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< Intro >

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– Welcome to another exciting
episode of Count Me In.

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Today we have a special guest
with us, Janis Parthun.

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VP, Advisory and Project Services, at RGP.

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She is an expert in the field of
Environmental, Social,

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Governance or ESG, 
as many of us know it.

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Janis brings a wealth of knowledge
providing a fresh perspective

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on the complexities and significance of ESG.

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She will walk us through
the intricacies of ESG,

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discuss its growing prominence,

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and share valuable insights
on its implementation.

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So if you're looking to understand ESG better,

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and how we can add value
to your business model,

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this is one episode you won't want to miss.

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Let's dive right in.

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< Music >

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– Janis, we're really excited to have you

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on the Count Me In podcast.

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As we go into today, we're
going to be talking about ESG

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or Environmental, Social, and Governance,

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and we hear a lot about that.

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IMA talks a lot about that.

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We've been publishing articles.

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There's a lot of things
happening in the industry.

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But maybe we can start off
just at a higher level

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and talk about what does it mean,

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what does it represent, in an organization?

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– Yes, Adam, happy to do that.

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The term ESG or Environmental,
Social, and Governance

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can really differ just depending
on who you speak to.

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But I'd like to establish some
initial background here.

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Where environmental focuses

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on the company's impact on the environment.

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On the risks, and opportunities

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associated with the impact of
climate change on the company, 

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its business, and its industry.

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Social may focus on the company's
relationship with people and society,

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or whether the company's
investing in its community.

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And governance focuses on issues

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such as how the company is run,

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and possibly connect to executive compensation.

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So ESG has been an important element

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to organizations approach to create
value, as part of the business model,

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and just to the greater society impact.

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But what does this entail?
Is what I often hear.

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And to elaborate a little bit more,

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a company's overarching ESG program

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will likely have top priorities
determined around ESG matters.

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With goals, which includes metrics

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and possibly targets for future
outlook set and established

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To reach the goals and the targets,

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the company may have 
various initiatives and action,

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in order to support their goals.

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For example, a company may
have climate change

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as one of its ESG priorities
or material topics,

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and a goal to reduce emissions
with the target of 40% by 2040.

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The organization, then, may
have an initiative or a project

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to convert all transportation fleets

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to electric vehicles, as a strategy
to reduce the emissions.

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But when we're discussing ESG,

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at the overarching program
or program level,

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this is applicable across multiple
material topics or priority topics.

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Now, the topic of ESG is not new,
and there are significant funds

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and investments around this.

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Currently, over 96% of the
S&P 500 already, voluntarily, 

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publish sustainability reports
in some form or fashion.

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But an increasing interest
from parties to invest,

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and companies wanting to
communicate or report on ESG.

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Regulatory and standard-setting bodies

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are also paying attention to how companies 

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are reporting on ESG matters.

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– Definitely, and you see a lot

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of the bigger organizations implementing it.

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But smaller organizations may
not quite be ready or there, yet.

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And if you are one of those organizations

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that are saying, "You know what,
I want to jump into this, get into this."

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What are some steps that a
typical company might undergo 

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to establish an ESG-type program?

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Is there a specific, strategic, approach

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that you need to take when
you're implementing that?

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– Yes, that's a great point, Adam,

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and there is a recommended
strategic approach to this.

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So the other aspect to think about
is the ESG strategic roadmap

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or steps that companies, typically, may
undergo to establish an ESG program.

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First, is really having to determine materiality.

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This is driven by stakeholder and market input,

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industry profile, business strategy,

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and suggested standards and frameworks.

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And, then, setting goals and targets
and execute on the reporting.

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So establishing process and oversight

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to have that accountability, and report

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or update related to performance metrics.

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And, then, establishing quality control.

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Establish process and governance

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to ensure the quality control of the
data that's collected or reported,

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and of course, reevaluate in that cycle.

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But, more often than not, companies

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are encountering challenges, during
the midpoint stages of executing

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on the ESG program strategy.

