In this second episode of the five-part special, Tom Fox discusses ESG intelligence with Chris Mason. They talk about the importance of ESG profiles, meeting regulatory requirements, and what ESG as a whole can do for businesses.
Chris Mason is with Infortal Worldwide, a global risk firm that provides due diligence services to support key investment decision-making. Infortal Worldwide supports a lot of private equity investment, mergers, and acquisitions, as well as any type of risk scenario a business may face.
- Businesses need to understand what their own ESG profile looks like. As regulations come into play, it’s going to be very important to know where your company sits along the ESG spectrum. “To truly understand that, you’ve got to really understand your exposure to a lot of environmental-based situations and circumstances that you may not have had experience with in the past,” Chris says.
- An ESG profile is vital for the middle market. Larger players in the market will be required to make ESG disclosures to potential partners and clients and comply with emerging regulations. Smaller companies will have to do the same in order to do business with larger companies. They will be looking at the ESG profiles of smaller companies to ensure alignment.
- After assessing their ESG profile, companies can then build a plan to meet their long-term ESG-related goals.
- A key element of ESG disclosure requirements is to make sure that you are actually following through on promises made. If your stance on environmental and social issues does not align with your actions as an organization, it can be detrimental for you.
- Your ESG profile is not static and can change.
KEY QUOTE
” A company’s ESG profile can significantly impact both reputation and valuation. ” – Chris Mason
Resources
Infortal Worldwide | Email | Tel: 1.800.736.4999
