Abstract
To date, managers of approximately $ 30 trillion in financial assets—all signatories to the United Nations Principles for Responsible Investment (UN PRI)—are seeking to identify companies with higher levels of Environmental, Social and Governance (ESG) performance and strong returns. CFOs increasingly find ESG management on their agenda. However, based on insights from Deloitte Sustainability and the CFO study, in 2012, the management of ESG via the financial department varies enormously between industries and countries. This chapter aims to provide insights into four key areas which could be considered key links with respect to finding the value in ESG performance. First, the role of the CFOs in managing ESG performance, second, the market value of the respective information, third, the development over time towards a future outlook, and fourth the utility of transparent ESG information (in the form of internal and external reporting) going forward.
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Notes
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Introduced in 2006, the UN PRI currently has over 1000 signatories, including asset owners, investment managers, and professional service partners, who seek to integrate ESG factors into investment practice. See www.unpri.org/publications/annual_report2011.pdf.
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GRI Report Database, Retrieved from http://database.globalreporting.org.
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According to its scientific approach and due to the relevance of a practical perspective on mid-market research, the Deloitte midmarket institute has defined companies with revenue of approximately 50 million € and up to 3000 employees as mid-market corporations.
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International Organization for Standardization. See http://www.iso.org/iso/home/standards/iso26000.htm.
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Möller, V., Koehler, D., Stubenrauch, I. (2015). Finding the Value in Environmental, Social and Governance Performance. In: O'Riordan, L., Zmuda, P., Heinemann, S. (eds) New Perspectives on Corporate Social Responsibility. FOM-Edition. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-06794-6_14
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