What are we up to today? • The ABC’s of ESG — what you need to know about the terminology and standards, the reporting frameworks and the ratings agency game • The watch-outs — the gaps that must be filled and the commitments that must be made to appease ratings agencies and investors, as well as employees and consumers. • Baking sustainability into your brand platform and framing your ESG story at different levels so you can speak to several different audiences in a way they can each understand, while staying consistent — including via your ESG reporting. • Working together to nail down several key takeaways -- like which ESG ratings agencies matter most for your company, the most important “watch-outs” and story elements for your situation, and what your lead message should be. Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
3 + About us Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
4 + Gain a sustainable advantage + 3 Why Shelton Group? ESG Subject Matter Experts • 30 years in business • 16 years exclusively focused on creating a market advantage for organizations working to create a sustainable future Recognized Thought Leaders • 15 years of conducting our own, proprietary Pulse® trending studies regarding U.S. market beliefs and expectations surrounding sustainability issues • Featured speaker at 15-20 industry events annually • 8,000+ subscribers to weekly insights newsletter • Regularly featured in business press Solution Providers • Insight-driven marcomm strategies and campaigns that: - Evoke emotion - Change mindsets - Build brands - Sell products …with no greenwashing! Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
5 Gain a sustainable advantage. Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
6 Gain a sustainable advantage. The company we keep Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
– S&Z North America – Sustainability & ESG Experts • Established 2005 • Exclusive focus on sustainability / ESG management • 25 experts Global Reach • Offices in New York, NY and Hamburg, Germany • Network of partners to deliver projects globally • 660+ projects for more than 190 clients Meeting pressing challenges head-on • Sustainability Strategy, Goals, KPIs • Responsible Sourcing • Reporting, ESG Ratings, Stakeholder Management • Impact Assessment, Metrics and Software Support © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
8 + Strategy & Organization § Vision, strategy, targets § Materiality analysis § Code of conduct § Organization and processes § Supply chain management § Performance management and indicators § Reporting lines § Training Communication Data & IT Management § Stakeholder management (surveys, dialogues, conferences) § Print and online reporting § Assistance in investor ESG communication § Responding to ESG questionnaires § Software selection § Implementation § Training, user support S&Z – Consultants for Corporate Responsibility © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
9 + S&Z Clients © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
10 + Why ESG matters more than ever Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
11 + Let’s start with the people you’re “selling to” End users Employees Prospective Employees Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
12 As part of its ongoing polling of Americans to deeply understand their beliefs and expectations around sustainability, Shelton Group fielded a survey to explore how Americans define good and bad companies and how those perceptions drive purchase decisions. This online survey was fielded December 2020-January 2021 and included a total of 2,000 U.S. respondents. Respondent Demographics The survey sample was stratified to mirror the U.S. population, using quotas for geography, age, gender, education and race; data were weighted slightly to match U.S. population distributions. The margin of error is +/- 3.1%. Methodology Gain a sustainable advantage. sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
13 Gain a sustainable advantage. What’s a “Good Company or Brand?” sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
14 Source: Good Company Name three companies or brands that you consider to be “good.” It’s up to you to decide on what your meaning of “good” is. n=2,000 Here’s what Americans think *Brands shown had 5 or more mentions sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
15 And here’s why: Source: Good Company Why do you think this is a good company? n=1,686 23% of those surveyed chose ESG-related answers 2% 2% 3% 3% 3% 3% 3% 4% 4% 4% 5% 5% 6% 6% 6% 7% 7% 8% 14% 18% 20% 21% 26% 51% Diversity/inclusion Healthy/organic/vegan products Successful/profitable/popular Value Trustworthy/fair Convenient Fun/cool/friendly Handled covid well Discounts/deals/sales Stands up for something/good values Longstanding/reputable Charitable activities/give back Care about environment/the world No good companies/None/NA Innovative/unique Community-focused/give to community/help people Reliable/honest Takes care of employees/creates jobs Variety/availability/has what I need Quality Price Good/all/everything/amazing Customer service Good/best version of the product they sell 23% of those surveyed chose ESG-related answers sshelton@sheltongrp.com • 865-524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
16 Gain a sustainable advantage. So then, what’s a “Bad Company or Brand?” Gain a sustainable advantage. sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
17 Gain a sustainable advantage. Source: Good Company Name three companies or brands that you consider to be “bad.” It’s up to you to decide on what your meaning of “bad” is. n=2,000 Here’s what Americans think *Brands shown had 5 or more mentions sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
18 Gain a sustainable advantage. 4% 4% 4% 5% 5% 5% 6% 6% 6% 7% 7% 7% 9% 10% 12% 13% 14% 14% 16% 18% 24% Have too much power/monopoly Censorship/they censor people Unreliable products/service Poor policies/business tactics Security/privacy concerns/data issues Greedy/only focused on money Poor leadership Don't know Harmful to the environment Promotes misinformation/doesn't correct lies Don't like/just my opinion/bad Food/drink is bad I disagree with their social issues/stance/values Corrupt/criminal/crooked/fraud/scandals Poor quality/cheap Products are harmful/unhealthy Treats employees poorly Dislike the products/brand Cannot trust/deceptive/dishonest/manipulative Too expensive Bad service And here’s why: 31% of those surveyed chose ESG-related answers Source: Good Company Why do you think this is a bad company? n=1,326 sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
19 Gain a sustainable advantage. So what does Good vs. Bad have to do with driving purchase? Gain a sustainable advantage. sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
20 42% want to be seen as someone who buys eco-friendly products Q - How much do you agree or disagree with the following statement: Buying/using eco- friendly products is an important part of my personal image Source: Eco Pulse, Shelton Group, December 2020 n=2,006 sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
21 26% Can name a product or brand they’ve purchased – or not purchased – because of the environmental or social record of the manufacturer Q - “Have you ever chosen one brand or product over another or stopped purchasing a brand or product based on the social or environmental record of its manufacturer? Name the brand.” Source: Good Company, 2020. n=2,000 sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
Gain a sustainable advantage. 22 And out of that 26%, we have Three Groups of People Choosers have chosen a product or service because of the social or environmental record of the brand Stoppers have stopped purchasing a product or service because of the social or environmental record of the brand Changelings have done both n=248 n=214 n=66 info@sheltongrp.com • 865-524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
23 sshelton@sheltongrp.com • 865-524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
24 + Now let’s look at investors Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
25 + Investor interest is accelerating Principles for Responsible Investment Source: PRI Annual Report 2021 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
26 + What is Sustainable Finance? The investor perspective Source: Credit Suisse © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
27 + Breaking down ESG investment strategies 1 5 7 6 4 2 3 ESG Integration ESG is incorporated into financial analysis Negative/exclusionary screening Certain sectors/companies are excluded based on inherent characteristics or ESG profile Corporate-engagement and shareholder action Direct interaction with issuers to improve practices Norms-based screening Filtering out issuers whose business model/practices does not align with commonly accepted norms or standards (e.g. ILO) Sustainability themed investing Focus on ESG inspired ‘themes’ such as clean energy, ocean health Positive/best-in-class screening Prioritizing investments that exhibit stronger ESG performance than (industry) peers Impact investing Create positive social/environmental outcomes for certain beneficiaries Strategy US$25.2tn US$15tn US$10.5tn US$4.14tn US$1.95tn US$1.38tn US$0.35tn Assets under Management (2020) Source: Global Sustainable Investment Review 2020 Growth rates are compound annual growth rates over the period 2016-20 +25% p.a. +0% p.a. +6% p.a. -10% p.a. +63% p.a. +14% p.a. +9% p.a. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
