#GovernanceMatters

[esgdata1992]

Current ESG Trends to Watch for 2024

ESG has become more necessary than ever for businesses and investors as the world struggles with climate change, social injustice, and global health problems. If companies embrace ESG trends in 2024, they can attain a remarkable brand reputation, gain tremendous customer loyalty, and reduce risk while contributing to a more sustainable future. Apart from financial gains, investors increasingly seek investments which are in accordance with their beliefs.

The rising significance of ESG has drastically altered how businesses and investors think about sustainability. ESG factors were once widely considered “nice-to-haves” rather than essential factors in company and investment choices. Yet, as ESG has gained popularity, businesses and investors are adopting a more comprehensive strategy, integrating ESG factors into their business plans and decision-making procedures.

This post will explore the burgeoning ESG future trends likely to influence business and investing in 2024. We will look at the most recent advancements in ESG and their effects on organizations and investors, from broadening ESG criteria to using new technologies for ESG research. Companies and investors may position themselves for long-term success while helping to create a more sustainable and fair society by staying ahead of these trends.

Read our New Blog: Role of Climate Data in Assessing Portfolio Risk

ESG Trends to Follow In 2024

1- A Data-Driven Approach to ESG

The use of data by businesses and investors to assess and manage their environmental, social, and governance (ESG) performance has become increasingly common over the last few years. In 2024, this trend is expected to continue, with a focus on data-driven ESG initiatives across a variety of industries.

Among the major forces influencing these ESG trends in 2024 are:

The Requirement for More Accurate and Reliable ESG Data: ESG data solutions are becoming increasingly important in decision-making for investors and businesses. As a result, there is now a higher need for ESG data that is more accurate and reliable.

Technology and Data Analytics Advancements: Collecting, analyzing, and reporting ESG data is now simpler due to technological and data analytics developments. This has contributed to the shift toward an ESG strategy that is data-driven.

Stakeholder and Regulatory Pressure: Investors and organizations are under growing pressure from authorities and stakeholders to report on their ESG performance and consider ESG factors when making investment choices. This has contributed to the shift toward an ESG strategy that is data-driven.

Possibilities for Enhanced Performance and Risk Administration: Companies may discover opportunities for ESG performance improvement and enhance ESG risk management by using a data-driven approach to ESG.

2- Robust Global Frameworks Promoting Transparency

The necessity for more robust global frameworks to address environmental and social issues, including climate change, socioeconomic inequality, and human rights breaches, has become more widely acknowledged in recent years. As a result, a push for more accountability and transparency has been made in several industries, including banking, corporate governance, and supply chain management.

In 2024, this pattern is anticipated to continue as stronger international frameworks are created and implemented to address these issues. Among the major forces influencing these trends in ESG are:

Greater Understanding of Social and Environmental Risks: The risks to the environment and society that the world is experiencing, such as socioeconomic inequality, climate change, and human rights breaches, are becoming more widely understood. There is a higher need for accountability and transparency to address these concerns.

Putting More Emphasis on ESG Factors: Investors have begun considering environmental, social, and governance (ESG) factors when making investment decisions as they attempt to control risk and achieve sustainability over the long term. This has provided the impetus for more transparency and sharing of data relating to ESG.

Encourages Greater Corporate Accountability: Companies are under more and more pressure to take accountability for their social and environmental repercussions and to be open and honest about their performance. This has prompted calls for increased accountability and transparency in supply chain management and corporate governance.

The Development of Global Standards and Regulations: Global standards and frameworks, such as the Paris Agreement on climate change and the United Nations Guiding Principles on Business and Human Rights, are becoming increasingly necessary to solve environmental and social concerns. In addressing these challenges, these frameworks offer a foundation for increased accountability and transparency.

Explore more: Biodiversity: The Hidden Threat to Investors

3- A Strong Push for Impact Investing

Most investors are looking to match their investments with their beliefs and social or environmental objectives, which has given rise to the movement known as impact investing. Impact investing is investing in businesses, nonprofits, or funds to achieve a measurable social or environmental effect.

