An overview of the Corporate ESG (Environmental, Social, Governance) movement.

1. What is ESG Reporting
1
(and how to get started)

2. “
”
We have a responsibility to help tackle the
climate crisis: as a business, and through
direct action by our brands.
Alan Jope Chief Executive Officer of Unilever
2

3. ESG Should Be a Part of
Every CSR Strategy
3
Corporate Social
Responsibility (CSR)
Self-imposed and regulated efforts to
make a company more socially and
environmentally responsible, typically
under pressure from employees,
consumers, and governments
Environmental, Social,
Governance (ESG)
Led by investors and governments,
ESG typically refers to reporting on
MATERIAL environmental, social,
and governance factors.

4. 4
Environment, Social, and
Governance (ESG) Reporting

5. ESG Definitions
5
ESG
Environmental, Social, Governance
CSR
Corporate Social Responsibility
Scope 1, 2, and 3
Emissions from your business operations

6. ESG Reporting is Growing Rapidly
6
Stanford Social Innovation Review. Corporate Impact Investing in Innovation by Ryan Macpherson,
Claudine Emeott, Ken Gustavsen, & Moses Choi. Published February 24, 2021

7. 7
Do Investments in ESG
Pay Off?
“Achieving the SDGs is probably the
biggest business opportunity that
we’ve ever seen in the history of
mankind. The cost of inaction is
actually higher than the cost of action.
The cost that businesses are incurring
from any single goal is actually more
expensive than the cost of achieving
all of the goals.”
-Paul Polman, former CEO of Unilever

8. Reference: Driving corporate growth through social impact, Deloitte.
5 Ways Setting & Achieving ESG
Targets Helps Businesses
8
Building Resilient, Sustainable
Supply Chains
Enhancing Brand Value
with Key Stakeholders
Creating New Market
Opportunities
Taking Regulatory Relationships
from Reactive to Proactive
Inspiring, Attracting, and
Retaining Top Talent

9. “
”
9
What gets measured, gets managed
Peter Drucker

10. History of ESG Reporting
10
1970
1986
After activists protest against the war in Vietnam and Apartheid in South Africa, Calvert
Investments sponsors U.S. Comprehensive Anti-Apartheid Act, banning new investment in
South Africa. First investment firm to sponsor social activism as a shareholder issue.
1988
James S. Coleman wrote an article in the American Journal of Sociology titled Social Capital in the Creation of Human
Capital that challenged the dominance of the concept of 'self-interest' in economics and introduced the concept of
social capital into the measurement of value.
2006
The United Nations’ Principles for Responsible Investment (PRI) was launched to encourage further development
of sustainable investing
India enacted the first ever Corporate Social Responsibility law.
2014
2000
Kofi Annan launched the Global Compact Initiative — a voluntary corporate-citizenship effort that’s based on a set
of human rights, labor, environmental, and anti-corruption principles. The same year, the Global Reporting Initiative
launched and provided companies with international, independent standards
2015
UN adopted the Sustainable Development Goals to align the world on social and environmental priorities, and
shortly after, the UN Global Compact was launched to help companies contribute to them.

11. Who Owns the ESG
Movement?
11
CONSUMERS
CORPORATIONS
INVESTORS
REGULATORS
Want to improve strategy and
operations while reacting to
employee demands
Want ESG disclosures to manage
climate, civic, and regulatory risk
Want to know if they are
buying from brands that align
with values
Responding to demands of society and
constituents while balancing lobbying efforts
N
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12. ESG
Reporting
12
The practice of companies
disclosing the most
significant economic,
environmental and social
impacts that arise from their
corporate activities, and
thereby being held
accountable for these
impacts and responsible for
managing them.

