Matt DiGuiseppe, currently the Vice President of Research and ESG at Diligent, started his career in proxy voting and corporate governance, a nascent ESG space, primarily around asset stewardship, engaging with companies around materials, environment, social, and governance topics. Back then – you were begging companies to come talk to you. The industry has come a long way, and now companies are excited to share the good works they’re doing in this area. He and Tom discuss the changes in the ESG over the last few years and the new tools and technologies that are helping companies implement effective programs.
 

 
A Changing Dialogue
Tom asks, in addition to the name change from Asset Management to Asset Stewardship, what are some of the big changes Matt has seen. Matt explains that one was the availability of data and also a change in the willingness of companies to engage with customers on ESG issues. What once was hour-long conversations about compensation, now are multiple real conversations every year about ESG and how it links to broader strategy and the day-to-day functioning of the organization. He and Tom discuss how asset managers assess companies using the data and the conversations happening about it.
 
Old Systems Aren’t Up to the Task
Business systems that are in use now were really not designed to report on or assess ESG issues. Matt talks about the Embankment Project for Inclusive Capitalism, which brought together investors and other stakeholders to develop new accounting metrics for ESG topics. The participants brainstormed different metrics that would be useful, and the companies in attendance tried to apply them to test the concepts being developed. It turned out that the information was very difficult to obtain from the information systems being used. Diligent is helping to bridge that gap with tools that can gather data from different systems using advanced technologies. Tom has had similar experiences and seen the availability of data increase in his areas of practice as well. –  he always tries to tie it back to overall business efficiency and profitability.
 
Regulatory Issues
Tom notes that the Biden Administration has made a lot of changes around ESG, and Matt talks about how on a global basis you’re seeing regulators almost race to set standards for industries to meet. Regulations are coming to investors as well as companies themselves, which means there is another market for clear, comprehensive data on ESG.
 
How Diligent Is Helping Companies Report on ESG
Matt shares some of the tools and features available from Diligent, and how they can help companies track, monitor, and report on their ESG programs.

• Automated Data Collection through an RPA –Robotic Process Automation allows you to take unstructured data and turn it into something decision-useful.
• Collection Calculation and Reporting of Greenhouse Gases in a way that is auditable.
• Customizable Reports and Real Time Dashboards. Management, boards, and executives all need different amounts and kinds of information.
• Importing External Data. Being able to see not just your own company’s data, but the public perception of it, as well as how your peers are performing provides a much more meaningful understanding of your metrics. 

 
Final Thoughts
Tom says the three most important things about any compliance program are document, document, document, which he has amended to include data, data, data – and ESG marries these two concepts. Matt agrees and goes on to share some of the ways the Diligent platform is helping make this possible so that if a regulator comes knocking, organizations are confident and prepared.
Resources
Diligent.com
The Diligent Institute