As investors become more conscious of the environmental and social concerns confronting the world and strive to utilize their assets to make a positive change, impact investing has gained popularity in recent years. With a strong push for impact investment across various industries and asset classes, this ESG market trend is anticipated to continue in 2024.

Among the major forces influencing this trend are:

Growing Demand for Ethical and Sustainable Investing Choices: Investors are looking for possibilities to make investments consistent with their morals and environmental or social objectives. As a result, there is an increase in demand for ethical and sustainable investing solutions, such as impact investments.

Increasing Understanding of the Global, Social, and Environmental Concerns: The urgency of addressing global issues, including social injustice, climate change, and access to healthcare and education, is becoming more widely acknowledged. Impact investing offers a method for investors to support these initiatives while also earning profit.

Enhancing the Availability of Impact Investing Options: The variety of impact investment choices accessible to investors has increased as impact investing has grown in popularity. Among them are impacted funds, green bonds, and other investment options focusing on the social factor.

Possibility of Substantial Financial Gains: Impact investment has been proven to offer the potential for high financial returns, particularly over the long term. This has made drawing investors from a broader spectrum easier for the area.

Read More: Uncovering Hidden Risks: The Role of Value Chain Assessment in Modern Investing

4- Approaching Net-Zero Holistically:

It is becoming more apparent that a holistic strategy is required to solve the complex challenges of decarbonization as businesses and governments commit themselves to reach net-zero emissions. With this strategy, the social, economic, and environmental effects of emissions reduction initiatives are considered together with the complete lifecycle of emissions, from production through end-of-life disposal.

A comprehensive approach to this trend in ESG requires a variety of techniques and initiatives, including

Switching To Renewable Energy: Moving away from fossil fuels and toward renewable energy sources like solar, wind, and geothermal is crucial for attaining net-zero emissions. This can entail investing in infrastructure for renewable energy sources and putting regulations into place to encourage the switch to clean energy.

Decarbonizing Supply Chains: Reducing emissions across the whole supply chain is necessary to achieve net-zero emissions and decrease emissions from direct activities. This may entail collaborating with suppliers to increase sustainability standards and minimize emissions, as well as considering the carbon footprint of raw materials and transportation.

Putting in Place Carbon Trading and Pricing Mechanisms: Carbon pricing tools like carbon taxes or cap-and-trade programs can encourage businesses to invest in greener technology and promote emissions reduction.

Promoting the Circular Economy’s Principles: Reducing waste and recycling or reusing materials are critical components of a circular economy strategy to reduce production and consumption’s adverse environmental effects. Implementing policies to encourage circularity and revamping goods and processes to be more circular might be part of this.

Investment in Carbon Removal Technologies: The employment of carbon removal technologies, such as direct air capture or carbon sequestration to remove carbon dioxide from the atmosphere, may be necessary to reach net-zero emissions.

Explore More: ESG Contriversies Screening

5- Advancing Sustainability Through 5G

The introduction of 5G technology has the potential to improve sustainability initiatives in various ways. The most recent cellular network technology, 5G, provides faster speeds, reduced latency, and more capacity than earlier generations. These ESG technological trends may significantly affect sustainability in the following

Reducing Carbon Emissions and Enabling Remote Work: By enabling more widespread remote work, 5G technology can reduce everyday commuting and the corresponding carbon emissions. Also, this may aid in easing traffic congestion and enhancing urban air quality.

Enabling Smart Cities and Minimizing Resource Usage: Smart cities employ real-time data to optimize resource usage and lower waste, and 5G technology can help make this possible. Smart waste management systems, for instance, have potential to reduce the quantity of garbage dumped in landfills while reducing pollutants and traffic congestion.

Facilitating Precision Farming and Minimizing Environmental Effect: Precision agriculture, which uses real-time data to enhance agricultural yields and lessen environmental impact, can also be made possible by 5G technology. Farmers may maximize their use of water, fertilizer, and other resources, eliminating waste and having a minimal environmental impact, by employing sensors and other IoT devices connected via 5G networks.

