Impact Europe (formerly EVPA) publishes new report on corporate social investing
The report, entitled ‘Putting the S in ESG’, explores the relationship between corporate social investments and companies’ ESG strategies. With input from 28 experts and practitioners, Impact Europe (EVPA) asks and answers the question: how do CSIs contribute to the S of their related company’s ESG strategy?
Corporate social investors
The term ‘corporate social investors’ (CSIs) includes corporate foundations, impact funds, corporate social responsibility and corporate citizen teams. For CSIs, beginning their approach by looking for synergies with their company’s ESG strategy “comes naturally” and not only unlocks additional resources for CSIs, but additionally enables them to accelerate their company’s progress towards “an equitable and sustainable society”. According to EVPA, the impact sector has long advocated for more collaborative approaches and less silo thinking, especially as challenges become more complex and intertwined.
Positive impact for people and planet
The report reflects on the positives of contributing to a company’s ESG strategy, listing increased relevance, buy-in, synergies and co-development as compelling reasons. It also reflects on the reasons not to contribute, such as maintaining flexibility and independence, and considers the risks of impact washing. EVPA says that, when contending with the question of whether or not to contribute, “CSIs can use the findings presented [in the report] to aid their decision-making, with an eye towards which decision drives to most positive impact for people and planet.”
CSIs and ESG overlap
The report summarises: “As the overlap between CSIs and ESG continues, practitioners are well-positioned to provide insights on the benefits and pitfalls. Social impact is the destination, but without a map to this winding road, practitioners and strategic stakeholders alike risk getting lost. CSIs have blazed the trail, and now it’s time to draw a reliable map.”
Reflection will help create a meaningful sustainability strategy
“The question whether to contribute to the company’s ESG strategy will eventually reach every CSI. While there are valid reasons to maintain some distance, it is important to recognise the vast opportunities that connecting with the ESG strategy can unlock, provided there is willingness and capability to do so. For CSIs it is an opportunity to occupy a unique role as empowered innovators — they get the space to try new ideas and the buy-in and boardroom attention to unlock corporate resources. For companies, advanced coordination and communication with the CSI will facilitate the development of a holistic and impactful ESG strategy.”
Impact Europe is an NGO operating in financial services
Impact Europe (EVPA), described as “Europe’s investing for impact network”, is an NGO operating at the “intersection of finance and purpose” and aims to ignite thinking and action in order to increase prosperity and social progress for all.
Guidance for trustees on investing charity money published
The Charity Commission has published updated investment guidance for charity trustees (CC14), which reflects findings from the Butler-Sloss judgment and incorporates the previously separate guidance from the Commission on social investment.
Investors call for greater clarity on value of ESG
A recent survey of chief investment officers by McKinsey shows that, whilst major investors believe that ESG is important, they need greater clarity about the ESG value proposition, as sustainability aspirations or metrics on a page without context are not sufficient to link initiatives to cash flow.