13. ESG
Frameworks
13

14. GUIDANCE
ESG Frameworks
14
EVALUATION COMPARISON
AGGREGATION
& AUDIT
IMPACT
INVESTMENT
DECISIONS
REGULATION
REGULATION

15. ESG Frameworks for IMPACT
15

16. A Comparison of Frameworks
16
Primary Purpose Audience of
Reporting
Works Well
With
Primary Business User
ISO 26000
Introductory guidance on what is needed to
develop a Corporate Social Responsibility
function
NA NA
Chief Executive, Finance, and Legal Officers
to establish the CSR Function, and then
Head of CSR for early guidance.
Global
Reporting
Initiative (GRI)
Help companies understand what ESG and
CSR factors it can measure and manage,
and guidance how to do so
All stakeholders,
including
investors
SASB, CDP,
UNGC
Chief Finance, Legal, HR, and Sustainability
Officers, primarily managed by Head of
CSR and/or Head of ESG
Sustainability
Accounting
Standards
Board (SASB)
Help companies understand what ESG
factors are material to their business, and
should be disclosed to investors
Primarily
investors
GRI
Chief Executive, Finance, and Legal
Officers, managed by Head of ESG
CDP
Help companies understand how effective
they are are managing water and
greenhouse gas (GHG) emissions, and
helping investors rate and rank them
Primarily
investors GRI Head of ESG, Chief Financial Officer
UN Global
Compact
(UMGC)
Help companies set ESG and CSR targets in
service of the United Nations Sustainable
Development Goals
All stakeholders,
including
investors
GRI
Chief Executive, Finance, and Legal
Officers, managed by Head of CSR
B Impact
Assessment
An overall assessment on all CSR factors
that go into making a business more
responsible
All stakeholders,
primarily
partners and
consumers
GRI, UNGC
Chief Executive, Finance, Legal, HR,
Sustainability, Product, Technology
Officers, and Head of CSR.

17. Example: Unilever
17

18. Getting Started With
ESG Within a Company
18
Step 1: Set Clear
Ownership &
Support
Get clear on
ownership for
leading ESG
reporting, and
ensure there is
support from three
key bodies:
1. Board
2. Investors
3. Executives
Step 2: Build an
ESG Team
Step 3: Decide
on What to
Measure
Step 4: Establish
a Framework
and Decide on
ESG Factors to
be Reported
Step 5: Establish
a Baseline and
Targets
Step 6: Align
Executive &
Board
Compensation
with ESG
Targets
Step 7:
Integrate ESG
Reporting and
Achievement
Across Business
Step 8: Build
Systems to
Automate Data
Capture and
Reporting
Step 9: Get
Audited and
Improve
Processes
Step 10:
Communicate
Progress with
Create
Real-Time
Reports
Find an executive
sponsor and build
a team that
stretches across
strategy and
operation
functions of the
business/
Set strategy by
identifying the
SDGs your
company can
contribute against
Use the SASB
materiality matrix
to decide on
metrics.
Balancing
regulatory needs,
investor pressure,
consumer
demands, and
employee
requirements,
choose a
framework based
on Step 3.
Use guidance from
frameworks (GRI
& UNGC), as well
as public CSR and
ESG reports from
competitors, to
identify your
target.
Use the Science
Based Targets
(SBTi) to set
ambitious targets.
Use tips from
“Enacting Purpose
Initiative” as well
as Competent
Boards to set the
right targets and
build support
Find business
units that have the
most authority
over your metrics,
and work to build
alignment with
them to capture
needed data.
Switch from cost
center to value
creator.
Find the right
vendor and
platform to more
easily track your
metrics.
Based on your
framework and
metrics, find the
right 3rd party to
audit and help you
improve results.
Use the
International (IR)
Reporting
Framework to get
ESG metrics listed
in all other
corporate and
financial reports

19. Deciding What to Measure
19
Future looking
business priorities
SDGs we can impact
by DOING MORE
GOOD as well as
DOING LESS HARM
Things that our business is
best in the world at
Things that our
investors,
stakeholders, and
customers want
+ Analyze all the SDGs, and
look for places where you
can mitigate harm, as well
as places where you can
contribute to support
progress
+ Map your assets, resources, and strengths,
and then brainstorm how each could help
support any of the SDGs
+ Understand your business
strategy, and identify the
ones where CSR and ESG
factors can contribute the
most
+ Look at SASB, GRI, CDP, and B Impact
Assessments to identify what stakeholders
will care the most about

