Leaders need hard data to make the hard decisions about sustainability

sustainability 2019

(Unsplash, 2019)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Debra Walton, Chief Customer Proposition Officer, Refinitiv

Balancing short-term performance pressures with the need to invest in a long-term future is one of the most important tasks a modern leader faces. Those that achieve it will contribute to a sustainable ecosystem in which the company and its stakeholders will thrive.

Although the majority, if not all leaders see performance as a strategic priority, not all see sustainability with an equally clear lens. That level of clarity comes from a willingness to make hard decisions.

These hard decisions extend beyond corporate leaders to include individuals and governments on a local, state and federal level around the world. They unite us as a global society and provide a shared opportunity for driving awareness and critical thinking, adoption, and having meaningful impact.

As with all forms of leadership, sustainable leadership requires courage, and it begins with caring about our own operational footprint; being open with our environmental commitments and disclosures; holding ourselves to account every step of the way; and promoting a culture of transparency and inclusion.

Leaders can turn this insight into action with commitments to be carbon neutral; to reduce carbon emissions year-on-year; to be powered by 100% renewable energy; to employ a greater percentage of women and minorities in leadership roles; to reach pay parity; to embrace diversity, and to create a more inclusive workforce and culture; along with a commitment to expand community investment programs.

However, meeting these obligations requires a measurement framework that establishes a set of agreed criteria to serve as a benchmark, and standards that enable companies to improve their long-term strategy through a better understanding of the financial and non-financial impact of their business strategies. It also requires a commitment to use data when communicating with investors and other stakeholders about these impacts.

As a company committed to driving social impact through our tools, expertise and data, we at Refinitiv (formerly the Financial & Risk business of Thomson Reuters) have created the Sustainable Leadership Monitor (SLM) to enable leaders in this task. The SLM is a leadership tool that shows leaders their business impact based on over 450 data points of sustainability, governance, citizenship and long-term financial performance.

Since late 2016, we have been collaborating with the World Economic Forum and a group of partners to develop and use this tool as a measurement framework, in order to move from the simple belief in responsible business, to insightful analysis of business impact driven by hard data.

Image: Refinitiv

There is compelling evidence that ESG (environmental, social and corporate governance) is becoming one of the single biggest risks faced across most industries and businesses. Investors are increasingly using ESG as investment criteria, as a performance indicator, or indeed as a driver for sustainable investing.

Research shows that over one, three, and five-year periods companies that make investments and focus on ESG metrics deliver a stronger stock performance and better long-term profitability.

ESG data now bears out the high correlation between gender diversity and return on equity. Large-cap companies with the highest ESG rankings also tend to have consistently lower future price volatility than poorly-ranked companies.

The SLM empowers users to visualize trends in specific ESG criteria against their peers and inform decisions that are short term, and long term in nature too.

As a member of the European Commission’s Technical Expert Group for Sustainable Finance, Refinitiv is at the heart of an ecosystem of change-makers championing transparency standards and governance, enabling our customers to make important decisions, which balance short-term business pressures with long-term, positive societal progress.

We empower investors to shift towards sustainable investments and change how the largest businesses in the world think and act.

We have been serving the financial industry with ESG data and solutions for over 15 years and offer one of the richest databases in the industry – a fully transparent resource that is trusted by investors and corporates to drive positive impact and provide comprehensive analysis.

At Refinitiv, we enable our customers to make important decisions which balance short-term business pressures with long-term, positive societal progress. We do this by providing a suite of world-class sustainability-related data and products. These products impact multiple parts of the business lifecycle, from corporate governance and trading platforms to supply chains and investment portfolios.


the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

These countries are pioneering hydrogen power

In Mozambique, it’s ‘a matter of the heart’ says Guterres, lauding the cyclone-struck nation’s ‘undeniable moral authority’

Failing to see reality or deceiving the masses? The EU about poverty and social exclusion

Sudan: UN rights chief alarmed over ‘excessive force’, alleged use of live fire against protestors

Russia is ready for its Phase 3 evaluation once it fulfills high-priority recommendation

Female African coders ‘on the front-line of the battle’ to change gender power relations: UN chief

Water pollution is killing millions of Indians. Here’s how technology and reliable data can change that

Climate change is threatening Switzerland’s stunning scenery

G20 starts to tackle inequality

Finland has a new eco-fashion line – clothes made from trees

Educate children in their mother tongue, urges UN rights expert

Adriatic Sea: MEPs adopt multiannual plan for fisheries

Civilians ‘continue to pay highest price’ in Ukraine conflict, with peace prospects losing ‘momentum’

‘Power is not given, power is taken’, UN chief tells women activists, urging push-back against status quo

What makes us happy? AI scanned 700,000 journal entries to find out

The megatrend that will shape our working future

This is what CEOs around the world see as the biggest risks to business

FROM THE FIELD: Saving the tree kangaroos of Papua New Guinea

EU mobilises €21 million to support Palestine refugees via the UN Relief and Works Agency

2021-2027 EU Budget: €378,1 billion to benefit all regions

In visit to hurricane-ravaged Bahamas, UN chief calls for greater action to address climate change

How data can empower patients to personalize and improve their cancer treatment

UN human rights office urges Egypt to immediately release detained protestors

UN conference agrees better ways for Global South countries to work together on sustainable development

Empathic AI could be the next stage in human evolution – if we get it right

RescEU: MEPs vote to upgrade EU civil protection capacity

Another 170 migrants disappear in shipwrecks, UN agency reiterates call for an end to Mediterranean tragedy

ITU Telecom World 2018 takes place in Durban, South Africa

Asia’s plastic problem is choking the world’s oceans. Here’s how to fix it

Conflict, climate change among factors that increase ‘desperation that enables human trafficking to flourish’, says UN chief

Coronavirus: a cultural escape goat or the next Big Five

Ramped-up emergency preparedness, part of ‘changing the DNA’ of the UN’s health agency

5 surprising ways digital technology is changing childhood

Germany to help China in trade disputes with Brussels

$1.4 billion needed this year to fund UN’s agency for Palestine refugees

EU budget 2019 approved: focus on the young, innovation and migration

Accountability for atrocities in Myanmar ‘cannot be expected’ within its borders – UN investigator

We need to give voice to ‘We the Peoples’, says UN chief

EU to lead one more fight against climate change at G7 summit

‘Working night and day’, UN health agency seeks to prevent global coronavirus crisis

FROM THE FIELD: Free tutorials in Mali, ‘a life-saver’ for Fatouma

UN chief condemns deadly attacks in Afghanistan

Larger species are more at risk of extinction than smaller ones – here’s why

The world needs a grand coalition to tackle climate change

Haiti: ‘Laden with challenges’ but also hope, Mission chief tells Security Council

Antarctica: the final coronavirus-free frontier. But will it stay that way?

Secure 5G networks: Commission endorses EU toolbox and sets out next steps

Humanitarian crisis in Yemen remains the worst in the world, warns UN

The EU wants to create 10 million smart lampposts

Climate action ‘both a priority and a driver of the decade’: Guterres

European Innovation Scoreboard 2018: Europe must deepen its innovation edge

To my Chinese friend

7 shocking statistics that show the cost of corruption

Parliament’s interparliamentary delegations established

More children killed by unsafe water, than bullets, says UNICEF chief

250 days until the European Parliament elections

New Eurobarometer survey shows: The majority of Europeans think the EU should propose additional measures to address air quality problems

Trump-China trade war lingers upsetting global economy and stock markets

How civil society must adapt to survive its greatest challenges

Commission reinforces tools to ensure Europe’s interests in international trade

More Stings?


Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s