We develop coherent action plans for sustainability advancement, specifically – but not exclusively – on social sustainability; we integrate norms-based indicators in environmental strategies and financial projects for climate change mitigation and adaptation so that the link between the E and the S in ESG becomes evident.
We are convinced that this exercise becomes especially relevant in light of existing and future regulatory obligations in e.g. the European Union on reporting, requiring that investments “do no harm” in accordance with sustainable investment reporting requirements.
Our cross-cutting approach to strategies and policies allows us to tactically link environment, social and governance aspects.
Imagine The Following Scenario
You have a sustainability initiative in place ensuring that your company does not pollute water, or a programme that is aimed at cleaning up polluted water (or you are an investor in said company). The contribution of such initiatives towards SDG 6 is easily identified, but very often “only” the impact on E in ESG is highlighted.
What happens however when people have clean drinking water and access to it too? It is likely to reduce their vulnerability to illness (causing a positive impact on their right to health); healthier children can attend school (fulfilling their right to education ), and adults can work (having meaningful access to their right to work). Furthermore, clean water has a direct impact on the standard of living of the affected communities, by e.g. improving crops quality and livestock health in rural areas, which in turn can influence positively the communities’ economic situation, contributing to the enjoyment of their human rights (e.g. the right to shelter).
As this example shows, it is important to consider the spill over effects of the impact of good (or bad) decisions on water when assessing and reporting on the overall ESG performance of a company.