Companies around the world are facing increased pressure from investors, customers, and other stakeholders to measure and report their Environmental, Social, and Governance (ESG) performance.
In this episode, Michael Diegelmann urges business leaders to think about the impact their corporate practices are having on communities around them and on the planet as a whole. He stresses the importance of acting now, as it is "five minutes to midnight" for sustainability.
Today’s consumers, particularly the younger generations, have higher expectations and companies need to be proactive. In the clothing industry, for example, it is important for brands to guarantee that none of their products involve child labor in order to maintain customer loyalty.
Michael explains that the process of helping corporate clients improve their ESG performance begins with analyzing the sector and benchmarking the company against its peers. This is achievable through the Global ESG Monitor (GEM) report, which examines 625 ESG reports from 350 large companies on four continents and evaluates them on 180 different criteria. The next step is to conduct a materiality analysis, which identifies areas that must be tackled first for the corporation to be sustainable in the future.
Adrian asks how this technical work will translate into a more public conversation. Michael responds that it will take time and require a change in habits and patterns, but companies who don't make changes will have difficulty finding new capital in the future. He gave the example of a CEO who nearly lost a big deal because of a lack of good ESG reporting.
It is a long process to become a sustainable company, and Michael warns against greenwashing and false claims. He predicts that there will be an increase in lawsuits in the coming decade as people and NGOs push back against companies that aren't truthful about their practices.
Companies must be transparent and measure their ESG performance in order to be considered good corporate citizens. Those that do not will face public criticism and financial consequences.
Additional Resources
About the Guest
Michael Diegelmann is a board member and founder of cometis AG and the Global ESG Monitor. Since 1998, he has gained a wealth of experience across the entire spectrum of investor relations. He specializes in IPOs, capital increases, ESG consultations, hostile and friendly takeovers (cross-border), and bond issues, as well as corporate crises and all aspects of investor relations and financial media work. Michael has a longstanding network of contacts with media, analysts, fund managers and many opinion leaders in the financial community. He is co-author of numerous specialist publications, including the bestseller "100 Financial Ratios" with more than 300,000 copies sold. After studying International Business Administration in Wiesbaden, the USA, Canada and England, he worked for a Frankfurt brokerage house, as a project manager for an international consulting firm, and as a freelance journalist.
About the Host
Abbie Fink is vice president/general manager of HMA Public Relations in Phoenix, Arizona and a founding member of PRGN. Her marketing communications background includes skills in media relations, digital communications, social media strategies, special event management, crisis communications, community relations, issues management, and marketing promotions for both the private and public sectors, including such industries as healthcare, financial services, professional services, government affairs and tribal affairs, as well as not-for-profit organizations.
PRGN Presents is brought to you by Public Relations Global Network, the world’s local public relations agency. Our executive producer is Adrian McIntyre. The show is produced by the team at Speed of Story, a B2B communications firm in Phoenix, AZ.
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