How to Pursue a Sustainable Return
The COVID-19 pandemic is making the business case for the relevance of Environmental, Social, and Governance (ESG) factors in ensuring companies’ resilience. To be able to bounce forward from the pandemic, it is paramount to scale-up the adoption of sustainable investing. For this reason we are inviting companies and industry federations to join the European Pact for Sustainable Industry. Join the webinar “Which ESG metrics will survive the COVID-19 outbreak?” on 9th July to learn more.
The COVID-19 outbreak has highlighted the financial materiality of Environmental, Social, and Governance (ESG) factors. Failing to integrate ESG factors into investment analysis and decision-making puts at risk not only business operations, but also the well-being of employees, customers, and society at large. While we might be leaving the health crisis behind us, businesses, industry federations and EU policymakers still have to grapple with its economic fallout. According to Christine Lagarde, President of the European Central Bank, the economy of the Eurozone is expected to shrink by 8 to 12 per cent this year due to the pandemic.
While the European Commission is proposing €750 billion recovery package – called Next Generation EU – now it is time for companies to act and do their part. It is in this context that CSR Europe is calling on businesses and industry federations across Europe to join the European Pact for Sustainable Industry to scale-up the adoption of sustainable investing.
Under the umbrella of the Pact, companies can collaborate constructively, actively and on an ongoing basis with their industry federations to create value to society by re-orienting capital flows towards more sustainable activities. How? By engaging value-chain peers, competitors, customers, and experienced stakeholders, with whom to build collective intelligence and methodologies to identify, not only financial indicators, but also ESG factors that are material for the industry.
At the same time, companies and industry federations will be able to engage in a systematic dialogue on forthcoming policy initiatives linked to the EU Green Deal and Industrial Strategy and aimed at reaching the Sustainable Development Goals (SDGs), especially: “Good Health and Well-Being” (SDG 3); “Decent Work and Economic Growth” (SDG 8); “Industry, Innovation and Infrastructure (SDG 9); “Reduced Inequalities” (SGD 10); “Sustainable Cities and Communities” (SGD 11); “Climate Action” (SDG 13); “Peace, Justice and Strong Institutions” (SDG 16).
Companies and industry federations who join the Pact will have the opportunity to benefit from the consolidated experience of our community of practice on “Total Impact Disclosure”. CSR Europe is already supporting companies in moving beyond the simple financial disclosure to embrace social, environmental, climate and tax indicators through a materiality assessment involving relevant stakeholders. Companies who are interested in learning more, are invited to join the webinar “Which ESG metrics will survive the COVID-19 outbreak?” on 9th July.