Promoting Renewable Energy While Decreasing Reliance on Fossil Fuels: By facilitating the grid integration of more renewable sources, 5G technology can aid in the transition to renewable energy. To increase solar and wind power usage, 5G networks, for instance, can enable more effective energy storage and delivery.

Accelerating Communication and Computation: The use of 5G ensures faster communication, computation and analysis of ESG data and news, promoting up-to-date ratings and assessments as well as documentation of significant developments.

Explorer More: ESG Active Ownership 

In Conclusion,

we anticipate several new ESG trends to emerge in 2024 that will influence how businesses and investors tackle environmental, social, and governance challenges. These trends include the expansion of ESG criteria, a stronger emphasis on social issues, the inclusion of ESG in investment decisions, the advancement of sustainability through 5G, a comprehensive approach to net-zero, a strong push for impact investing, more robust international frameworks with an emphasis on transparency, and a path to ESG that is data-driven.

To stay on top of the game, companies and investors must adapt and respond as these emerging ESG trends change. They may benefit from Inrate’s ESG consulting by learning to manage these developments and creating efficient plans for handling ESG opportunities and risks. With over 30 years of experience in ESG consulting and sustainable financing, Inrate offers indispensable expertise when it comes to professional advice on ESG-related matters.

ESG factors will undoubtedly become more significant in decision-making as we progress toward a more sustainable future in various industries. Companies and investors may position themselves for long-term success and sustainability by keeping up with new ESG trends and collaborating with experienced ESG consultants like Inrate.

[fancy-dapper-fox]

April Post on Heavy Topic

Hello, Today I am posting about how Illegal, unreported, and unregulated fishing affects Coral Reef Health. I will also be briefly touching on how law enforcement “compliance” plays into this. I am in a Marine Science Club and am using the club’s monthly project of creating a post about tropical conservation concerns as an opportunity to share information I’ve researched. If anyone reads my post and has additional info, please share! Also, the information I give is really summaries of what I’ve looked into so I will be providing links to my sources. 

So the first thing I want to talk about is what exactly coral reefs are and what makes them so important. According to the International Coral Reef Initiative there are over 100 species of coral reef (that we’ve discovered so far) and despite how they cover less than 1% of the ocean floor they support an estimate of over 25% of all marine life. The coral reefs support that marine life by providing suitable habitat areas – they minimize waves and current impact and provide safe breeding and resting grounds. Something to also remember is that they don’t just support marine life, they also support human life – mainly people who live on coastlines and rely on income from fishing and tourism (I’ll touch more on this later). The human reliance on the coral reefs can be positive as it helps monitor marine life and prevent overpopulation but it can also bring a harmful issue – IUU. 

So what exactly is IUU? The International Maritime Organization (IMO) describes it as “IUU fishing takes advantage of corruption and exploits weak management regimes, in particular those of countries lacking the capacity and resources for effective monitoring, control, and surveillance (MCS). IUU fishing threatens marine biodiversity, livelihoods, exacerbates poverty, and augments food insecurity.” and the U.S Department of State office of Marine Conservation gives a very important point that “IUU fishing can take on many forms, ranging from small-scale vessels misreporting their catch or straying into a neighboring country’s waters, to coordinated efforts by transnational crime syndicates. IUU fishing can also undermine port and maritime security, as criminal elements may use similar trade routes, landing sites, and vessels as used for smuggling migrants, and trafficking arms, drugs, and other contraband.” 

To make this information a bit easier to understand: IUU fishing uses law enforcement gaps to overfish and opens routes for even more criminal activity. IUU fishing affects the environment and all living things in it (even humans are not immune to this activity). 

Illegal, Unreported, Unregulated fishing threatens the reefs health because most illegal fishers are not concerned about the damage they do – they destroy coral to get to fish, they spill chemicals by accident near the reefs, they deplete the areas of algae which is a plant coral has a symbiote relationship with. 

