ESG Disclosure and Reporting

Valuing Non-Financial Performance: Identifying, measuring and managing material drivers of value

Project manager: Sibylle Baumgartner

Project leaders: EABIS, Solvay, KKR, Llyods Banking Group, Telecom Italia, State Street, EFFAS

Challenge

Research continually shows that CEOs and investors regard valuation of non-financial performance as a crucial issue. However, companies are slow to integrate non-financial performance (NFP) measurements into mainstream business strategy internally and to communicate it externally; and investors are slow to incorporate non-financial indicators into valuation models. ESG factors are nevertheless seen as key drivers of NFP and they contribute to the company’s ESG strategy. (http://www.csreurope.org/pages/en/market_valuation.html)

Objectives

This collaborative project has two work streams, with the following objectives:

Company

Investors

The company project helps companies to increase quality and efficiency of non-financial performance management and to improve quality and focus of reporting by exchanging best practices on

  • Managing maturity: the degree to which companies measure and manage what is material to their business and on

  • Managing integration: the degree to which CSR is linked to the core strategy and management process of the business.

Practical validation of output of the Investor project.

Convergence: compilation of a list of NFP Practical validation of output of the Investor project indicators with a W/G of asset managers.

Consensus: testing the relevance & materiality and improve quality and focus of reporting of the indicators to derive a set of core indicators

Maturity: the degree to which companies measure or "superfactors".

Validation: with a network of pension funds.

 

More information in the attached project plan.

Key activities

Throughout 2011-2012, CSR Europe will work with two groups of 10 – 14 companies and hold workshops that will focus on:

  1. Management Maturity – Exchange of best practices on maturity, the degree to which companies measure and manage what is material to their business.
  2. Management Integration – Exchange of best practices on integration, the degree to which CSR is linked to the core strategy & management process of the business.

Deliverable

The results from the workshops and the general learning will be gathered together in two types of reports:

  • Company report (end 2012)
  • Company + Investors report (mid 2013)

Members can download the overall project plan here.

Upcoming dates for your diaries

  • Company workshop on maturity (confirmed participation only), 25 - 26 April 2012 
  • Webinar on communicating CSR, 22 June 2012
  • Company workshop on integration (confirmed participation only), 12-13 July 2012 
  • Deadline for submission results by participating NPO’s, 1 September 2012
  • Strategic workshop,  tbc

Past activities

Company workshop on maturity, 25-26 April 2012, Brussels

Communicating CSR Webinar Series

Showcasing valuing non-financial performance at Produrable 

Company workshop on integration, 1-2 March 2012, Rome: 

Company workshop, 15 November 2011

Project webinar, 8 December 2011

If interested in becoming part of the second group of company participants (Spring 2012) or for further information, please contact Sibylle Baumgartner (sb@csreurope.org)