28 + It is our conviction that companies that perform well on ESG are generally less risky, better positioned for the long term and possibly better prepared for uncertainty. “ ” Vincent Triesschijn Director, Sustainable Investing, ABN AMRO as cited by EY © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
29 + Why ESG scores matter Financial Benefits Management Signal • Improve shareholder relations Ability to respond to investor expectations and preempt shareholder proposals, • Access to Sustainable Finance Top-ESG-ranked companies historically have enjoyed lower costs of capital, many issuers state higher demand for green bonds vs vanilla • Diversify investor base Attract new investors, resulting in a more diverse and stickier investor base. • Inform ESG management Signals certain issues are important to address • Encourages ESG disclosure and dialogue Most ESG raters prefer publicly available information, thus helps shape ESG disclosure content Reputational Benefits • Scores are public Recognized leadership opportunity BUT continue to own your story ! © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
30 + The ABC’s of ESG Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
31 + What is ESG? Environmental • Energy • GHG emissions • Waste • Water • Biodiversity • Packaging • … Social • Diversity, Equity & Inclusion • Labor rights • Human rights • Product safety • Occupational health and safety • Employee development • … Governance • Compliance • Executive compensation • Business ethics • Anti-corruption and anti-bribery • Anti-competitive practices • Taxes • Political Advocacy • … Icons from Freepik via Flaticon.com © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
32 + Rating Agencies have pushed into ESG through acquisitions © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
33 + Influential ESG raters today Questionnaire, Disclosure Questionnaire, Disclosure Switzerland/ U.S. U.S. Disclosure Disclosure Disclosure, voluntary engagement Questionnaire, Disclosure Disclosure DJSI family and S&P ESG indices HQ Universe1 Issuer Role2 Significance3 Netherlands U.S. / France U.S. / Germany U.S. / U.K. U.K. 11,500+ 14,000+ 20,000+ 5,000+ 9,700+ 10,000+ 14,000+ Over 1,500 MSCI ESG indices Strategic partnerships: • Morningstar • Stoxx • Glass Lewis Euronext and Ethibel Indices Stoxx Low Carbon Indices, Solactive ESG screened BlackRock iShare and S-Network ESG Best Practices Indices Feeds into many ESG ratings 1) Definitions of company or issuer may vary, Universes continually expand 2) Raters typically offer an opportunity to “verify” data collected from the public domain 3) Examples only Data as reported by raters in Jan 2022 Other ESG raters: Reprisk, Arabesque, FTSE, … © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
34 + How we think about ESG raters Disclosure only Narrow ESG Specialist ESG ratings Broad ESG Bloomberg Disclosure Score ISS E+S Quality Disclosure Score (EcoVadis, SupplyShift, etc.) S&P SAM ISS ESG Corporate Rating … MSCI ESG Sustainalytics … CDP Just Capital Issuer ability to influence through disclosure MSCI Low Carbon Transition Score Rankings Corporate Human Rights Benchmark Corporate Knights Holistic ESG ratings … (indicative only) © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
35 + Many ratings agencies reference existing Sustainability Reporting Standards Source: Organizations, S&Z North America Inc. National Regulations not covered, Emerging Standards: WEF Stakeholder Capitalism Metrics, B Corp, … Issuers Audience Topic identification Industry-specific Sustainability Accounting Standards Board SASB Standards International Integrated Reporting Council The International <IR> Framework Members of all sizes All stakeholders Pre-determined principles No UN Global Compact 10 Global Compact Principles TCFD Recommendations Global Reporting Initiative GRI Standards Organizations of all sizes All stakeholders (Selection from) Pre- determined Goals No United Nations Sustainable Development Goals* Taskforce for Climate- related Financial Disclosure Publicly listed companies Investors Materiality approach Yes Typically capital market- oriented companies Investors Materiality approach No Capital market-oriented companies Investors Climate risk only No Organizations of all sizes All stakeholders Materiality approach Some Sector Standards © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
36 + The watch-outs Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
37 + The people you’re “selling to” End users Employees Prospective Employees Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
38 Gain a sustainable advantage. What makes a company “Good?” sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
39 3% 3% 4% 4% 5% 5% 6% 6% 7% 9% 20% 28% Publicly take a stand on a social issue Sell eco-friendly products/services Donate surplus goods or services to charities Walk away from profits generated by products and services with known human or environmental costs Donate money to charities, disaster relief, etc. Make a concerted effort to eliminate its environmental impact Work with other companies in their industry to make conditions better for all workers Have an overarching company purpose that focuses the company’s processes and products on actively solving the biggest problems our world faces Make a significant impact for a community cause Is transparent about and actively works to improve the environmental and human impacts of its supply chain Pay its employees a living wage Treat its employees well Source: Good Company Out of those options you chose, which one is the number one thing a company must do? n=2,000 When forced to choose the number-one thing companies must do, the primary responsibility of a “good” company is treating its employees well. sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
40 Response to: “In thinking about the companies that make the products you buy, which of the following descriptions of a company matches who you would you most likely buy from, if everything else about the product/service was equal? (Rank top 3 most appealing.)” n=2,000 So if you do right by the environment but not by employees, you still lose out. 8% 10% 11% 20% 20% 31% Does business in a way that is good for the environment, but doesn’t pay its employees a living wage Contributes in a meaningful way to an important social cause/issue, but doesn’t pay its employees a living wage Contributes in a meaningful way to an important social cause/issue, but isn’t working to reduce its environmental impact Does business in a way that is good for the environment, but doesn’t meaningfully support any social cause/issue Pays its employees a living wage, but isn’t working on reducing its environmental impact Pays its employees a living wage, but doesn’t contribute in a meaningful way to a social cause/issue Percent ranked number one Gain a sustainable advantage. sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
41 Source: Eco Pulse® Wave 13 2020 Please choose the three most important things that companies should be doing to positively impact your purchase decisions. n=2,006 sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. When it comes to the environment… Manufacture in the United States (17%) Recycle (20%) #2 #1 #3 Make recyclable products (15%) Remove chemicals of concern from products (14%) #4 e.g. BPA, mercury or formaldehyde © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
42 62% 59% 57% 65% 59% 56% 55% 63% 39% 40% 42% 44% 44% 45% 45% 48% Eco Pulse® Wave 13 (December 2020) Eco Pulse® Wave 12 (May 2020) Recycling Pulse (Early March 2020) Waking the Sleeping (Giant 2019) Air pollution Plastic waste Climate change Plastic in the ocean Gain a sustainable advantage While concern has backslid during the pandemic, Americans are still more concerned about plastic in the ocean than any other environmental issue *Circularity wording: Deforestation and Water scarcity Source: Waking the Sleeping Giant 2019; Recycling Pulse 2020; Eco Pulse ® Wave 12 2020; Eco Pulse ® Wave 13 2020 When you think about the future of our planet, how concerned are you about each of these issues? Waking the Sleeping Giant (March 2019) n=1,013; Recycling Pulse (Early March 2020) n=1,002; Eco Pulse® Wave 12 (May 2020) n=1,007; Eco Pulse® Wave 13 (Dec 2020) n=2,006 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
43 1/2 even though plastics are believed to be easiest to turn into new products have made changes to reduce the amount of SUP we buy Gain a sustainable advantage Source: Recycling Pulse 2020 n=1,002 sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
44 45% Of brands that use a limited amount or no plastics in their packaging have a more positive opinion Gain a sustainable advantage Source: Recycling Pulse 2020 n=1,002 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
45 76% of Americans say, “recycling makes me feel better about the amount of things I purchase or consume” Gain a sustainable advantage. sshelton@sheltongrp.com • 865-524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