All this IUU and the damage that happens during it creates a domino effect of health problems for the coral reefs making them inhabitable which drives the marine life away which in turn ruins the environment. 

Something I want to note really quick is a vocab term that is coming up --- MPA's : Marine Protected Areas

“Many MPA experts consider insufficient enforcement to be one of the primary drivers of non-compliance in MPAs (Iacarella et al. 2021), and gaps in enforcement often result from a deficient budget (Kuempel et al., 2017). Non-compliance is likely to become an increasingly widespread problem for MPAs if we prioritize MPA coverage over MPA quality. A 2017 study examining data of hundreds of MPAs from every temperate and tropical ocean basin found that 65% of managers describe their budget as inadequate and 91% describe their staff capacity as “below optimum” (Gill et al. 2017). Therefore, to make MPAs as effective as possible, we must focus on adequately financing and staffing them to facilitate high enforcement and compliance levels.” This quote is from The Marine Conservation Institute. Even thought the information is a bit dated I thought it was a good idea to include this piece of information. Now when I ay law enforcement “compliance” I am specifically talking about certain people in the law enforcement departments compliance to remain ignorant towards the importance of monitoring MPA. A lot of times patrols don’t deem certain areas to be of importance or law enforcers like judges don’t see that protecting “some plants and fish” is important enough to dish out punishment to IUU people. 

So because of negligence, ignorance, or even just minor oversights a lot of IUU people get away with their illegal activity. 

I'm of course not going after or attacking every single law enforcement official because quite a few of them do take their work seriously but realistically it only takes a few "bad" law enforcers to creates gaps in the system that illegal fishers can take advantage of.

Not to mention there are publicized cases on law enforcement officials who have been suspected or confirmed of taking bribes so that people slip through the cracks of the justice system.

Now I'm going to talk a bit more on how/why humans are affected by the decline of Coral Reef Health:

Coral ecosystems protect coastlines from storms and erosion, provide jobs and income to local economies from fishing, recreation, and tourism. And in addition to that they are a source of new medicines, and they have cultural significance.

The continued decline of coral reef ecosystems will have significant social, cultural, economic and ecological impacts on people and communities in the U.S. and around the world.

Of course, not all hope is lost - it's not all doom and gloom.

There are many conservation projects + programs being worked on to help the coral reefs. There is the Coral Reef Alliance (CORAL), the NOAA Coral Reef Conservation Program, The Ocean's Harmony no-profit organization and many more.

There are even volunteer programs: (These are just a few, I will attach a link with a list of more)

Coral Reef and Diving Project – Thailand 

Coral Reef Restoration in Bali

Great Barrier Reef Conservation in Australia

Caribbean Reef Diving Project in Carriacou, West Indies

Island Volunteering Project in the Maldives

Coral Reef Restoration Volunteer (Volunteer world website)

And you don't have to volunteer or work in the marine science or conservation field to help!

You could repost/like/share info on online platforms. You can fact check articles you read. You can involve yourself in voting for environment protection bills. You can watch live videos of researchers (Like nautiluslive on Instagram) You can go to community events. Report suspected IUU when you see it (Stay safe though). You could buy books, clothing, art, jewelry (like fahlo) to support conservation programs financially. You can teach your kids, friends, family (pets?) to spread awareness. YOU CAN EDUCATE YOURSELF.

Before I end my little ted talk I do want to bring attention to one more group who has worked hard on the conservation of Coral Reefs:

The Queensland Indigenous Women Rangers Network (QIWRN).

Ever since they launched in 2018 the organization has worked as representation for Aboriginal and Torres Strait Islander women in Queensland. They have worked on their conservation efforts as rangers, mapping land and tracking changes within the local ecosystems.

I hope everyone who reads this find it inspiring and educational.

