Four insights about corporate ESG performance
The Obermatt Triple Bottom Line ESG (Environmental, Social, Governance) Framework uncovers four key learnings.
September 2, 2021
Together with nine Swiss industry leaders, we designed the Triple Bottom Line ESG Framework. In evaluating over 1,200 ESG metrics reviewed by rating agencies and other organizations, and in our discussions with participating companies in the project, we uncovered some key learnings.
Most ESG metrics have an impact on a company’s long-term profit for shareholders. Having clearly defined ESG priorities that are also built into compensation plans can boost enterprise value. Many companies focus only on quantitative, numeric ESG metrics. There is potential to measure, report and reward a company’s “effort” that isn’t captured in numeric metrics. Only very few metrics are included in compensation plans and reporting. Companies can reduce their reliance on only a few metrics by including more metrics that also better align with their company strategy. Transparency of ESG performance and any ties to compensation is key. Consolidation methods are needed which are intuitive and comprehensive.
Obermatt’s Triple Bottom Line ESG Framework addresses these issues and more with practical guidance to improve ESG performance.
Join the Obermatt ESG Panel and hear best practices in ESG reporting and compensation from finance, HR and sustainability peers.