46 But 23% aren’t confident that what they toss in the recycling bin is actually recycled. In 2019 that number was 15%. Gain a sustainable advantage. sshelton@sheltongrp.com • 865-524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
47 3% 8% 23% 28% 39% None at all Very little Undecided Some Very much 67% of consumers believed companies should take responsibility for the end-of-life disposal of the products they manufacture Q29 - How much responsibility do you think a company has for the end-of-life disposal of the products it manufactures? n=2,000 sheltongrp.com • 865-524-8385
48 Gain a sustainable advantage. Individuals have a role… Companies have a bigger role sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
49 Company Commitment/Cause supported Adidas Makes shoes out of ocean plastic in partnership with the non-profit Parlay for the Ocean and has committed to using 100% recycled polyester by 2024 Amazon Donates 0.5% of the price of eligible purchases to the charitable organization of choice Apple Powers all its offices and retail stores in China through solar panels mounted high off the ground, so the grass can grow and local yaks can eat it BP The BP Foundation donated $2 million to the World Health Organization’s COVID-19 Solidarity Response Fund, which supports medical professionals and patients worldwide by providing critical aid and supplies. Chick-fil-A Closed every Sunday to honor the founders’ Christian faith Chobani Recently increased its starting hourly wage to a minimum of $15 an hour, more than double the federal minimum wage Clorox The Clorox brand donated $1,000,000 to the ClearTheList Foundation to provide resources for teachers and students during an unprecedented back-to-school season. Dawn Has donated thousands of bottles to wildlife rescue workers at The Marine Mammal Center and International Bird Rescue to help rescue and release wild animals affected by oil pollution Pfizer Committed to reduce its own greenhouse gas (GHG) emissions by 20% compared to a 2012 baseline Seventh Generation Committed that 100% of its products and packaging will use biobased or post-consumer recycled content by 2020 Starbucks Committed to hire more than 10,000 refugees globally over five years Walmart Committed $100 million over five years to create a new center to address systematic racism in society and accelerate change sshelton@sheltongrp.com • 865-524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
50 Gain a sustainable advantage. Some commitments move favorability more than others. Blue bars show the “very favorable” favorability rating (a 10 on a scale of 1-10) before respondents knew what specific cause the companies support. Pink bars show the rating after commitments were revealed (full descriptions on the next page). Amazon Chick-fil-A Dawn Apple Walmart Clorox Pfizer Starbucks Adidas Chobani Seventh Generation BP Response to: “Please drag the bar to indicate whether you have an overall unfavorable or favorable opinion of the following companies. (0–10, Very unfavorable—Very favorable)” and "Now you'll see statements about brands and causes or stands that they support. Please drag the bar to indicate whether you have an overall unfavorable or favorable opinion of the following companies.” n=2,000 Percent “very favorable” Recycled content Recycled content (oceans) Living wage Human health/current Communities 0.5% charity donation Solar panels/natural environment 20% GHG reduction Hire more refugees 16% 15% 14% 14% 13% 12% 11% 10% 10% 7% 7% 6% 15% 18% 22% 14% 15% 17% 14% 12% 17% 16% 18% 14% Modest 5-yr funding anti-racism Closed Sundays Favorability rating post-social issue information Initial favorability rating Wildlife sshelton@sheltongrp.com • 865-524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
51 Gain a sustainable advantage. Source: Good Company To what extent do you agree or disagree with the following: n=2,000 26% 30% 43% 44% 48% I place more trust in large companies than small companies Companies that do not communicate about their environmental or social initiatives are just as trustworthy as those who do I trust the stores I buy from to be environmentally and/or socially responsible businesses I trust the product brands I buy from to be environmentally and socially responsible businesses I trust brands that I perceive to be environmentally or socially responsible Only 30% of Americans believe that companies who don’t communicate about their Good initiatives are just as trustworthy as those who do % Agree/Strongly Agree sshelton@sheltongrp.com • 865-524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
52 11% 7% 14% 11% 16% 15% 24% 20% 28% 27% 34% 33% 39% 23% 13% 13% 15% 18% 19% 24% 25% 26% 31% 31% 34% 35% Don't know/there's no way to know It says so in a news or magazine article It's sponsored or monitored by the U.S. government My friends/relatives tell me It says so in advertising It has been endorsed by a reliable third party I researched it on the Internet It was made/grown in the U.S.A. It's made by a company with a strong environmental reputation It has been certified by an independent third party The brand has a reputation for green products It says so on the label I read the ingredients/content/energy-savings details on the package 2020 2014 Third-party certifications are rising in importance as a top way consumers discover if a brand is green. Source: Eco Pulse ® Wave 12 2020 and Eco Pulse ® 2014 How do you know that a product is green? % Ranked in Top Three 2020 n=1,007; 2014 n=2,015 sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. 2020 2014 % Ranked in Top 3 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
53 Source: Good Company Where do you learn about what companies are doing – or not doing – to create a better society and environment? (Select all that apply.) n=2,000 Here’s where you need to tell your story… 24% 2% 12% 17% 26% 27% 28% 30% 34% None of the above Somewhere else Outdoor signage/billboards In-store signage/displays Brand/Manufacturer’s website or social media sites Print articles or advertisements (magazines, newspapers, etc.) Product label or packaging Word of mouth Television content sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. This means social media, referral programs, influencer marketing © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
54 41% 28% 34% 36% 22% 18% 13% 11% 15% 11% 14% 11% 19% 14% 11% 11% 8% 8% 36% 45% 33% 36% 41% 35% 40% 35% 37% 38% 34% 35% 30% 27% 26% 27% 22% 18% 16% 20% 25% 19% 27% 36% 35% 42% 36% 39% 38% 40% 34% 38% 41% 41% 48% 34% 7% 8% 8% 9% 9% 11% 12% 12% 12% 12% 13% 13% 18% 21% 21% 21% 23% 40% Strangers Advertising Press Congress and the Senate Large companies Courts Certifications on labels Small companies Neighbors Books Schools and the educational system Documentaries Churches Police Scientists Members of the military Friends Your own family Consumers place the highest levels of trust in family, friends, military members, scientists, police, and churches. Source: Eco Pulse® Wave 13 2020 How much trust, in general, do you have in the following? n=2,006 sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
55 + Raters and investors Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
56 What ESG raters are (typically) looking for GHG Water … Policies/Goals Actions Results Environment D&I H&S … Social Risk Mgmt CEO Pay … Governance Exposure Material topics and risk exposure Maturity of Management Policies/Goals, Actions, Results Disclosure Private responses and public reporting Controversies and other external data News reports, employee reviews, patent filings 1 2 3 4 4 Levers Relevant topics for each industry Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
57 Focus topics will vary by industry • Climate Risk Assessment • GHG Goals • Energy/GHG data, often through CDP reporting • Water • Waste • Resource Efficiency • Diversity, Equity, Inclusion Policy and Metrics • Human Rights • Labor Standards • Ethics / Compliance • Supplier Code of Conduct • Risk Assessment • Audit results • Product Portfolio development • Product Impacts, e.g. Lifecycle Assessments • Industry specific expectations • Oversight, Board Independence • Management Incentives • Shareholder protection • Risk Management • … Climate Environment People Supply Chain Product Governance Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
58 Types of information ESG raters use Data disclosed by company (publicly or privately) Data on individual KPIs estimated by a 3rd party Issue specific external risk factors NGO reports, news, controversies, external data Example: Energy intensity disclosed by company Example: Scope 3 emissions estimated by TruCost (part of S&P) Example: Financial risk of a “plastic fee” regulation Example: Employee reviews on Glassdoor.com Inside View Outside-In View easier to influence harder to influence Disclosed ESG Data Inferred ESG Data External Factors Alternative Data Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
59 MSCI ESG Ratings – data sources Illustrative only Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