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And this includes adhering to regulations,

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standards and frameworks, and just
trying to stay current and up to date.

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There are several in the horizon,
and it's a lot going on 

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for companies to navigate through.

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Program management and governance,

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having organizational governance
over the ESG program, 

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and monitoring and tracking
against existing goals, appropriately,

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and evaluating progress.

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For example, do you have a
governance process around adding

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or revising priorities or metrics?

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And monitoring the actions
or involved in ESG committee

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that helps govern the goals
set and tracked.

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And data quality management;
is the information reliable?

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For example, is the information
collected comprehensive

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to the metrics being tracked?

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Such as inclusive the
various regions and markets.

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Is that information reliable?

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Such as is it trackable
or include supporting details.

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And with each of these challenges,

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it's important to pull the right
resources in to help and address.

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– Before we get too much into the details

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of program management and those challenges.

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You've mentioned a few times,
about different regulating bodies

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have been watching in certain areas.

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There are regulations and new
standards coming up,

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and that can be challenging
for anybody and everybody.

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A lot of people are overworked.

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People are getting stressed out,

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and the idea of having
more regulations to follow 

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can be very stress-inducing.

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But, maybe, you can talk
a little bit more about

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how it's affecting companies
and what people can expect?

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– Yes, I can, definitely, elaborate
that a little bit more, Adam,

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and dive a little bit deeper.

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From a regulatory driver perspective,

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and you're so right on this.

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And there's such an increasing scrutiny

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just on how companies are presenting

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the ESG-related information.

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As well as the push to reduce

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the climate impact to the environment.

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That multiple regulatory authorities
are pushing their agendas,

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and that's what's creating
all this pressure, too.

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For U.S. public companies the
pressure is coming from the SEC.

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With the biggest proposal

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on climate-related disclosures
announced last year.

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To disclose governance,
strategy, risk management,

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and targets on the climate impact

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and, specifically, greenhouse gas emissions.

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And there are multiple elements

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within the proposal that's creating
concerns for many public companies.

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Especially around disclosing climate-related

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financial impact and Scope 3 Emissions.

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I think by the time this recording is released,

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the SEC will likely announce an update

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and issue, possibly, a reduced-scope
version of the original proposal.

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It is a lot to ask for companies
to disclose on those areas.

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And this is just one specific proposal,

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and there are several other
SEC proposals anticipated

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to finalize in the horizon,
this year, as well.

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Beyond the climate-related disclosures.

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And in the EU, the pressure is
coming from the EU Commission.

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The Commission recently
adopted a new rule, late last year,

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The Corporate Sustainability
Reporting Directive or CSRD.

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For companies to publish detailed
information on sustainability matters.

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To increase the company's accountability,

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and to prevent divergent
sustainability standards.

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This is a pretty big ask since
there are 12 standards drafted

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with 10 specific ESG topics.

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Spanning from climate, to
workforce, to business conduct.

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And this may also impact a U.S. company

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if the company has subsidiaries
in the EU market.

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And there are also country jurisdictional 

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specific requirements to consider.

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That I won't mention here because
there's just a lot to capture.

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But beyond reporting,
the EU is also proposing

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another new rule to streamline information

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about companies' environmental performance of products,

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and to reduce misleading claims.

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So just to add one more thing to this,

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related to all this, is that
companies are also, increasingly, 

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being asked to communicate
and report information 

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that's understandable, across a
broad base of the investor community.

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So more so around voluntary standards.

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And this is happening through
recognized standards 

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and frameworks for comparability,

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and there are a number of them as well.

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So the top two standards

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that are frequently referred
to is SASB and GRI.

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But there are also others,
each with a specific mission.

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And, again, this is just a lot for companies

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to get a handle of and stay on top of.

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And I just wanted to, at least,
share a little bit of the landscape

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of the different type of requirements

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or voluntary type of disclosures.

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And, then, interesting enough,

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just to highlight or illustrate a little bit.