Sources: 

NOAA's Coral Reef Conservation Program (CRCP) - Who We Are 

Understanding Illegal, Unreported, and Unregulated Fishing | NOAA Fisheries 

Coral Reefs: Status, Risks and Outlook | World Resources Institute (wri.org) 

Why are coral reefs dying? (unep.org) 

Four reasons illegal, unreported and unregulated (IUU) fishing affects us and what we can do about it | FAO Stories | Food and Agriculture Organization of the United Nations 

Illegal, Unreported, and Unregulated (IUU) Fishing (imo.org) 

Illegal, Unreported, and Unregulated Fishing - United States Department of State 

Saving the Coral Reefs: 9 Innovations in Coral Reef Restoration (treehugger.com) 

Meet the Indigenous Women Leading Conservation Efforts in the Great Barrier Reef | Condé Nast Traveler (cntraveler.com) 

Benefits of coral reefs | ICRI (icriforum.org) 

Coral reefs: Essential and threatened | National Oceanic and Atmospheric Administration (noaa.gov) 

Restoring Coral Reefs | NOAA Fisheries 

Projects - Oceans' Harmony (oceansharmony.org) 

The Top 7 Coral Reef Conservation Volunteer Projects | WorkingAbroad 

▷ Coral Reef Restoration 🐚| Reef Conservation 2024 | Volunteer World 

[takasande]

👏 It’s time to level up! Roadmap to Non-Executive Directorship offers you the blueprint for building an impactful board career. Perfect for aspiring #NEDs, board members, and those ready to lead with purpose! 🌎 Get your copy today! https://shorturl.at/UJIsU 📚🚀 #BoardLeadership #DirectorHandbook #GovernanceMatters

[capt-shubhendu-kumar-tiger]

Congratulations #kerala & fellow #malayalis Pull up your socks #yogiadityanath Focus on #governancematters rather than your #nonsensical #utterances https://www.instagram.com/p/B3Dbd2gnFfG/?igshid=5ku584qu7nfx

[ainamotoibaravi-blog]

catching up on Lautoka stories with these beautiful young women #RFHAFijiBoardmembers #yakaviniVakaraubuka #SRHRinfluencersAdvocates #governancematters (at Nasese, Central, Fiji) https://www.instagram.com/p/B25xkOKBl50gYTO2MQZJ2xq5nxhw6gpfaJcP700/?igshid=1t0qqvg8gmux9

[rachelbatesinteriors]

Thank you @positiveluxury @dianaverdenieto for a superb #positiveweek event this evening @6thsoho #hearst chaired by @stormykeating creative collaborator & brand ambassador with an excellent & interesting panel including #stephenwebster of @stephenwebsterjewellery @trinnywoodall @juliettadexter of @thecommsstore #laurajordan of @graziauk #rewritingthenarrative #positiveluxury #positiveweek #brandstotrust #sustainability #followthebutterfly #governance #governancematters (at 6thsoho)

[muzaffar1969]

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Governance Matters @GovernanceMatt

Rivertide Consulting retweeted:

Our pre-written 'Conflict of Interest' policy helps Board Directors understand this vital governance area https://t.co/bklaawvxdA #corpgov

June 17, 2017 at 05:29PM https://twitter.com/rivertideps/status/876053571648749568 from Rivertide Consulting https://twitter.com/rivertideps/status/876053571648749568

[esgdata1992]

The Power of ESG Active Ownership: Driving Sustainable Change

In the realm of sustainable investing, ESG Active Ownership has emerged as a powerful tool for investors to influence corporate behavior and drive positive change. Here’s a closer look at what ESG active ownership entails and how it can make a significant impact.

What is ESG Active Ownership?

ESG Active Ownership involves using shareholder rights to influence company decision-making and promote better environmental, social, and governance (ESG) practices. This approach is crucial for ensuring that companies adhere to ESG principles, which can lead to long-term sustainability and value creation.

For more detailed information, you can visit ESG Active Ownership.

Key Components of ESG Active Ownership

Proxy Voting:

Investors exercise their voting rights at shareholder meetings to influence key decisions. This includes voting on resolutions related to environmental concerns, such as climate change, social issues like labor rights, and governance matters like executive compensation and board independence.

