ESG Disclosure and Reporting

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

Project managers: Aron Horvath and Ivana Petovska

Project leaders: EABIS, Solvay, KKR, Lloyds 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 or "superfactors".

Validation: with a network of pension funds.

 

More information in the attached project plan.

Key activities

1. Workshops on Maturity and Integration where 19 participating companies exchanged best practices and benchmarked the degree of maturity and integration of non-financial performance in business

2. A strategic workshop bringing together all participating companies

Ongoing

3. Identification of best practices of measuring and managing non-financial metrics and integrating CSR in business

Deliverables

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

  • Company tool-kit (mid 2013)
  • Policy recommendations to the European Union (mid 2013)
  • Company + Investors report (late 2013)

Members can download the overall project plan here.

Upcoming dates for your diaries

  • TBC 2013: Strategic workshop

Past activities

Company Workshop: ISO 26000 - two years after, 21 September 2012, London

Presentations:

Webinar on Valuing Non-Financial Performance: Project Overview and Initial Findings, 4 September 2012

Company workshop on integration, 12-13 July 2012, Paris

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)