60 Success factors to improve ESG scores Ø Continuous ESG progress, and specific and comprehensive disclosure of … Ø Management approaches for all focus topics (policies, systems) Ø Goals Ø Actions and Progress Ø Metrics Disclosure-based Ø Comprehensive, tailored responses to specific questions Ø Often evidence is required, such as: Ø Reference to public disclosure Ø Internal documents to be uploaded as attachments (policies/procedures, presentations, action plans, photos, …) Questionnaire-based Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
61 Prioritizing action items to improve scores following a gap analysis high Relevance Resources required low high Low-hanging fruits Assess feasibility Categorize action items û ü ü ? ü Disclosure only Easy Wins Heavy Lifts Out of Scope Cannot be influenced without changes to the business model, e.g. exposure scores Information is available, but not public yet Information can be put together, often tweaking an existing processes/KPIs (e.g. update Human Rights policy) Project required to address issue (e.g. build responsible sourcing program) Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
62 Metrics Map – a tool we use to understand overlap between raters Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
63 State Street ESG Data Platform added Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
64 Blackrock’s ESG Engagement Priorities for 2021 Source: BlackRock; S&Z Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
65 + Baking sustainability into your brand platform & framing your ESG story at different levels Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
66 + Gain a sustainable advantage. Start with a communications construct to unify your story and bring it to life © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
Create Prescribe Why complimented by what Narrative Story with some supporting detail Sentiment Themes/Pillars Why Umbrella Captures tone not specifics Value Proposition What Details, features and aspects Category and Bucketing of all supporting detail Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
68 You want to craft and communicate a sustainability story that supports the brand story, is differentiated from competitor stories, and is compelling to stakeholder audiences – and delivered on a consistent basis in engaging ways. Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
69 For example: Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
70 The Papa John’s brand story… Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
71 …is clearly connected to the sustainability story… Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
72 Execute Expand Launch …and it comes to life in ongoing content Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
73 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
74 The Rheem brand story… Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
75 …is clearly connected to the sustainability story… Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
76 …and it comes to life in ongoing content Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
77 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
78 + Gain a sustainable advantage. Leverage your communications construct for Reporting and Digital Content that speaks to multiple audiences © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
79 + Nachhaltigkeits- Reporting ESG Performance ESG Disclosure Investors, raters and experts – Annual Report and comprehensive Sustainability Report; web content Consumers/Customers – Website, social media content, digital campaigns, point-of- sale engagement, sales collateral Employees – Intranet, communication guides, trainings Leverage your Comms. Construct to communicate your performance to multiple audiences Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
80 + Divide and conquer! Experts look for details, while the consumers often appreciate engaging content. 1. 2. 3. 4. Project management is a key success factor! Starting early, and communicating clear plans & expectations will help you manage a broad coalition of contributors. Focus on progress! Define sustainability through material topics, set goals and measure progress to drive relevant content. Good reporting philosophy Focus on key messages! Don’t view the report as an end in itself. Be guided by what the audience wants to know, not what the company likes to report. Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
© 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
© 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
© 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
…and at a deeper level for ESG raters and investors Your ESG-related website copy can work at a high level for a consumer… Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
85 + Case Study: Bosch 2020 Sustainability Report Chapter Summaries Granular insight 1 2 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
86 + Online- Stories Timely Communication Transparency for experts Highlights and Big Picture Strategy Bosch Sustainability Performance spotlights factbook How everything works together © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
87 + Case Study: Hapag Lloyd 2020 Sustainability Report Magazine-style highlights Detailed GRI reporting 1 2 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
88 + Let’s take a quick bio break Be back in 15 minutes Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
89 + Your takeaways This is the workshop part! Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
90 + Here’s what you’re working on together • Pick one of the companies represented at your table. • Discuss and decide who the most important ratings agencies are for that company. • Discuss and decide what the key watch-outs are for the company and what actions, commitments and proof points the company needs to have in place to appeal to consumers, employees and investors/ratings agencies. • Work together to begin fleshing out a communications framework for the sustainability story – direction for the lead message and pillars. Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
91 + DEGREES OF INNOVATION DEGREES OF EFFICIENCY DEGREES OF LEADERSHIP Sustainability Framework A Greater Degree of Good Designing for Zero Waste We are focused on innovating with intent, engineering solutions with lifetime sustainability in mind—from material selection to smart features to responsible recycling We strive for operational excellence, working smarter and more sustainably to consume fewer resources, generate less waste and ensure simpler, safer processes We hire and inspire our teams to be next- generation thinkers and responsible stewards of our industry, the greater community and the environment RALLYING CRY KEY COMMITMENT PILLARS/REASONS TO BELIEVE SDG ALIGNMENT VISION TIME-DATED GOALS Launch a line of heating, cooling and water heating products that boast a 50% reduction in greenhouse gas footprint. Reduce greenhouse gas emissions by 50% and achieve zero waste to landfill in our global manufacturing operations Train 250,000 plumbers and contractors on sustainable products or sustainable installation and recycling best practices EXAMPLE © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
92 + Discussion Suzanne Shelton 865-524-8385 sshelton@sheltongrp.com Christopher Haasen 347-778-2748 haasen@sandz-co.com © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
93 + Thank you! Suzanne Shelton 865-524-8385 sshelton@sheltongrp.com Christopher Haasen 347-778-2748 haasen@sandz-co.com © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
94 + MSCI ESG Ratings added © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
95 + Sustainalytics ESG Risk Rating added © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
96 + Refinitiv ESG company scores added © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
97 + ISS ESG Corporate Rating added © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
98 + S&P Global ESG Scores added © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
99 + VigeoEiris (Moody’s) ESGAssessment added © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.

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GreenBiz 22: Tutorial - Finding the Story in Your ESG Numbers

  • 1.
    1 + 2/15/22 Finding the storyin your ESG numbers How to leverage your ESG story to build market preference, drive sales, attract investors and retain employees Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 2.
    2 + What are weup to today? • The ABC’s of ESG — what you need to know about the terminology and standards, the reporting frameworks and the ratings agency game • The watch-outs — the gaps that must be filled and the commitments that must be made to appease ratings agencies and investors, as well as employees and consumers. • Baking sustainability into your brand platform and framing your ESG story at different levels so you can speak to several different audiences in a way they can each understand, while staying consistent — including via your ESG reporting. • Working together to nail down several key takeaways -- like which ESG ratings agencies matter most for your company, the most important “watch-outs” and story elements for your situation, and what your lead message should be. Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 3.
