Q2 | Torys Quarterly • Spring 2023
Bringing ESG back down to earth

Cut through the increasing noise around ESG by returning to the fundamentals of business strategy.

Faire défiler

Operations

ESG demands alignment across all arms of business to set targets and policies and respond to the opportunities and risks emerging as ESG goes mainstream.

Set the ESG agenda in relation to what makes sense for the organization. Don’t go through the motions but really decide what defines your future success and a statement of values for you as an organization.
— Directors’ Q&A: Boards and ESG

Disclosure and reporting

For many businesses, ESG reporting will transcend historical dimensions of disclosure as well as jurisdictional borders, including both risks to supply chains and standards trailblazed in other jurisdictions.

In the EU, there is no let-up on the horizon in the pace of change and complexity in the ESG regulatory sphere … These regulatory developments do not only affect EU companies, but also non-EU companies with businesses operating in the EU.
— EU sustainability rules: ESG disclosure and supply chain due diligence regulations affecting non-EU companies

Performance

ESG is by now an essential area of focus for transactions of all kinds. Deals are now being challenged by diverse and competing corporate and investment objectives.

ESG considerations play an increasingly important role in buyers’ selection and assessment of transaction opportunities. Beyond general factors, buyers are incorporating ESG factors into their financial modeling in determining target valuation.
— Increasing ESG focus in M&A transactions

Industry focus

Getting granular to map context-specific applications of ESG by both industry and enterprise will be key to staying competitive as sectors respond to new opportunities and risks.

Even in challenged capital markets, there remains broad investor support for companies involved in the production of minerals that are critical to the energy transition.
— A “positive” feedback loop: ESG and critical minerals and the mining sector

Inscrivez-vous pour recevoir les dernières nouvelles

Restez à l’affût des nouvelles d’intérêt, des commentaires, des mises à jour et des publications de Torys.

Inscrivez-vous maintenant