The ESG Imperative

To provide a dynamic set of ESG Indices to predict, monitor and assess the real-time impact of ESG-driven measures in support of both compliance metrics & competitive insights

…powered by algorithms and math

Context – What is the current state of the state?

1.  ESG disclosure requirements will be closely monitored by the SEC, FTC, your shareholders, advocacy groups, litigation firms and your customers

2.  Operational, financial, and leadership exposures arise from the current ESG framework that may or may not be aligned with corporate strategy or where economic value is currently – or projected – to be derived – requiring alignment regarding disclosures are focused and economic value is created

3.   Internal controls around data quality supporting non-financial disclosures are important, but even more so, mapping non-financial data to economic implications to inform capital allocation decisions will become increasingly critical

4.  Execution around ESG requirements will involve a “dance” between where to pay attention and how to ensure alignment towards economic growth – while strengthening leadership stability against unwarranted advances and activist pressures

Any type of such mandate and regulatory friction catalyzes strategic opportunity

Lots of energy yet less clarity exists regarding the alignment between where ESG indicators are focused and where firms make money today – and are likely to tomorrow… with potentially costly mis-alignment of time and capital

Opportunities, therefore, emerge by converting the compliance focus of ESG towards competitive advantage through:

1. Mapping ESG indicators to specific parts of the business and thereby creating traceability between indicators to specific sources of measurable economic value and thereby converting the non-quantitative nature of many of the ESG measurements to the balance sheet and/or income statement)

2. Understanding trade-offs through event monitoring & simulations regarding ongoing alignment to ESG requirements to both capital decisions and leadership intent