Rational Sustainability

ESG. Going beyond the acronym.

Environmental. Social. Governance.

We believe equitable well governed companies, that take care of their people, customers, partners, and communities will have the greatest impact on the 21st Century economy.

While this idea is not revolutionary, it’s formal application is recent. The ideological and largely environmental foundations of ESG spawned in the mid 1990’s. Heightened attention on environmental impact brought by the United Nations in the 1992 Rio Earth Summit and the subsequent 1997 Kyoto Protocol, saw 192 nations pledge to limit and reduce greenhouse gas emissions with agreed individual targets. In that same year, the Global Reporting Initiative (GRI) was founded as an:

“independent, international organization that helps businesses take responsibility for their impacts, by providing them with the global common language to communicate those impacts.”

It wasn’t until the early 2000’s that ideology met with institutional adoption With the spectacular failure of Enron, America’s 6th largest corporation at the time, and other accounting scandals of the early years of the millennium. The 2002 Sarbanes-Oxley Act was passed to combat rampant corporate governance failures. This legislature aimed to provide greater transparency into internal standards and independent audits of publicly listed companies. Included within the Act are now commonplace ESG variables such as: transparent third party accounting, disclosure requirements, shareholder rights and transparency, whistleblower protections, and others.

This unprecedented headlined risk for traditionally risk-averse entities put a greater fiduciary responsibility on asset managers and service providers to create effective screening parameters for trades and investments. In 2004 the term ESG was coined as partof the “Who Cares, Wins – Connecting Financial Markets to a Changing World” paper publshed by the United Nations with 20 endorsing signatories from the financial services industry. Currently, some $40 trillion in assets under managementa are guides by ESG principles – representing roughly one third of all assets under management globally.

Financial Risk Management & Ratings

Given ESG’s adoption was driven by failures of publicly listed companies, it’s not surprising that the main facets of ESG service offerings rest in analysis of public records and filings. The data is used to generate risk models that act as screens for investments, such as selective indices and no-trade lists, or for ratings that add third party assurances to secure debts and obligations.

Compliance & Public Markets

With the formation of the TCFD in 2015 and added pressure put on exchanges and underwriters to account for environmental risks, ESG has become a prerequisite for public funding. Positioning for fundraising at all levels from startup to scale up, now increasingly involves understanding a company’s ESG risks and investment prospects.

Beyond Ratings, Towards Value

Implementation of ESG principles have been shown to create multiple avenues of value. DéWarrior uses a proprietary PACE framework to define and drive strategic ESG value objectives.

01

People

Dedication to transparent governance structures and inclusive social frameworks create happier, more productive teams with lower costs of talent acquisition and retention.

Building the culture from the foundation.

02

Alignment

Genuine attention to people and planet, before profit creates value-driven B2B and B2C connectivity which results in longterm customer and partner acquisition and retention.

Connecting beyond the product.

03

Circularity

Energy, resource efficiency, and focus on waste reduction and recovery create compounding economic realities.

Optimising at the intersection of nature and innovation.

04

Evaluation

360-degree security controls create defined parameters for risk exclusion and bypass of unsound partners, investments, personnel, and M&A activity.

Longevity through risk-discovery & mitigation.

Our Approach and Assessment Model

Approach: Rational Sustainability

Operationalising Non-Financial metrics and KPIs are a crucial litmus test for C-Suite leadership and corporate boards. Fully understanding the dynamic balance of a company’s ESG strategy creates informed, data-backed decisions in all facets of the organisation.

The DeWarrior approach combines traditional operational sustainability baselining and data analysis with sector-specific management consulting expertise, aligning stakeholder value, operational performance and sustainable growth.

Achieving client objectives within rapidly evolving standards is a challenge we pride ourselves on. Our approach is ever-centred on helping our clients set the standards and drive tangible value beyond the peripheral compliance requirements.

Our approach’s starting point is based on each client’s specific operational situation, liquidity scenarios and individual targets, creating a realistic sustainability roadmap with full buy-in from operational and implementation teams.

Operational Performance Analysis

Exceeding the norms of tomorrow requires pushing the limits of what’s possible today. We value innovation, disruptive outlooks, and radical technology. We encourage our clients to experiment and are with them every step of the way to determine how innovation could accelerate their growth.

Our Operational Performance baseline analysis is designed to illustrate current risks, opportunities and necessities of a company and derive useful Financial & Non-Financial KPIs to describe them. We place emphasis on technological and organisational innovation variables in all categories of Environmental, Social, and Governance frameworks. We record and provide continuous observation of all analysed variables across categories to ensure our clients understand where value is derived. Optimising for cost, efficiency, and ever changing goals and standards.

Our ESG Service Offering

ESG Materiality & Risk Assessment

DéWarrior supports corporations and mid-size companies in developing the tools and data-pools necessary for the establishment of their non-financial risk profile and mitigation strategy, through statistical materiality analysis and operational modeling.

ESG Operational Implementation

We believe that success of non-financial corporate risk management is predicated on a strong buy-in from operational departments performing the day-to-day changes. Post risk assessment & materiality, we work closely with internal stakeholders to align strategic and operational targets.

For our ESG Service Offering please click here or contact our head office for an appointment with a DéWarrior expert.

How can we help you?