20. Brainstorm Doc: Achieve the SDGs through the 4P’s of your business by identifying ways to
do more good AND do less harm for each of the SDGs
20
Doing good can be
subjective. Mapping your
impact ideas to the SDGs, in
either ways that reduce
harm or create good, will
ensure that your impact
idea contributes to global
progress.
Don’t have an impact idea
yet? For each SDG, ask how
your People, Product(s),
Process(es), and Profits -
that you influence - can be
used to create good or
reduce harm for each of the
SDGs
The World Economic Forum
(WEF) reports that the
value of opportunities
derived from implementing
sustainable products and
delivering United Nations
Sustainable Development
Goals is $12 trillion.
PEOPLE PRODUCTS PROCESS PROFITS PARTNERSHIP
Do More Good Do Less Harm Do More Good Do Less Harm Do More Good Do Less Harm Do More Good Do Less Harm Do More Good Do Less Harm
#1: End poverty in all its forms everywhere.
#2: End hunger, achieve food security and
improved nutrition, and promote sustainable
agriculture
#3: Ensure healthy lives and promote well-being
for all at all ages.
#4: Ensure inclusive and equitable quality
education and promote lifelong learning
opportunities for all.
#5: Achieve gender equality and empower all
women and girls.
#6: Ensure availability and sustainable
management of water and sanitation for all
#7: Ensure access to affordable, reliable,
sustainable and modern energy for all.
#8: Promote sustained, inclusive and sustainable
economic growth, full and productive
employment and decent work for all
#9: Build resilient infrastructure, promote
inclusive and sustainable industrialization, and
foster innovation
#10: Reduce income inequality within and among
countries.
#11: Make cities and human settlements
inclusive, safe, resilient, and sustainable.
#12: Ensure sustainable consumption and
production patterns
#13: Take urgent action to combat climate
change and its impacts by regulating emissions
and promoting developments in renewable
energy.
#14: Conserve and sustainably use the oceans,
seas and marine resources for sustainable
development.
#15: Protect, restore and promote sustainable
use of terrestrial ecosystems, sustainably manage
forests, combat desertification, and halt and
reverse land degradation and halt biodiversity
loss.
#16: Promote peaceful and inclusive societies for
sustainable development, provide access to
justice for all and build effective, accountable and
inclusive institutions at all levels.
#17: Strengthen the means of implementation
and revitalize the global partnership for
sustainable development

21. Lessons from Failure
21

22. Getting ESG Wrong
22

23. The Case Against ESG Reporting
23
HSBC's Stuart Kirk tells FT investors need not worry about climate risk
“What bothers me about this one is the amount of work these
people make me do. The amount of regulation coming down the
pipes. The number of people in my team and at HSBC dealing
with financial risk from climate change.”
HSBC's Stuart Kirk tells FT investors need not worry about climate risk

24. Greenwashing & ESG
24

25. ESG in Crisis
25
Here’s what I’d say: The reason that
you’re confused is because you’re a
single-issue C.E.O., and that’s not the
way of the future. The way of the future is
people and planet, and a fractured
society can’t make anything, including
electric cars.
-Amy Domini, The Rush to E.S.G., With or Without Elon Musk
“Some, like Musk, believe the ratings should reward
companies that do the most for the planet and society.
Others, including firms like S&P that produce the scores,
say they are meant to show how much risk a company's
stock faces from ESG factors.”
- Reuters: “Analysis: Musk's ESG attack spotlights $35 trillion industry confusion”

26. Conclusion
26

27. In Summary
27
1. Social enterprises provide a way of doing business that
protect against negative externalities while creating social
good.
2. Impact investing provides social enterprises the capital they
need to scale, as well as requirements for measuring and
reporting on impact.
3. Climate change, consumer demand, government regulation,
investors, and partnership requirements are forcing
corporations to partner with social enterprises.
4. Frameworks like HCD, System Mapping, Collective Impact,
and the Theory of Change help ensure we create meaningful
partnerships that deliver lasting positive impact

28. Redeeming Your Certificate
of Completion
28
Complete the survey at the end of this section and MovingWorlds will then
provide you more information on obtaining your Certificate.

29. “
”
Unprecedented technological capabilities combined with
unlimited human creativity have given us tremendous power
to take on intractable problems like poverty, unemployment,
disease, and environmental degradation. Our challenge is to
translate this extraordinary potential into meaningful change.
-Muhammad Yunus
29

30. A global platform connecting and developing professionals, corporations, impact
investors, and social enterprises building a more sustainable and equitable planet.
Helping professionals grow in
their careers by engaging
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Enabling social enterprises to
grow capacity and overcome
any challenge
Helping companies achieve
ESG & CSR targets by
engaging and educating their
employees
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31. Thank You
31
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