    3 + About us Gain asustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 4.
    4 + Gain a sustainableadvantage + 3 Why Shelton Group? ESG Subject Matter Experts • 30 years in business • 16 years exclusively focused on creating a market advantage for organizations working to create a sustainable future Recognized Thought Leaders • 15 years of conducting our own, proprietary Pulse® trending studies regarding U.S. market beliefs and expectations surrounding sustainability issues • Featured speaker at 15-20 industry events annually • 8,000+ subscribers to weekly insights newsletter • Regularly featured in business press Solution Providers • Insight-driven marcomm strategies and campaigns that: - Evoke emotion - Change mindsets - Build brands - Sell products …with no greenwashing! Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 5.
    5 Gain asustainable advantage. Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 6.
    6 Gain asustainable advantage. The company we keep Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 7.
    – S&Z NorthAmerica – Sustainability & ESG Experts • Established 2005 • Exclusive focus on sustainability / ESG management • 25 experts Global Reach • Offices in New York, NY and Hamburg, Germany • Network of partners to deliver projects globally • 660+ projects for more than 190 clients Meeting pressing challenges head-on • Sustainability Strategy, Goals, KPIs • Responsible Sourcing • Reporting, ESG Ratings, Stakeholder Management • Impact Assessment, Metrics and Software Support © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 8.
    8 + Strategy & Organization §Vision, strategy, targets § Materiality analysis § Code of conduct § Organization and processes § Supply chain management § Performance management and indicators § Reporting lines § Training Communication Data & IT Management § Stakeholder management (surveys, dialogues, conferences) § Print and online reporting § Assistance in investor ESG communication § Responding to ESG questionnaires § Software selection § Implementation § Training, user support S&Z – Consultants for Corporate Responsibility © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 9.
    9 + S&Z Clients © 2022Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 10.
    10 + Why ESG mattersmore than ever Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 11.
    11 + Let’s start withthe people you’re “selling to” End users Employees Prospective Employees Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 12.
    12 As part ofits ongoing polling of Americans to deeply understand their beliefs and expectations around sustainability, Shelton Group fielded a survey to explore how Americans define good and bad companies and how those perceptions drive purchase decisions. This online survey was fielded December 2020-January 2021 and included a total of 2,000 U.S. respondents. Respondent Demographics The survey sample was stratified to mirror the U.S. population, using quotas for geography, age, gender, education and race; data were weighted slightly to match U.S. population distributions. The margin of error is +/- 3.1%. Methodology Gain a sustainable advantage. sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 13.
    13 Gain asustainable advantage. What’s a “Good Company or Brand?” sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 14.
    14 Source: Good Company Namethree companies or brands that you consider to be “good.” It’s up to you to decide on what your meaning of “good” is. n=2,000 Here’s what Americans think *Brands shown had 5 or more mentions sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 15.
    15 And here’s why: Source:Good Company Why do you think this is a good company? n=1,686 23% of those surveyed chose ESG-related answers 2% 2% 3% 3% 3% 3% 3% 4% 4% 4% 5% 5% 6% 6% 6% 7% 7% 8% 14% 18% 20% 21% 26% 51% Diversity/inclusion Healthy/organic/vegan products Successful/profitable/popular Value Trustworthy/fair Convenient Fun/cool/friendly Handled covid well Discounts/deals/sales Stands up for something/good values Longstanding/reputable Charitable activities/give back Care about environment/the world No good companies/None/NA Innovative/unique Community-focused/give to community/help people Reliable/honest Takes care of employees/creates jobs Variety/availability/has what I need Quality Price Good/all/everything/amazing Customer service Good/best version of the product they sell 23% of those surveyed chose ESG-related answers sshelton@sheltongrp.com • 865-524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 16.
    16 Gain asustainable advantage. So then, what’s a “Bad Company or Brand?” Gain a sustainable advantage. sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 17.
    17 Gain asustainable advantage. Source: Good Company Name three companies or brands that you consider to be “bad.” It’s up to you to decide on what your meaning of “bad” is. n=2,000 Here’s what Americans think *Brands shown had 5 or more mentions sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 18.
    18 Gain asustainable advantage. 4% 4% 4% 5% 5% 5% 6% 6% 6% 7% 7% 7% 9% 10% 12% 13% 14% 14% 16% 18% 24% Have too much power/monopoly Censorship/they censor people Unreliable products/service Poor policies/business tactics Security/privacy concerns/data issues Greedy/only focused on money Poor leadership Don't know Harmful to the environment Promotes misinformation/doesn't correct lies Don't like/just my opinion/bad Food/drink is bad I disagree with their social issues/stance/values Corrupt/criminal/crooked/fraud/scandals Poor quality/cheap Products are harmful/unhealthy Treats employees poorly Dislike the products/brand Cannot trust/deceptive/dishonest/manipulative Too expensive Bad service And here’s why: 31% of those surveyed chose ESG-related answers Source: Good Company Why do you think this is a bad company? n=1,326 sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 19.
    19 Gain asustainable advantage. So what does Good vs. Bad have to do with driving purchase? Gain a sustainable advantage. sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 20.
    20 42% want to beseen as someone who buys eco-friendly products Q - How much do you agree or disagree with the following statement: Buying/using eco- friendly products is an important part of my personal image Source: Eco Pulse, Shelton Group, December 2020 n=2,006 sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 21.
    21 26% Can name aproduct or brand they’ve purchased – or not purchased – because of the environmental or social record of the manufacturer Q - “Have you ever chosen one brand or product over another or stopped purchasing a brand or product based on the social or environmental record of its manufacturer? Name the brand.” Source: Good Company, 2020. n=2,000 sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 22.
    Gain a sustainableadvantage. 22 And out of that 26%, we have Three Groups of People Choosers have chosen a product or service because of the social or environmental record of the brand Stoppers have stopped purchasing a product or service because of the social or environmental record of the brand Changelings have done both n=248 n=214 n=66 info@sheltongrp.com • 865-524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 23.
    23 sshelton@sheltongrp.com •865-524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 24.
    24 + Now let’s lookat investors Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 25.
    25 + Investor interest isaccelerating Principles for Responsible Investment Source: PRI Annual Report 2021 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 26.
    26 + What is SustainableFinance? The investor perspective Source: Credit Suisse © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 27.
    27 + Breaking down ESGinvestment strategies 1 5 7 6 4 2 3 ESG Integration ESG is incorporated into financial analysis Negative/exclusionary screening Certain sectors/companies are excluded based on inherent characteristics or ESG profile Corporate-engagement and shareholder action Direct interaction with issuers to improve practices Norms-based screening Filtering out issuers whose business model/practices does not align with commonly accepted norms or standards (e.g. ILO) Sustainability themed investing Focus on ESG inspired ‘themes’ such as clean energy, ocean health Positive/best-in-class screening Prioritizing investments that exhibit stronger ESG performance than (industry) peers Impact investing Create positive social/environmental outcomes for certain beneficiaries Strategy US$25.2tn US$15tn US$10.5tn US$4.14tn US$1.95tn US$1.38tn US$0.35tn Assets under Management (2020) Source: Global Sustainable Investment Review 2020 Growth rates are compound annual growth rates over the period 2016-20 +25% p.a. +0% p.a. +6% p.a. -10% p.a. +63% p.a. +14% p.a. +9% p.a. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 28.
