Shareholder engagement and accountability in sustainable finance

EP&T Global is thrilled to be a part of the upcoming Sydney Directors’ Breakfast, hosted by the Australian Institute of Company Directors, where the focus will be on Climate & Sustainable Finance. 

In today’s rapidly evolving corporate landscape, stakeholder engagement and accountability have become crucial in driving sustainable finance and ensuring long-term business success. As companies increasingly focus on integrating ESG principles into their strategies, the need for transparent and effective communication with shareholders and other stakeholders has never been more critical. 

Stakeholder engagement actively involves all relevant parties in decision-making processes—investors, employees, customers, suppliers, communities, and regulators. This engagement is crucial for several reasons, from building trust and credibility to enhancing decision-making. It is also essential for risk management and improving corporate reputation. 

Boards should also demonstrate accountability and transparency in sustainable finance by: 

• communicating the company’s sustainability goals, strategies, and challenges 

• providing regular updates on progress and setbacks 

• publishing detailed sustainability reports that follow established frameworks (such as the Global Reporting Initiative or the TCFD)  

• involving stakeholders in sustainability discussions and decision-making processes 

• establishing clear, measurable sustainability performance metrics  

• conducting independent audits of sustainability reports and practices can enhance credibility and accountability 

EP&T Global’s EDGE platform is critical in enhancing shareholder engagement and accountability by providing businesses with transparent, data-driven insights into their ESG performance. By offering comprehensive reports on energy consumption, carbon emissions, and other critical ESG factors, the EDGE platform enables companies to communicate their progress and challenges effectively, fostering stakeholder trust and confidence. 

In today’s rapidly evolving landscape, the importance of climate risk assessment and the integration of ESG principles at the board level cannot be overstated. This event will explore strategies that Non-Executive Directors (NEDs) can employ to evaluate and manage various climate-related risks, including physical, transition, and regulatory risks. Additionally, it will delve into how ESG alignment contributes to long-term value creation and the board’s crucial role in ensuring responsible corporate practices.  

We look forward to engaging in this critical conversation and contributing to the dialogue on sustainable corporate governance.