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So, for example, we at RGP
had helped one of our clients

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on a related issue last year.

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The Task Force for Climate-related
Financial Disclosures or TCFD,

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issued new recommendations
in October 2021.

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And the client needed to understand

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the degree of the changes.

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As well as consider how this
impacts the clients reporting

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to another global environmental
disclosure system, the CDP

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in connection to the TCFD changes.

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So that's just one example.

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But the reporting information

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can also be interconnected
across the requirements.

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– That's really interesting,

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and as you're going into this process,

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either get some help or make sure

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you're staying on top of that,
or find an organization

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that can help you stay on
top of those standards,

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and help understand it better.

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Because depending on
where your organization is,

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will be what standards you
have to follow, obviously.

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So we've talked about the standards

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and the different regulations,

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and you've gotten a very good
overview of that, for the audience.

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But you mentioned aspects

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of program management and governance

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outside of their keeping up with
the standards and regulations.

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You have to actually manage the program.

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Maybe you can talk about
what you've seen

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where companies are on track,
where they're not on track,

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and maybe give some best practices.

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– Yes, happy to do so, Adam,
it's a great point to bring up.

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So I've seen companies where
they're really leading the pack,

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and companies where they're falling short

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on their ESG commitments
to their stakeholders.

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Now, in terms of companies

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where they're really on track
and where they're not.

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Industries that are ahead
of the curve in ESG reporting

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are in consumer products and real
estate, and for good reasons.

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So for consumer products,
recent studies show that

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consumers are shifting their
spending towards products

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with ESG-related claims, and
products making ESG-related claims

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have averaged higher cumulative
growth, over a five-year period.

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This is a major reason that
consumer product companies

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are pushing to be ahead of
the curve in ESG initiatives,

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and to report on ESG commitments.

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Chipotle is one setting
a good example, recently.

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The company announced that
its 2023 ESG goals will be linked 

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to executive incentive compensation.

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Impacting its 2023 annual
incentive bonus by 15%.

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So making that commitment
to set the goals

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and hold its people accountable,

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to achieve the goals, is a great example.

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For real estate, considering there's
a significant emission generation

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from the real estate value chain,

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ESG is now a top-risk priority
for the industry.

252
00:12:36,828 --> 00:12:40,828
And CBRE is one setting a good example.

253
00:12:40,828 --> 00:12:42,920
When the company entered into a new

254
00:12:42,920 --> 00:12:46,000
five-year revolving credit
agreement, last year,

255
00:12:46,000 --> 00:12:48,494
to increase it's revolving credit facility.

256
00:12:48,494 --> 00:12:50,339
It linked the agreement with achieving

257
00:12:50,339 --> 00:12:52,670
certain sustainability goals.

258
00:12:52,670 --> 00:12:57,161
Such as to provide procurement
spending with sustainable suppliers

259
00:12:57,161 --> 00:13:00,827
to converting vehicle fleet
to electric vehicles.

260
00:13:00,827 --> 00:13:04,494
But there are instances where
the companies are using ESG 

261
00:13:04,494 --> 00:13:07,661
to promote and market
products misleadingly.

262
00:13:07,661 --> 00:13:11,390
And this is a lesson learned
for one retail company last year.

263
00:13:11,390 --> 00:13:14,327
On what might happen when your organization lacks the program

264
00:13:14,327 --> 00:13:18,327
governance and the structure
to manage the ESG initiatives,

265
00:13:18,327 --> 00:13:20,994
and the integrity of the data reported.

266
00:13:20,994 --> 00:13:24,209
In this instance, the apparel
company was investigated

267
00:13:24,209 --> 00:13:28,440
by regulators for misleading
sustainability-related products,

268
00:13:28,440 --> 00:13:31,994
and had to remove the labels
from their products and websites.

269
00:13:31,994 --> 00:13:34,660
I mean, the company really
broke the brand promise 

270
00:13:34,660 --> 00:13:37,560
of offering sustainable apparel.