    28 + It is ourconviction that companies that perform well on ESG are generally less risky, better positioned for the long term and possibly better prepared for uncertainty. “ ” Vincent Triesschijn Director, Sustainable Investing, ABN AMRO as cited by EY © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 29.
    29 + Why ESG scoresmatter Financial Benefits Management Signal • Improve shareholder relations Ability to respond to investor expectations and preempt shareholder proposals, • Access to Sustainable Finance Top-ESG-ranked companies historically have enjoyed lower costs of capital, many issuers state higher demand for green bonds vs vanilla • Diversify investor base Attract new investors, resulting in a more diverse and stickier investor base. • Inform ESG management Signals certain issues are important to address • Encourages ESG disclosure and dialogue Most ESG raters prefer publicly available information, thus helps shape ESG disclosure content Reputational Benefits • Scores are public Recognized leadership opportunity BUT continue to own your story ! © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 30.
    30 + The ABC’s ofESG Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 31.
    31 + What is ESG? Environmental •Energy • GHG emissions • Waste • Water • Biodiversity • Packaging • … Social • Diversity, Equity & Inclusion • Labor rights • Human rights • Product safety • Occupational health and safety • Employee development • … Governance • Compliance • Executive compensation • Business ethics • Anti-corruption and anti-bribery • Anti-competitive practices • Taxes • Political Advocacy • … Icons from Freepik via Flaticon.com © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 32.
    32 + Rating Agencies havepushed into ESG through acquisitions © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 33.
    33 + Influential ESG raterstoday Questionnaire, Disclosure Questionnaire, Disclosure Switzerland/ U.S. U.S. Disclosure Disclosure Disclosure, voluntary engagement Questionnaire, Disclosure Disclosure DJSI family and S&P ESG indices HQ Universe1 Issuer Role2 Significance3 Netherlands U.S. / France U.S. / Germany U.S. / U.K. U.K. 11,500+ 14,000+ 20,000+ 5,000+ 9,700+ 10,000+ 14,000+ Over 1,500 MSCI ESG indices Strategic partnerships: • Morningstar • Stoxx • Glass Lewis Euronext and Ethibel Indices Stoxx Low Carbon Indices, Solactive ESG screened BlackRock iShare and S-Network ESG Best Practices Indices Feeds into many ESG ratings 1) Definitions of company or issuer may vary, Universes continually expand 2) Raters typically offer an opportunity to “verify” data collected from the public domain 3) Examples only Data as reported by raters in Jan 2022 Other ESG raters: Reprisk, Arabesque, FTSE, … © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 34.
    34 + How we thinkabout ESG raters Disclosure only Narrow ESG Specialist ESG ratings Broad ESG Bloomberg Disclosure Score ISS E+S Quality Disclosure Score (EcoVadis, SupplyShift, etc.) S&P SAM ISS ESG Corporate Rating … MSCI ESG Sustainalytics … CDP Just Capital Issuer ability to influence through disclosure MSCI Low Carbon Transition Score Rankings Corporate Human Rights Benchmark Corporate Knights Holistic ESG ratings … (indicative only) © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 35.
    35 + Many ratings agenciesreference existing Sustainability Reporting Standards Source: Organizations, S&Z North America Inc. National Regulations not covered, Emerging Standards: WEF Stakeholder Capitalism Metrics, B Corp, … Issuers Audience Topic identification Industry-specific Sustainability Accounting Standards Board SASB Standards International Integrated Reporting Council The International <IR> Framework Members of all sizes All stakeholders Pre-determined principles No UN Global Compact 10 Global Compact Principles TCFD Recommendations Global Reporting Initiative GRI Standards Organizations of all sizes All stakeholders (Selection from) Pre- determined Goals No United Nations Sustainable Development Goals* Taskforce for Climate- related Financial Disclosure Publicly listed companies Investors Materiality approach Yes Typically capital market- oriented companies Investors Materiality approach No Capital market-oriented companies Investors Climate risk only No Organizations of all sizes All stakeholders Materiality approach Some Sector Standards © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 36.
    36 + The watch-outs Gain asustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 37.
    37 + The people you’re“selling to” End users Employees Prospective Employees Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 38.
    38 Gain asustainable advantage. What makes a company “Good?” sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 39.
    39 3% 3% 4% 4% 5% 5% 6% 6% 7% 9% 20% 28% Publicly take astand on a social issue Sell eco-friendly products/services Donate surplus goods or services to charities Walk away from profits generated by products and services with known human or environmental costs Donate money to charities, disaster relief, etc. Make a concerted effort to eliminate its environmental impact Work with other companies in their industry to make conditions better for all workers Have an overarching company purpose that focuses the company’s processes and products on actively solving the biggest problems our world faces Make a significant impact for a community cause Is transparent about and actively works to improve the environmental and human impacts of its supply chain Pay its employees a living wage Treat its employees well Source: Good Company Out of those options you chose, which one is the number one thing a company must do? n=2,000 When forced to choose the number-one thing companies must do, the primary responsibility of a “good” company is treating its employees well. sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 40.
    40 Response to: “Inthinking about the companies that make the products you buy, which of the following descriptions of a company matches who you would you most likely buy from, if everything else about the product/service was equal? (Rank top 3 most appealing.)” n=2,000 So if you do right by the environment but not by employees, you still lose out. 8% 10% 11% 20% 20% 31% Does business in a way that is good for the environment, but doesn’t pay its employees a living wage Contributes in a meaningful way to an important social cause/issue, but doesn’t pay its employees a living wage Contributes in a meaningful way to an important social cause/issue, but isn’t working to reduce its environmental impact Does business in a way that is good for the environment, but doesn’t meaningfully support any social cause/issue Pays its employees a living wage, but isn’t working on reducing its environmental impact Pays its employees a living wage, but doesn’t contribute in a meaningful way to a social cause/issue Percent ranked number one Gain a sustainable advantage. sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 41.
    41 Source: Eco Pulse®Wave 13 2020 Please choose the three most important things that companies should be doing to positively impact your purchase decisions. n=2,006 sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. When it comes to the environment… Manufacture in the United States (17%) Recycle (20%) #2 #1 #3 Make recyclable products (15%) Remove chemicals of concern from products (14%) #4 e.g. BPA, mercury or formaldehyde © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 42.
    42 62% 59% 57% 65% 59% 56% 55% 63% 39% 40% 42% 44% 44% 45% 45% 48% Eco Pulse® Wave13 (December 2020) Eco Pulse® Wave 12 (May 2020) Recycling Pulse (Early March 2020) Waking the Sleeping (Giant 2019) Air pollution Plastic waste Climate change Plastic in the ocean Gain a sustainable advantage While concern has backslid during the pandemic, Americans are still more concerned about plastic in the ocean than any other environmental issue *Circularity wording: Deforestation and Water scarcity Source: Waking the Sleeping Giant 2019; Recycling Pulse 2020; Eco Pulse ® Wave 12 2020; Eco Pulse ® Wave 13 2020 When you think about the future of our planet, how concerned are you about each of these issues? Waking the Sleeping Giant (March 2019) n=1,013; Recycling Pulse (Early March 2020) n=1,002; Eco Pulse® Wave 12 (May 2020) n=1,007; Eco Pulse® Wave 13 (Dec 2020) n=2,006 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 43.