Engagements:

Active ownership involves engaging in constructive dialogue with company management and board members. This can range from discussing specific ESG concerns to addressing broader themes such as emissions reduction, diversity and inclusion, and corporate governance. Engagements are often collaborative, involving multiple investors to amplify the impact.

Stakeholder Collaboration:

Effective active ownership encourages collaboration among various stakeholders, including other investors, NGOs, and regulatory bodies. This collective effort is essential for driving systemic changes and achieving global goals such as climate stability and sustainable development.

Does Active Ownership Work?

The success of ESG Active Ownership is evident in several recent examples. For instance, a coalition of investors led by ShareAction successfully engaged with Tesco to increase its sales of healthier food and drink products, demonstrating the power of active ownership in promoting public health and sustainable growth.

Moreover, active ownership has been instrumental in pushing companies to strengthen their climate and biodiversity strategies. At the COP26 climate conference, a group of investors representing significant assets called on major banks to enhance their ESG commitments, highlighting the impact that collective action can have.

Can Individual Investors Participate in Active Ownership?

While ESG Active Ownership is typically more effective when executed by institutional investors due to their significant stakes, individual investors can also play a role. By investing through institutional investors that employ active ownership strategies, individuals can contribute to the broader effort. Additionally, many institutional investors are now providing more transparency into their engagement activities, making it easier for individual investors to understand and support these efforts.

Conclusion

ESG Active Ownership is a robust mechanism for investors to ensure that their investments align with their values and contribute to a more sustainable future. By engaging with companies and exercising proxy voting rights, investors can drive meaningful change and enhance long-term value.

For a deeper dive into the world of ESG active ownership, visit ESG Active Ownership.

[muzaffar1969]

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Governance Matters @GovernanceMatt

Rivertide Consulting retweeted:

The 200 Highest-Paid CEOs at US public companies in 2016 bit.ly/2sWBQu2 #corpgov

June 17, 2017 at 05:29PM https://twitter.com/rivertideps/status/876053288357175296 from Rivertide Consulting https://twitter.com/rivertideps/status/876053288357175296

[muzaffar1969]

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Governance Matters @GovernanceMatt

exechange retweeted:

The 200 Highest-Paid CEOs at US public companies in 2016 bit.ly/2sWBQu2 #corpgov

June 16, 2017 at 11:13AM https://twitter.com/pushoutscore/status/875595807319220224 from exechange https://twitter.com/pushoutscore/status/875595807319220224

[muzaffar1969]

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Governance Matters @GovernanceMatt

Lloyd Russell retweeted:

Our pre-written 'Conflict of Interest' policy helps Board Directors understand this vital governance area https://t.co/bklaawvxdA #corpgov

June 15, 2017 at 12:05PM https://twitter.com/LloydBD13/status/875245447891136512 from Lloyd Russell https://twitter.com/LloydBD13/status/875245447891136512

[muzaffar1969]

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Governance Matters @GovernanceMatt

WholeBoardDevelopmnt retweeted:

Ambiguity the culprit when things go awry – Part II bit.ly/2siLzO4 #corpgov

June 12, 2017 at 09:33AM https://twitter.com/WholeBoardDev/status/874117478326177793 from WholeBoardDevelopmnt https://twitter.com/WholeBoardDev/status/874117478326177793

[muzaffar1969]

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Lloyd Russell retweeted:

"The golden rule is that the board will delegate to management all decisions except those relating to…" https://t.co/SNEMW0MJpY #corpgov

June 12, 2017 at 09:03AM https://twitter.com/LloydBD13/status/874113433687384064 from Lloyd Russell https://twitter.com/LloydBD13/status/874113433687384064

[muzaffar1969]

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Governance Matters @GovernanceMatt

Linda Barlow retweeted:

One of China’s largest dairy companies is facing a #corpgov meltdown: All board members except chairman have left! https://t.co/6aWBX4QPV8

June 08, 2017 at 09:42AM https://twitter.com/lindabarlow101/status/872671676521218049 from Linda Barlow https://twitter.com/lindabarlow101/status/872671676521218049