The S in ESG: Leonie Jesse (KPMG)

The S in ESG: Leonie Jesse (KPMG)

August 7, 2023

S van ESG ESG
Leonie Jesse (foto archief KPMG) 980x600.jpg

This article was written in Dutch. This article is an English translation.

By Leonie Jesse, Associate Director at KPMG

How can investors interpret the S of ESG?

'Sustainable investing has taken off enormously in recent years. Investors are increasingly aware of the importance of environmentally sound practices and good governance. But let's be honest, one aspect often remains underexposed: the social dimension. Fortunately, the CSRD is about to change this by providing investors with in-depth insight into the social impact of their investments. With the CSRD and the emergence of the European Sustainability Reporting Standards (ESRS), investors finally have the tools to assess companies' social performance. This opens up a world of possibilities. Investors will be better informed on topics such as social justice, diversity and inclusion, labor rights, and ethical business practices.'

Where do the greatest opportunities and challenges lie in the area of ​​the S?

'Obtaining reliable and comparable data remains an obstacle. Companies should be urged to report their social performance fully and transparently so that investors can make informed decisions. Investors can play a role in this by putting pressure on companies and advocating for improved reporting practices. In addition, there are opportunities to actively involve companies. Investors can attend shareholder meetings and ask critical questions about social issues. By exercising their influence, investors can encourage companies to take social responsibility seriously and strive for improvement. However, we must realize that it is a long-term process. It takes patience and perseverance to achieve sustainable social impact.'

 

There are opportunities in actively involving companies.

 

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