    43 1/2 even though plasticsare believed to be easiest to turn into new products have made changes to reduce the amount of SUP we buy Gain a sustainable advantage Source: Recycling Pulse 2020 n=1,002 sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 44.
    44 45% Of brands thatuse a limited amount or no plastics in their packaging have a more positive opinion Gain a sustainable advantage Source: Recycling Pulse 2020 n=1,002 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 45.
    45 76% of Americanssay, “recycling makes me feel better about the amount of things I purchase or consume” Gain a sustainable advantage. sshelton@sheltongrp.com • 865-524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 46.
    46 But 23% aren’tconfident that what they toss in the recycling bin is actually recycled. In 2019 that number was 15%. Gain a sustainable advantage. sshelton@sheltongrp.com • 865-524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 47.
    47 3% 8% 23% 28% 39% None at allVery little Undecided Some Very much 67% of consumers believed companies should take responsibility for the end-of-life disposal of the products they manufacture Q29 - How much responsibility do you think a company has for the end-of-life disposal of the products it manufactures? n=2,000 sheltongrp.com • 865-524-8385
  • 48.
    48 Gain asustainable advantage. Individuals have a role… Companies have a bigger role sshelton@sheltongrp.com • (865) 524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 49.
    49 Company Commitment/Cause supported Adidas Makesshoes out of ocean plastic in partnership with the non-profit Parlay for the Ocean and has committed to using 100% recycled polyester by 2024 Amazon Donates 0.5% of the price of eligible purchases to the charitable organization of choice Apple Powers all its offices and retail stores in China through solar panels mounted high off the ground, so the grass can grow and local yaks can eat it BP The BP Foundation donated $2 million to the World Health Organization’s COVID-19 Solidarity Response Fund, which supports medical professionals and patients worldwide by providing critical aid and supplies. Chick-fil-A Closed every Sunday to honor the founders’ Christian faith Chobani Recently increased its starting hourly wage to a minimum of $15 an hour, more than double the federal minimum wage Clorox The Clorox brand donated $1,000,000 to the ClearTheList Foundation to provide resources for teachers and students during an unprecedented back-to-school season. Dawn Has donated thousands of bottles to wildlife rescue workers at The Marine Mammal Center and International Bird Rescue to help rescue and release wild animals affected by oil pollution Pfizer Committed to reduce its own greenhouse gas (GHG) emissions by 20% compared to a 2012 baseline Seventh Generation Committed that 100% of its products and packaging will use biobased or post-consumer recycled content by 2020 Starbucks Committed to hire more than 10,000 refugees globally over five years Walmart Committed $100 million over five years to create a new center to address systematic racism in society and accelerate change sshelton@sheltongrp.com • 865-524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 50.
    50 Gain asustainable advantage. Some commitments move favorability more than others. Blue bars show the “very favorable” favorability rating (a 10 on a scale of 1-10) before respondents knew what specific cause the companies support. Pink bars show the rating after commitments were revealed (full descriptions on the next page). Amazon Chick-fil-A Dawn Apple Walmart Clorox Pfizer Starbucks Adidas Chobani Seventh Generation BP Response to: “Please drag the bar to indicate whether you have an overall unfavorable or favorable opinion of the following companies. (0–10, Very unfavorable—Very favorable)” and "Now you'll see statements about brands and causes or stands that they support. Please drag the bar to indicate whether you have an overall unfavorable or favorable opinion of the following companies.” n=2,000 Percent “very favorable” Recycled content Recycled content (oceans) Living wage Human health/current Communities 0.5% charity donation Solar panels/natural environment 20% GHG reduction Hire more refugees 16% 15% 14% 14% 13% 12% 11% 10% 10% 7% 7% 6% 15% 18% 22% 14% 15% 17% 14% 12% 17% 16% 18% 14% Modest 5-yr funding anti-racism Closed Sundays Favorability rating post-social issue information Initial favorability rating Wildlife sshelton@sheltongrp.com • 865-524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 51.
    51 Gain asustainable advantage. Source: Good Company To what extent do you agree or disagree with the following: n=2,000 26% 30% 43% 44% 48% I place more trust in large companies than small companies Companies that do not communicate about their environmental or social initiatives are just as trustworthy as those who do I trust the stores I buy from to be environmentally and/or socially responsible businesses I trust the product brands I buy from to be environmentally and socially responsible businesses I trust brands that I perceive to be environmentally or socially responsible Only 30% of Americans believe that companies who don’t communicate about their Good initiatives are just as trustworthy as those who do % Agree/Strongly Agree sshelton@sheltongrp.com • 865-524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 52.
    52 11% 7% 14% 11% 16% 15% 24% 20% 28% 27% 34% 33% 39% 23% 13% 13% 15% 18% 19% 24% 25% 26% 31% 31% 34% 35% Don't know/there's noway to know It says so in a news or magazine article It's sponsored or monitored by the U.S. government My friends/relatives tell me It says so in advertising It has been endorsed by a reliable third party I researched it on the Internet It was made/grown in the U.S.A. It's made by a company with a strong environmental reputation It has been certified by an independent third party The brand has a reputation for green products It says so on the label I read the ingredients/content/energy-savings details on the package 2020 2014 Third-party certifications are rising in importance as a top way consumers discover if a brand is green. Source: Eco Pulse ® Wave 12 2020 and Eco Pulse ® 2014 How do you know that a product is green? % Ranked in Top Three 2020 n=1,007; 2014 n=2,015 sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. 2020 2014 % Ranked in Top 3 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 53.
    53 Source: Good Company Wheredo you learn about what companies are doing – or not doing – to create a better society and environment? (Select all that apply.) n=2,000 Here’s where you need to tell your story… 24% 2% 12% 17% 26% 27% 28% 30% 34% None of the above Somewhere else Outdoor signage/billboards In-store signage/displays Brand/Manufacturer’s website or social media sites Print articles or advertisements (magazines, newspapers, etc.) Product label or packaging Word of mouth Television content sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. This means social media, referral programs, influencer marketing © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 54.
    54 41% 28% 34% 36% 22% 18% 13% 11% 15% 11% 14% 11% 19% 14% 11% 11% 8% 8% 36% 45% 33% 36% 41% 35% 40% 35% 37% 38% 34% 35% 30% 27% 26% 27% 22% 18% 16% 20% 25% 19% 27% 36% 35% 42% 36% 39% 38% 40% 34% 38% 41% 41% 48% 34% 7% 8% 8% 9% 9% 11% 12% 12% 12% 12% 13% 13% 18% 21% 21% 21% 23% 40% Strangers Advertising Press Congress and theSenate Large companies Courts Certifications on labels Small companies Neighbors Books Schools and the educational system Documentaries Churches Police Scientists Members of the military Friends Your own family Consumers place the highest levels of trust in family, friends, military members, scientists, police, and churches. Source: Eco Pulse® Wave 13 2020 How much trust, in general, do you have in the following? n=2,006 sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 55.
    55 + Raters and investors Gaina sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 56.
    56 What ESG ratersare (typically) looking for GHG Water … Policies/Goals Actions Results Environment D&I H&S … Social Risk Mgmt CEO Pay … Governance Exposure Material topics and risk exposure Maturity of Management Policies/Goals, Actions, Results Disclosure Private responses and public reporting Controversies and other external data News reports, employee reviews, patent filings 1 2 3 4 4 Levers Relevant topics for each industry Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 57.
