ESG Perform launches game changing platform to help companies benchmark their reporting of Environmental, Social and Governance performance. Leading business commentator for The Australian looks at the value creation of ESG Perform
James Demetriou AM Executive director ESG Perform
ESG on the quiet
Melbourne University Management Professor Dr Danny Samson optimistically argues Trump’s election has meant US companies, while no longer talking up ESG principles, are still adopting the model.
This column has long noted that for close to 40 years Wesfarmers chair Michael Chaney has adopted the principles without label and the figures support the claim that “ESG performance is not just a moral imperative but a catalyst for long-term success”.
ESG investing is playing catch-up from the initial Trump hits, but the positive is that Morningstar figures show fund outflows have fallen from $US315m to $US165m in the past quarter.
The outflows were passive fund led while active managers showed positive flows.
Samson and his team at ESG Perform have built a platform comprised of 23 measurable elements as a benchmark for companies to measure performance.
He says the regulators have focused on environmental reporting with little thought given to the social and governance elements which are crucial.
The platform, Samson says, provides a value-added tool for business to outperform the market.
The end results are better revenue growth, lower risk, more efficient, lower input costs, improved governance and better stakeholder attractions.
The Chaney mantra is “to deliver a satisfactory return to shareholders – but this is only possible over the long term … by looking after customers, staff, the environment, suppliers, communities in which it operates and … acting with integrity and honesty”.
The Samson platform is an attempt to allow big and small companies a way to test whether they are matching the goals and, in theory, the returns will follow.