ESG Discussion Sees Boost in Q1’23: Corporate Priorities Unveiled
Hello Visionary Leaders!
At Koru, we believe that forging strong partnerships is essential for businesses to achieve their Environmental, Social, and Governance (ESG) goals. Today, we dive into an insightful research report conducted by Nasdaq ESG Advisory that sheds light on the evolving landscape of ESG discussions in the capital markets during Q1’23. As upper-level business individuals, your strategic decisions play a pivotal role in shaping the future of your corporations, and understanding the latest ESG priorities is critical for sustainable success.
1. The ESG Discussion Surges Ahead
According to Nasdaq's analysis, the conversation around ESG continues to gain momentum in 2023. They analyzed earnings call transcripts from leading companies within the MSCI USA ESG Leaders and Russell 3000 indices, providing a comprehensive view of ESG priorities and trends.
In Q1’23:
91% of MSCI USA ESG Leaders constituents and 80% of Russell 3000 constituents discussed ESG topics during earnings calls, reflecting a significant increase from the previous quarter.
ESG questions asked to companies rose, with 43% of MSCI USA ESG Leaders and 29% of Russell 3000 constituents receiving ESG-related queries.
2. Top ESG Topics in Focus
The analysis highlighted key ESG topics discussed during the earnings calls:
Climate: Climate-related discussions were prominent among companies, with topics like renewable energy, Inflation Reduction Act (IRA), and decarbonization strategies taking center stage.
Human Capital Management: Topics like training, company culture, and workforce were widely covered, emphasizing the importance of nurturing a skilled and motivated workforce.
ESG Strategy & Reporting: Companies focused on developing comprehensive ESG strategies and transparent reporting mechanisms to showcase their sustainability efforts.
Social Impact & Supply Chain Management: Corporations recognized the significance of their social impact initiatives and responsible supply chain practices.
Data Privacy & Cybersecurity: The Technology sector led discussions on safeguarding data privacy and cybersecurity to protect customer information.
Corporate Governance & Business Ethics: Ensuring strong corporate governance and adherence to ethical business practices remained critical components of the discussions.
3. Sector-Level Insights
Nasdaq's analysis also delved into sector-specific ESG topics, with Utilities and Basic Materials companies leading discussions on Diversity, Equity & Inclusion (DE&I), Biodiversity, and Waste management. Energy, Basic Materials, and Utilities sectors were at the forefront of discussions around Water initiatives. Consumer Cyclicals and Utilities sectors engaged in Community Engagement dialogue, emphasizing their commitment to local communities.
4. Prioritize ESG Efforts & Engage Stakeholders
As pioneers in the ESG landscape, Nasdaq's ESG Advisory Program stands ready to support your corporation's ESG journey. By leveraging their expertise and data insights, they offer tailored recommendations and strategies aligned with your specific sector and development phase.
To secure ESG capital and achieve your sustainable goals:
Engage with Nasdaq's advisors to access sector-specific insights.
Identify key ESG metrics suited for your company's growth trajectory.
Enhance your earnings conversations by addressing non-financial performance factors.
Seem overwhelming? We can help.
Let us embark on this transformative ESG journey together. At Koru, we are committed to connecting you with the right partners to achieve your ESG aspirations and drive lasting positive change.
Stay tuned for more ESG insights and impactful solutions from Koru!
Together, let's build a better, sustainable future for all.
Disclaimer: This blog post is based on a research report by Nasdaq ESG Advisory and is for informational purposes only. The views and recommendations expressed in the report are not endorsed by Koru, and readers should conduct their own research and due diligence.