    57 Focus topics willvary by industry • Climate Risk Assessment • GHG Goals • Energy/GHG data, often through CDP reporting • Water • Waste • Resource Efficiency • Diversity, Equity, Inclusion Policy and Metrics • Human Rights • Labor Standards • Ethics / Compliance • Supplier Code of Conduct • Risk Assessment • Audit results • Product Portfolio development • Product Impacts, e.g. Lifecycle Assessments • Industry specific expectations • Oversight, Board Independence • Management Incentives • Shareholder protection • Risk Management • … Climate Environment People Supply Chain Product Governance Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 58.
    58 Types of informationESG raters use Data disclosed by company (publicly or privately) Data on individual KPIs estimated by a 3rd party Issue specific external risk factors NGO reports, news, controversies, external data Example: Energy intensity disclosed by company Example: Scope 3 emissions estimated by TruCost (part of S&P) Example: Financial risk of a “plastic fee” regulation Example: Employee reviews on Glassdoor.com Inside View Outside-In View easier to influence harder to influence Disclosed ESG Data Inferred ESG Data External Factors Alternative Data Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 59.
    59 MSCI ESG Ratings– data sources Illustrative only Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 60.
    60 Success factors toimprove ESG scores Ø Continuous ESG progress, and specific and comprehensive disclosure of … Ø Management approaches for all focus topics (policies, systems) Ø Goals Ø Actions and Progress Ø Metrics Disclosure-based Ø Comprehensive, tailored responses to specific questions Ø Often evidence is required, such as: Ø Reference to public disclosure Ø Internal documents to be uploaded as attachments (policies/procedures, presentations, action plans, photos, …) Questionnaire-based Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 61.
    61 Prioritizing action itemsto improve scores following a gap analysis high Relevance Resources required low high Low-hanging fruits Assess feasibility Categorize action items û ü ü ? ü Disclosure only Easy Wins Heavy Lifts Out of Scope Cannot be influenced without changes to the business model, e.g. exposure scores Information is available, but not public yet Information can be put together, often tweaking an existing processes/KPIs (e.g. update Human Rights policy) Project required to address issue (e.g. build responsible sourcing program) Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 62.
    62 Metrics Map –a tool we use to understand overlap between raters Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 63.
    63 State Street ESGData Platform added Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 64.
    64 Blackrock’s ESG EngagementPriorities for 2021 Source: BlackRock; S&Z Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 65.
    65 + Baking sustainability into yourbrand platform & framing your ESG story at different levels Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 66.
    66 + Gain a sustainableadvantage. Start with a communications construct to unify your story and bring it to life © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 67.
    Create Prescribe Why complimented bywhat Narrative Story with some supporting detail Sentiment Themes/Pillars Why Umbrella Captures tone not specifics Value Proposition What Details, features and aspects Category and Bucketing of all supporting detail Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 68.
    68 You want tocraft and communicate a sustainability story that supports the brand story, is differentiated from competitor stories, and is compelling to stakeholder audiences – and delivered on a consistent basis in engaging ways. Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 69.
    69 For example: Gain asustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 70.
    70 The Papa John’sbrand story… Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 71.
    71 …is clearly connectedto the sustainability story… Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 72.
    72 Execute Expand Launch …and itcomes to life in ongoing content Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 73.
    73 Gain asustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 74.
    74 The Rheem brandstory… Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 75.
    75 …is clearly connectedto the sustainability story… Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 76.
    76 …and it comesto life in ongoing content Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 77.
    77 Gain asustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 78.
    78 + Gain a sustainableadvantage. Leverage your communications construct for Reporting and Digital Content that speaks to multiple audiences © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 79.
    79 + Nachhaltigkeits- Reporting ESG Performance ESG Disclosure Investors, ratersand experts – Annual Report and comprehensive Sustainability Report; web content Consumers/Customers – Website, social media content, digital campaigns, point-of- sale engagement, sales collateral Employees – Intranet, communication guides, trainings Leverage your Comms. Construct to communicate your performance to multiple audiences Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 80.
    80 + Divide and conquer!Experts look for details, while the consumers often appreciate engaging content. 1. 2. 3. 4. Project management is a key success factor! Starting early, and communicating clear plans & expectations will help you manage a broad coalition of contributors. Focus on progress! Define sustainability through material topics, set goals and measure progress to drive relevant content. Good reporting philosophy Focus on key messages! Don’t view the report as an end in itself. Be guided by what the audience wants to know, not what the company likes to report. Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 81.
    © 2022 SheltonCommunication Group, Inc. ALL RIGHTS RESERVED.
  • 82.
    © 2022 SheltonCommunication Group, Inc. ALL RIGHTS RESERVED.
  • 83.
    © 2022 SheltonCommunication Group, Inc. ALL RIGHTS RESERVED.
  • 84.
    …and at adeeper level for ESG raters and investors Your ESG-related website copy can work at a high level for a consumer… Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 85.
    85 + Case Study: Bosch2020 Sustainability Report Chapter Summaries Granular insight 1 2 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 86.
    86 + Online- Stories Timely Communication Transparency for experts Highlightsand Big Picture Strategy Bosch Sustainability Performance spotlights factbook How everything works together © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 87.
    87 + Case Study: HapagLloyd 2020 Sustainability Report Magazine-style highlights Detailed GRI reporting 1 2 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 88.
    88 + Let’s take aquick bio break Be back in 15 minutes Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 89.
    89 + Your takeaways This isthe workshop part! Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 90.
    90 + Here’s what you’reworking on together • Pick one of the companies represented at your table. • Discuss and decide who the most important ratings agencies are for that company. • Discuss and decide what the key watch-outs are for the company and what actions, commitments and proof points the company needs to have in place to appeal to consumers, employees and investors/ratings agencies. • Work together to begin fleshing out a communications framework for the sustainability story – direction for the lead message and pillars. Gain a sustainable advantage. © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
  • 91.
    91 + DEGREES OF INNOVATIONDEGREES OF EFFICIENCY DEGREES OF LEADERSHIP Sustainability Framework A Greater Degree of Good Designing for Zero Waste We are focused on innovating with intent, engineering solutions with lifetime sustainability in mind—from material selection to smart features to responsible recycling We strive for operational excellence, working smarter and more sustainably to consume fewer resources, generate less waste and ensure simpler, safer processes We hire and inspire our teams to be next- generation thinkers and responsible stewards of our industry, the greater community and the environment RALLYING CRY KEY COMMITMENT PILLARS/REASONS TO BELIEVE SDG ALIGNMENT VISION TIME-DATED GOALS Launch a line of heating, cooling and water heating products that boast a 50% reduction in greenhouse gas footprint. Reduce greenhouse gas emissions by 50% and achieve zero waste to landfill in our global manufacturing operations Train 250,000 plumbers and contractors on sustainable products or sustainable installation and recycling best practices EXAMPLE © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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    93 + Thank you! Suzanne Shelton 865-524-8385 sshelton@sheltongrp.com ChristopherHaasen 347-778-2748 haasen@sandz-co.com © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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    94 + MSCI ESG Ratings added ©2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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    95 + Sustainalytics ESG RiskRating added © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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    96 + Refinitiv ESG companyscores added © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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    97 + ISS ESG CorporateRating added © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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    98 + S&P Global ESGScores added © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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    99 + VigeoEiris (Moody’s) ESGAssessment added ©2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.