271
00:13:37,560 --> 00:13:40,579
It's clear that there's consumer demand

272
00:13:40,579 --> 00:13:42,730
for more eco-friendly products.

273
00:13:42,730 --> 00:13:46,327
But, again, this is where the
regulators are stepping in.

274
00:13:46,327 --> 00:13:49,994
And the European Commission
had, recently, highlighted that 

275
00:13:49,994 --> 00:13:53,660
over 50% examined environmental claims,

276
00:13:53,660 --> 00:13:56,019
in the EU study conducted,

277
00:13:56,019 --> 00:13:59,494
were found to be vague,
misleading, or unfounded.

278
00:13:59,494 --> 00:14:02,160
And because of this, the
Commission had since proposed

279
00:14:02,160 --> 00:14:04,994
a rule that I just had mentioned
earlier to address.

280
00:14:05,139 --> 00:14:08,019
And companies that are lagging
behind in ESG reporting

281
00:14:08,019 --> 00:14:12,670
are more likely in IT or healthcare industry.

282
00:14:12,670 --> 00:14:16,550
With less direct customer
or consumer pressures,

283
00:14:16,550 --> 00:14:19,519
or just have other pressures
to take priority,

284
00:14:19,519 --> 00:14:22,160
such as COVID-19 in the past few years.

285
00:14:22,160 --> 00:14:25,310
And companies may also have
other external pressures,

286
00:14:25,310 --> 00:14:28,327
such as having to obtain capital, for example,

287
00:14:28,327 --> 00:14:30,827
from the mergers and acquisition perspective.

288
00:14:30,827 --> 00:14:33,670
A number of studies indicate
that senior management suggest

289
00:14:33,670 --> 00:14:35,060
they're willing to pay premiums

290
00:14:35,060 --> 00:14:38,493
to purchase companies
with positive ESG records.

291
00:14:38,493 --> 00:14:41,740
ESG is also influencing
capital raising process.

292
00:14:41,740 --> 00:14:45,493
For example, this year, credit
ratings agency, Fitch Ratings,

293
00:14:45,493 --> 00:14:49,279
announced plans to use its
climate vulnerability scores

294
00:14:49,279 --> 00:14:52,993
to enhance the process
to consider credit-relevant,

295
00:14:52,993 --> 00:14:56,060
climate-related risks or
its corporate credit ratings

296
00:14:56,060 --> 00:14:58,490
for non-financial attributes.

297
00:14:58,490 --> 00:15:01,326
So with the increasing
demands by stakeholders,

298
00:15:01,326 --> 00:15:04,899
companies may wonder how
they can establish or elevate

299
00:15:04,899 --> 00:15:08,259
to a solid ESG program and governance.

300
00:15:08,259 --> 00:15:09,993
To start, it's about understanding

301
00:15:09,993 --> 00:15:13,720
your priorities, based on your
industry profile and business model.

302
00:15:13,720 --> 00:15:16,160
Because once the priorities are established,

303
00:15:16,160 --> 00:15:18,320
organizations can drill down further.

304
00:15:18,320 --> 00:15:19,990
Understand what specific metrics,

305
00:15:19,990 --> 00:15:22,300
goals, and targets are relevant,

306
00:15:22,300 --> 00:15:25,493
and integrate these activities
to the business strategy.

307
00:15:25,493 --> 00:15:29,819
With all this having a structured,
more formal ESG program,

308
00:15:29,819 --> 00:15:31,180
with governance structure,

309
00:15:31,180 --> 00:15:34,730
can help set clear strategic goals and expectations.

310
00:15:34,730 --> 00:15:37,250
That are recognizable by a broader audience,

311
00:15:37,250 --> 00:15:41,399
and hold management and internal
stakeholders more accountable.

