How to Connect ESG Metrics to Your Executives' Remuneration

Be it under the pressure of stakeholders or to showcase commitment to sustainable business practices, an increasing number of companies have linked Economic, Social and Governance (ESG) metrics to their executive remuneration. While this is a valuable strategy to accelerate sustainability performance, doing so may present several challenges in the process from decision making to implementation. This article outlines the considerations to account for in the process and provides three tips for a successful integration of ESG targets in executive remuneration.

Updated GRI Standards: What Are the Implications for Materiality?

Last October, the Global Reporting Initiative (GRI) announced the biggest update of its standards since 2016. Beyond legal requirements, the GRI has been identified as one of the most comprehensive and internationally recognized sustainability standards setter for corporate reporting. Scheduled to be applicable by 2023, these changes require companies to increase their level of transparency and to dedicate further resources into non-financial reporting. One of the key updates is the introduction of sector standards, providing additional guidelines for comparability of companies from the same industries. Another important change in the GRI Universal Standards is the revised approach on how organization should conduct their materiality assessment. This article focuses on the proposed changes and what it means for companies which have selected the GRI Standards as their ESG reporting framework.

Activating Materiality to Accelerate ESG Performance

How can a materiality assessment be used to effectively accelerate a company’s sustainability performance? On September 23rd, Finch & Beak organized a webinar focused on materiality activation: transforming the materiality assessment from a reporting tool to the steppingstone for activation of company’s sustainability program. In this article, you can find a summary of the session including three tips for a successful activation of materiality.

Leveraging Double Materiality to Identify Emerging ESG Risks

If there is one thing that the COVID-19 pandemic has demonstrated, it is that society can face major challenges, virtually overnight. Companies need to have a sharp view on both short-term impacts and risks further on the horizon in order to steer their business and build resilience to deal with change. Capturing emerging risks in the ESG approach is therefore essential. Additionally, as of 2023, the EU Commission requires companies to apply the concept of “Double Materiality” as part of its new Corporate Sustainability Reporting Directive (CSRD). One of the main questions that therefore arises is: how do you ensure your materiality assessment covers these new perspectives on materiality?

ESG Acceleration Webinar: Materiality Activation

This webinar dealt with the challenge of generating real change while implementing sustainability. Together with guest speaker Rebecca Dunn, Head of Sustainability at Spectris, we explored how to transform the materiality assessment from a reporting tool to an accelerator for the activation of your sustainability program.

Evolving Materialities for the Construction Sector

The construction sector is a continuously growing industry led by rising urbanization and global population increase: In 2050, about 68% of the world’s population will live in urban areas. These trends will increase the pressure for construction companies to improve the durability and efficiency of their infrastructures. Incorporating new digital technologies will be key to face these challenges in the future.

European Real Estate’s Underleveraged ESG Opportunities

As sustainability-labelled financing is expected to surge in 2021, companies are gearing up to get their fair share of it. Real estate, an industry that is typically capital-intensive, has a particularly great opportunity to tap into this source of financing. European real estate companies, however, appear to be lagging behind on ESG performance compared to their global peers, and may risk losing out.

ESG Acceleration Webinar: Forward-Looking Materiality

During this webinar, we explored how to apply the materiality assessment as a tool to capture (emerging) ESG risks and opportunities, as a driver for future strategy and risk mitigation, and how to align materiality with enterprise risk management. Special guest speaker was Suzanne Westlake, Head of Corporate Responsibility & Corporate Affairs at Ocado Group.

Sign up for IMD’s Winning Sustainability Strategies online program

Designed to integrate ESG in your corporate strategy, the Winning Sustainability Strategies online program from IMD Business School in Lausanne teaches how to build a strong business case for sustainability and how to develop opportunities for innovation. Due to its practical approach, the program has proven to be highly appreciated by executive and senior management level participants. Moreover, it is suitable for larger groups of corporate participants to obtain a more thorough understanding of doing well by doing good.

Winning Sustainability Strategies Online Program: February-March 2021

The second edition of the IMD Winning Sustainability Strategies Online Program is a “how-to” guide that offers a very pragmatic take at how to integrate sustainability in your corporate strategy – while ensuring it has a strong business case. The program is aimed at business executives, strategy practitioners and sustainability professionals, who are looking to harness sustainability innovation and its strategic implications. Facilitated by the authors Jan van der Kaaij, Managing Partner of Finch & Beak, and IMD professor Benoit Leleux, this edition starts on 22 February 2021.