ESG

ESG

According to recent sustainability surveys of institutional investors globally, nonfinancial environmental, social, and governance (ESG) disclosures have drastically increased in importance meaning that nonfinancial performance has played a pivotal role in driving investment decision processes over the past 12 months.

According to recent sustainability surveys of institutional investors globally, nonfinancial environmental, social, and governance (ESG) disclosures have drastically increased in importance meaning that nonfinancial performance has played a pivotal role in driving investment decision processes over the past 12 months. The rapid demand for transparent sustainability reports creates a growing disconnect between investor sentiment focusing on ESG and the availability of robust and standardized nonfinancial data from corporates.

On 7 March 2018, the European Commission released an action plan for financing sustainable growth in an effort to create a unified EU classification system (‘taxonomy’), introduce investors’ duties and disclosures, meet low-carbon benchmarks and provide more transparent information to the markets.

Recently, in March 2021, the EU disclosure regulation came into effect and multiple additional frameworks to foster green finance (MiFID II, UCITS, AIFMD, IDD, Solvency II) and sustainable growth are expected to be implemented before or by the beginning of 2023.

Globally, the pace of ESG recognition and implementation is picking up.

In the US, ESG investing continuous to rapidly increase making it the world’s second major market for sustainable finance.

As a result, investors and corporates globally are actively seeking advice on the implementation of (voluntary) ESG best practices and are struggling to navigate ESG standards and regulations such as the GRI, SASB, TCFD, or the UN PRI.

The increasing demands from investors and the evolving regulatory frameworks that aim to assess ESG performance and impose sustainability obligations create challenges for corporates and financial services firms:

  • Evolving regulatory landscape: Firms need to stay engaged with multiple regulatory and supervisory authorities to understand expectations and specific targets.
  • Understanding the baseline: Firms require expertise and commitment to gain an understanding of common ESG expectations of investors.
  • Taking a long-term view: Firms need to consider ESG risks in all business decisions in order to avoid reputational risks
  • Firm-wide adoption: Firms need to ensure widespread understanding of risks and responsibilities and prioritize firm-wide adoption using educational tools
BlackRock announcement

This is where BRYTER comes in.

BRYTER helps organisations tackle these challenges in a firm’s journey towards operationalizing their ESG strategy each step of the way.

Identify risks

With BRYTER ESG Scoring solutions organisations can identify potential ESG risks and opportunities based on criteria such as sector and jurisdiction. This enables organisations to gather data from across the organisation to gain an understanding of current shortcomings and to take steps to improve the overall ESG rating.

Stakeholder Management

With BRYTER, organisations can customize stakeholder communication solutions to better understand their ESG targets. To meet investor needs, organisations can tailor the reporting to include preferred criteria and detail while maintaining full control over the information shared.

Monitoring

With BRYTER, organisations can keep track of the fast-evolving regulatory landscape and be aware of regulatory changes, expectations and targets within their jurisdiction or industry. By staying informed, business can respond to requirements and adopt new business policies faster.

Reporting

With the BRYTER ESG Reporting Hub organisations can seamlessly channel environmental, social, and governance key performance indicators to one centralized platform. The securely stored performance data feeds into the automated ESG report generation process, sustainability strategy monitoring features, and data visualization dashboards.

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