312
00:15:41,399 --> 00:15:43,660
Whether public or private organization;

313
00:15:43,660 --> 00:15:45,660
just having structure can really help

314
00:15:45,660 --> 00:15:48,659
better communicate ESG efforts and progress

315
00:15:48,659 --> 00:15:53,326
to the community, to creditors,
or investors that large

316
00:15:53,326 --> 00:15:54,519
– Janis, as you're given that answer

317
00:15:54,519 --> 00:15:57,560
one thing that really stuck
out to me is data quality.

318
00:15:57,560 --> 00:15:59,560
And as we, in the accounting world,

319
00:15:59,560 --> 00:16:01,810
know how important your data is,

320
00:16:01,810 --> 00:16:03,420
and having numbers in the right place,

321
00:16:03,420 --> 00:16:05,560
and reporting accurate numbers.

322
00:16:05,560 --> 00:16:07,050
And I know that there are concerns

323
00:16:07,050 --> 00:16:11,659
around the quality of data in
ESG information that is reported.

324
00:16:11,759 --> 00:16:13,769
And you made some examples of people

325
00:16:13,769 --> 00:16:15,639
not giving that accurate thing

326
00:16:15,639 --> 00:16:18,269
and, especially, on how
they're marketing things.

327
00:16:18,269 --> 00:16:21,290
What can companies do to
address these types of issues?

328
00:16:21,290 --> 00:16:25,326
– Yes, that's a great point
to have a discussion.

329
00:16:25,326 --> 00:16:29,600
Yes, data quality is a significant
concern for companies.

330
00:16:29,600 --> 00:16:33,326
And the concerns used to be
more around the data collection

331
00:16:33,326 --> 00:16:36,159
and the availability of the information.

332
00:16:36,159 --> 00:16:38,589
But now companies are getting more comfort

333
00:16:38,589 --> 00:16:40,680
around what information is available

334
00:16:40,680 --> 00:16:44,709
just through understanding and research.

335
00:16:44,709 --> 00:16:48,259
And it's been shifting more
focus on the data quality,

336
00:16:48,259 --> 00:16:50,459
or the completeness and the accuracy

337
00:16:50,459 --> 00:16:54,319
of the data collected,
calculated, and reported out.

338
00:16:54,319 --> 00:16:55,825
And there's been an increasing focus

339
00:16:55,825 --> 00:16:59,825
on the data quality with a number
of our clients in preparation,

340
00:16:59,825 --> 00:17:01,992
more so for future assurance.

341
00:17:01,992 --> 00:17:04,280
And this is an increasing trend

342
00:17:04,280 --> 00:17:07,189
that's also being observed 
at the board level.

343
00:17:07,189 --> 00:17:12,659
According to a recent survey,
conducted with corporate directors.

344
00:17:12,659 --> 00:17:16,530
Over 50% of public company director respondents

345
00:17:16,530 --> 00:17:20,819
indicated that the higher quality of ESG information

346
00:17:20,819 --> 00:17:22,659
is being presented to the board.

347
00:17:22,659 --> 00:17:24,325
But, then, with a lower percentage

348
00:17:24,325 --> 00:17:27,319
and less progress for private companies.

349
00:17:27,319 --> 00:17:29,992
To address the concerns or focus area

350
00:17:29,992 --> 00:17:33,100
companies are seeing how
they can prove the quality,

351
00:17:33,100 --> 00:17:37,240
through building internal
control structure to ESG data.

352
00:17:37,240 --> 00:17:39,390
And interesting, and timely enough,

353
00:17:39,390 --> 00:17:42,992
the IMA, also, recently, issued a publication,

354
00:17:42,992 --> 00:17:47,710
Achieving Effective Internal Control
over Sustainability Reporting.

355
00:17:47,710 --> 00:17:51,440
That directly speaks to having effective control

356
00:17:51,440 --> 00:17:55,000
and oversight to that ESG information.

357
00:17:55,000 --> 00:18:00,549
To have that high-quality and fit
for purpose for decision-making.

