What is ESG?
We believe equitable well governed companies, that take care of their people, customers, partners, and communities will have the greatest impact on the 21st Century economy.
While this idea is not revolutionary, it’s formal application is recent. The ideological and largely environmental foundations of ESG spawned in the mid 1990’s. Heightened attention on environmental impact brought by the United Nations in the 1992 Rio Earth Summit and the subsequent 1997 Kyoto Protocol, saw 192 nations pledge to limit and reduce greenhouse gas emissions with agreed individual targets. In that same year, the Global Reporting Initiative (GRI) was founded as an “independent, international organization that helps businesses take responsibility for their impacts, by providing them with the global common language to communicate those impacts.”
It wasn’t until the early 2000’s that ideology met with institutional adoption With the spectacular failure of Enron, America’s 6th largest corporation at the time, and other accounting scandals of the early years of the millennium. The 2002 Sarbanes-Oxley Act was passed to combat rampant corporate governance failures. This legislature aimed to provide greater transparency into internal standards and independent audits of publicly listed companies. Included within the Act are now commonplace ESG variables such as: transparent third party accounting, disclosure requirements, shareholder rights and transparency, whistleblower protections, and others.
This unprecedented headlined risk for traditionally risk-averse entities put a greater fiduciary responsibility on asset managers and service providers to create effective screening parameters for trades and investments. In 2004 the term ESG was coined as partof the “Who Cares, Wins – Connecting Financial Markets to a Changing World” paper publshed by the United Nations with 20 endorsing signatories from the financial services industry. Currently, some $40 trillion in assets under managementa are guides by ESG principles – representing roughly one third of all assets under management globally.
Financial Risk Management & Ratings
Given ESG’s adoption was driven by failures of publicly listed companies, it’s not surprising that the main facets of ESG service offerings rest in analysis of public records and filings. The data is used to generate risk models that act as screens for investments, such as selective indices and no-trade lists, or for ratings that add third party assurances to secure debts and obligations.
Compliance & Public Markets
With the formation of the TCFD in 2015 and added pressure put on exchanges and underwriters to account for environmental risks, ESG has become a prerequisite for public funding. Positioning for fundraising at all levels from startup to scale up, now increasingly involves understanding a company’s ESG risks and investment prospects.
Beyond Ratings, Towards Value
Implementation of ESG principles have been shown to create multiple avenues of value. DéWarrior uses a proprietary PACE framework to define and drive strategic ESG value objectives.
Dedication to transparent governance structures and inclusive social frameworks create happier, more productive teams with lower costs of talent acquisition and retention.
Building the culture from the foundation.
Our Approach and Assessment Model: ESG+
Advanced ESG+™ metrics and reporting are a crucial litmus test for C-Suite leadership and corporate boards. Fully understanding the dynamic balance of a company’s ESG strategy creates informed, data-backed decisions in all facets of the organization.
The DeWarrior approach marries advanced ESG+™ baselining and data analysis with veteran management consulting expertise, aligning stakeholder value and sustainable growth.
Achieving client objectives within rapidly evolving standards is a challenge we pride ourselves on. Our approach is ever-centered on helping our clients set the standards and drive tangible value beyond the peripheral compliance requirements.
We have developed a proprietary ESG+™ methodology. The “+” represents Innovation and our belief that to set and retain any standard, one must continuously look to the future.
Exceeding the norms of tomorrow requires pushing the limits of what’s possible today. We value innovation, disruptive outlooks, and radical technology. We encourage our clients to experiment and are with them every step of the way to determine how innovation could accelerate their growth.
Our ESG+ baseline analysis places emphasis on innovation variables in all categories of Environmental, Social, and Governance frameworks. We record and provide continuous observation of all analyzed variables across categories to ensure our clients understand where value is derived. Optimizing for cost, efficiency, and ever changing goals and standards
Our ESG+ Service Offering
ESG+ Assessment & Reporting
Our ESG+ baseline analysis was specifically designed for the cannabis industry, taking into accounts nearly a century of prohibition and the legacy mindsets still employed by stakeholders.
ESG+ Strategic Implementation
Following our baseline analysis, we position our clients to achieve their goals using ESG+ strategy. We believe that there are many approaches to a successful ESG+ transformation that start with understanding our clients needs and intentions.