Are you looking to accelerate your sustainability journey?
See how we can help.
See how we can help.
Products
Materiality
Impact MaterialityFinancial MaterialityDouble MaterialityCSRD Double MaterialitySocial Impact
Social ImpactAnswers to common questions that our clients are asking.
Didn’t find the question you were looking for?
While regulatory requirements and enforcements vary around the world, it is universally expected that mandatory disclosures will become increasingly prevalent. That’s why it’s important to start benchmarking performance now – ideally against a globally recognized framework like the World Economic Forum’s Stakeholder Capitalism Metrics. This will protect your company’s market position while local regulations continue to evolve – and will also give you a robust model for mitigating compliance risks.
Surveying beneficiaries is a great first step, however, they can't offer the deep insight that you need to make service decisions or secure funding. The issue with surveys is that they ask questions at a single point in time, making it hard to prove long-term impact and often manual which can lead to inconsistencies that compromise the integrity of the data.
ESG stands for Environmental, Social, and Governance.
Starting your reporting journey today is one of the best ways to show your commitment and dedication to ESG transparency standards, and there's no need to wait for perfection before beginning - metrics can always be improved over time. Plus, there is likely a great deal of relevant work your company is already doing. ESG is about making these activities visible to the market. Socialsuite helps you find those quick wins, then we talk about how you can progress and improve your ESG credentials over time.
ESG is a set of criteria used to evaluate a company's performance in areas related to environmental sustainability, social responsibility, and corporate governance.
The days of investors focusing solely on financial statements are long gone. If you want to attract retail investors, institutional investors or fund managers, you’ll need to meet ESG criteria. Society, investors, consumers and employees are expecting companies to grow in a financially sustainable, yet environmentally viable way. ESG isn’t just used by socially conscious investors to screen companies prior to investing, it’s also looked at by customers, consumers and employees when they’re making decisions about what companies to get behind. ESG is a global priority, so if ESG is not a priority for your business, ask yourself why.
ESG is important for investors because it helps them to assess a company's overall risk and potential long-term value, taking into account not just financial factors but also social and environmental considerations.
Action on ESG is essential for companies seeking investor dollars, regulatory approvals, and the social license to operate. As companies, large and small, face increasing demands from their stakeholders, ESG disclosure is officially no longer a ‘nice to have’. Under growing pressure from government regulators, investors, customers and employees; companies must look to understand the economic realities of ESG – and its impact on people, planet and prosperity.
Each of these frameworks offers a unique perspective on ESG issues and can be used by investors and companies to guide their ESG practices. Ultimately, the choice of framework depends on the specific needs and goals of the user.
According to the Global Sustainable Investment Alliance, as of 2020, total assets managed under responsible investment strategies reached $35.3 trillion globally, a 15% increase from 2018. A survey by the CFA Institute found that 72% of global institutional investors consider ESG factors when making investment decisions.
ESG criteria take into account non-financial factors such as a company's impact on the environment, treatment of employees, and ethical business practices, while traditional financial metrics focus primarily on financial performance and profitability.
Some common ESG factors that investors consider include a company's carbon emissions, labor practices, diversity and inclusion policies, board structure, and executive compensation.
Investors can incorporate ESG factors into their investment decisions by using ESG ratings and rankings, engaging with companies on ESG issues, and investing in ESG-focused funds and products.
When we talk about social outcomes measurement, we refer to an evidence-based process that assesses how well a program has achieved its intended results.
ESG integration involves considering ESG factors alongside financial metrics in the investment process, while ESG screening involves using ESG criteria to exclude certain companies or industries from the investment universe.
Impact investing is an investment strategy that seeks to generate both financial returns and measurable positive social or environmental impact.
Yes, ESG investing can generate competitive financial returns, as companies that perform well on ESG criteria may be better positioned for long-term success.
No, ESG investing is not only for socially responsible investors. It can be a valuable strategy for any investor looking to manage risk and maximize long-term returns.
Yes, companies with poor ESG performance can improve their ESG ratings by implementing policies and practices that address environmental, social, and governance issues.
ESG ratings agencies evaluate companies based on a range of factors related to environmental, social, and governance issues, using both quantitative and qualitative data.
Companies can improve their ESG ratings by implementing policies and practices that address environmental, social, and governance issues, and by being transparent and communicative about their ESG performance.
Yes, ESG investing can lead to positive social and environmental outcomes, as investors can direct capital toward companies that are making a positive impact in these areas.
ESG is a key component of sustainable investing, which seeks to generate long-term value while also promoting social and environmental sustainability.
There are a growing number of regulatory requirements related to ESG, particularly in Europe, where the EU has established a taxonomy for sustainable finance and other ESG-related regulations.
Engagement is an important part of ESG investing, as investors can use their influence to encourage companies to improve their ESG performance and address sustainability issues.
According to a study by the Governance & Accountability Institute, which analyzed the S&P 500 companies, the percentage of companies publishing sustainability reports rose from just 20% in 2011 to 90%+ in 2022. Furthermore, a survey by the CFA Institute found that 92% of global institutional investors integrate ESG factors into their investment analysis and decisions.
ESG (Environmental, Social, and Governance) factors are used to evaluate a company's sustainability and social impact, and are primarily focused on assessing the risks and opportunities associated with a company's operations, reputation, and long-term financial performance. ESG factors are typically measured through disclosure frameworks and sustainability reports, and are used by investors and other stakeholders to evaluate the sustainability and social impact of companies.
Outcomes measurement, on the other hand, is a broader concept that refers to the process of evaluating the effectiveness of programs or interventions in achieving their intended outcomes. Outcomes measurement is commonly used in the context of social and environmental programs to evaluate the impact of initiatives such as poverty alleviation, education, healthcare, or environmental conservation. Outcomes measurement focuses on evaluating the actual results of programs, such as improvements in health, reductions in poverty, or increases in environmental conservation, and is typically measured through data collection and evaluation methodologies.
While ESG factors and outcomes measurement are related in that they both evaluate the social and environmental impact of organizations, they are fundamentally different concepts. ESG factors are used to evaluate the sustainability and social impact of companies, while outcomes measurement is used to evaluate the effectiveness of social and environmental programs.
If a nonprofit organization wants to track outcomes, it needs to take several considerations into account. Here are a few:
While survey tools can be useful for collecting data, they may not be sufficient for tracking ESG or outcomes. Here are a few reasons why:
Outputs are the services, programs and support your organization provides - the activities (or the what) that enable outcomes. Whereas Outcomes refers to the changes that happen as a result of your program, activity or service. They are mostly characterized as a change in circumstance, knowledge, skill, behavior or attitude.