Sillion’s Post

Incredibly important reading for those involved in sustainability communications - "an investor's view." We're heartened to read of positive progress in terms of reporting standards and greater transparency. Global reporting standards and a widespread commitment to reporting rigour and sophistication is impressing investors. But there are legitimate concerns, particularly around 'greenhushing'; companies over-delivering but under-communicating due to greenwashing fears. This might not seem problematic, but a reduction in communication can slow progress and development. Ultimately, though, it's all about action. Actions speak infinitely louder than words. Action over commitments is what must be included in 2025+ reports.

Sillion's Annual Investor Sustainability Report has just been published! I've been here all of about 5 minutes, so I can take absolutely zero credit for it, but it's a brilliant source of insight into what investors want to see from corporates from a sustainability disclosure, reporting and communications perspective. I found the insights around "greenhushing" especially interesting. It's becoming much more prevalent and is perceived as slowing progress in some sectors. Meanwhile, checks and balances for greenwashing are becoming more commonplace.

What are investors expecting from corporate ESG strategies in the upcoming year? Check out our newly released fourth edition of Sillion's Investor Sustainability Report with the answers. We interviewed 15 asset managers, representing a total of over £4.9 trillion AuM, to cover investor demands, key upcoming regulation, greenhushing, and transition plans.  Link below 👇

One of the most interesting threads of my career is watching corporates evolve to meet growing societal expectations. The reporting standards they comply with, and how investors assess those reports, is a crucial part of the corporate feedback loop to encourage more sustainable business practices. It's so exciting to work with a team doing brilliant work to help companies do better measurement and reporting- and engaging with the investor landscape to get a grip on what factors drive investment. I definitely recommend giving the new investor report a read!

ESG reporting is becoming increasingly complex for sustainability teams, and everyone is experiencing reporting fatigue.   I got the chance to interview 15 fantastic investors on where they see key regulations evolving in the next year, and where organisations should focus efforts.   This research should be especially helpful for UK listed companies preparing their annual report. Don't hesitate to message me if you have any questions! 

We’ve issued a new report! This is Sillion’s fourth annual report on what investors want from corporates, looking at key trends for the year ahead. If you’re curious to know more, get in touch - we’re always happy to chat! #Sustainability #InvestorSustainabilityReport #ESG

Here are some fantastic insights on investor views leading into the 2024 reporting season from a Sillion survey. After each main point, I've added my reaction to the investor perspectives: 📌 Investors wish to see realistic targets leading toward long-term climate goals. SBTi is still seen as a gold standard for target validation. My take: 👉 Transition plans and interim targets towards net zero climate goals have become critical features of annual ESG reports. Investors seek detailed, convincing targets, preferably with external validation, and ambitious plans to achieve them. 👉 Validation of targets by SBTi is still a best practice, even though the organisation has faced recent scrutiny over its changing approach to carbon credits and the CEO's recent resignation. 📌 Aligning with CSRD and/or ISSB is considered global best practice, even if local regulations differ. My take: 👉 It's important to note key differences and similarities between CSRD and ISSB to better understand reporting best practices. Reporting under one doesn't satisfy alignment with the other, though they have been labeled "interoperable." 👉 If a company doesn't fall in-scope to CSRD, an alternative for double materiality would be to conduct a double materiality assessment and report under both GRI and ISSB. 📌 Investors seek better descriptions of Scope 3 emissions measurement methodologies. Scope 3 reporting omissions based on materiality is something investors may question. My take: 👉 New regulations such as CSRD (see ESRS E1) may have led to methodology changes for companies re: operational reporting boundaries. Noting changes changes to year-over-year reporting methodologies is key to compare companies current to past performance. 👉 Some Scope 3 emissions categories are simply irrelevant to certain companies, but without an explanation, investors could question this. 👉 Details on carbon emissions factors, estimates and data sources gives investors enough context to interpret Scope 3 emissions measurements. 📌 Companies have improved their recent reporting on ESG topics. My take: 👉 I should hope so with so many enhanced regulations worldwide. 📌 Investors have identified greenhushing as a problem within reporting to the extent that progress is not being communicated transparently. My take: 👉 Investors should openly acknowledge the source of greenhushing as the anti-ESG "movement" and vocally counter its damaging influence on ESG transparency. I hope you find this survey as interesting as I have. Thank you to Sophie Robinson-Tillett for sharing the survey in Real Economy Progress, a publication I highly recommend. Let me know what you think of these investor insights in the comments. #esgreporting #transitionplans #CSRD #ISSB #Scope3 #greenhushing

Investor relations play a crucial role in communicating a company's sustainability initiatives and ESG practices to investors. As more investors seek opportunities aligned with their values and transparency regarding a company's impact on society and the environment, investor relations professionals must adeptly convey how sustainable investments contribute to long-term value creation. So, why invest in sustainable companies? It's about more than just financial returns. Communicating ESG performance, aligning financial and sustainability goals, and fostering transparency are key. How can we effectively communicate ESG performance to attract socially responsible investors while ensuring financial objectives are aligned with sustainability efforts? #InvestorRelations #SustainableInvestments #ESG #FinancialPerformance

Our commitment to sustainability is not just a policy –  it's a practice embedded in every facet of our business model. ♻️ Here's why 👇🏻 Comprehensive Strategy: In 2020, we embarked on developing a robust sustainability strategy, integrating ESG (Environmental, Social, and Governance) factors across our investment lifecycle—from due diligence to divestiture. This holistic approach ensures that we not only minimize ESG risks but also capitalize on ESG-based value creation opportunities. Operational Transformation: We actively work with our portfolio companies to enhance sustainability measures, whether through reducing carbon footprints or innovating products with sustainability in mind. Our actions are guided by both qualitative and quantitative KPIs to monitor and drive progress. Sustainable Development: Our exit strategy is as important as our entry. During the sales process, we integrate an ESG risk profile into the equity story.  Additionally, we consider ESG criteria according to the Best Owner approach to prevent selling any of our companies to a non-sustainable investor or strategist. This commitment is detailed in our sustainability report in accordance with the German Sustainability Code (DNK), which marks a significant milestone in our journey towards making things better. Discover how we make a difference. Read our Sustainability Report. 🔗 https://lnkd.in/dWUj9Srr #finance #management #bluecapag #investorrelations #listedinfrankfurt #investor

Marketing material for professional clients only. 🌍 We are proud to publish our Sustainability and Impact Report, showcasing how Schroders Capital's private market commitments are helping to drive decarbonisation and societal progress. Learn more 👉 https://okt.to/UQcFMI Capital at risk. #schroderscapital #impactinvesting #sustainableinvesting #sdgs #sustainability #GIIN