358
00:18:00,549 --> 00:18:03,580
This publication is really resourceful,

359
00:18:03,580 --> 00:18:06,840
it's providing an overarching,
regulatory landscape

360
00:18:06,840 --> 00:18:10,140
and incorporating the COSO
Internal Control Framework.

361
00:18:10,140 --> 00:18:15,658
As, also, at RGP, we've also
built a consultation approach

362
00:18:15,658 --> 00:18:18,170
on this for our clients,

363
00:18:18,170 --> 00:18:21,970
incorporating the COSO
Internal Controls Framework.

364
00:18:21,970 --> 00:18:24,570
So that we can be able
to help guide the clients

365
00:18:24,570 --> 00:18:27,325
to be able to add control structure,

366
00:18:27,325 --> 00:18:31,991
and improve the reliance
of ESG-related information.

367
00:18:31,991 --> 00:18:36,010
Now, another strategy is around automation

368
00:18:36,010 --> 00:18:39,440
for the data collection and reporting systems.

369
00:18:39,440 --> 00:18:41,360
And while I don't, necessarily, think

370
00:18:41,360 --> 00:18:43,570
there's one true solution leader, yet.

371
00:18:43,570 --> 00:18:45,510
But there are definitely tools,

372
00:18:45,510 --> 00:18:47,090
currently, out there in the market,

373
00:18:47,090 --> 00:18:51,620
to help address either at the
initial collection process.

374
00:18:51,620 --> 00:18:55,440
To the generation of the report or disclosures,

375
00:18:55,440 --> 00:18:59,991
and there are, definitely, a few
that are more prominent.

376
00:18:59,991 --> 00:19:02,620
But I do think that the
platforms are maturing.

377
00:19:02,620 --> 00:19:06,491
They'll likely be a leader on this
as the platforms mature.

378
00:19:06,539 --> 00:19:08,780
But it's also important to
consider what systems

379
00:19:08,780 --> 00:19:11,610
you can leverage within your organization.

380
00:19:11,610 --> 00:19:13,309
You'll want to think about what system

381
00:19:13,309 --> 00:19:16,491
or a combination of systems,
can also be able to help you 

382
00:19:16,491 --> 00:19:17,991
pace all the way through.

383
00:19:18,658 --> 00:19:21,610
– Definitely, and depending what systems,

384
00:19:21,610 --> 00:19:24,030
as you can tell, as we talk about ESG,

385
00:19:24,030 --> 00:19:26,820
it applies across multiple
functions within an organization.

386
00:19:26,820 --> 00:19:29,490
But who are we, in IMA podcast,

387
00:19:29,490 --> 00:19:31,824
to not talk about the finance
and controllership

388
00:19:31,824 --> 00:19:34,429
function within an organization?

389
00:19:34,429 --> 00:19:37,570
What role does the finance team provide

390
00:19:37,570 --> 00:19:39,824
in the ESG reporting ecosystem?

391
00:19:39,824 --> 00:19:43,324
– Well, Adam, within the finance organization.

392
00:19:43,324 --> 00:19:47,991
Historically, controllership functions
are familiar with implementing 

393
00:19:47,991 --> 00:19:50,179
new reporting requirements.

394
00:19:50,179 --> 00:19:52,440
Working across multiple stakeholders

395
00:19:52,440 --> 00:19:55,700
and, at the same time, bringing that structure

396
00:19:55,700 --> 00:19:58,160
and that rigor to the process outcome.

397
00:19:58,160 --> 00:20:01,824
And this can be, similarly, said
about the FP&A's function, as well, 

398
00:20:01,824 --> 00:20:04,824
or the reporting and analysis role.

399
00:20:04,824 --> 00:20:07,210
Leveraging the same expertise

400
00:20:07,210 --> 00:20:09,419
to apply to ESG reporting.

401
00:20:09,419 --> 00:20:11,991
I really see the future role of accounting 

402
00:20:11,991 --> 00:20:15,920
and finance professionals, to be
ranging from the orchestrator

403
00:20:15,920 --> 00:20:19,324
to the gatekeeper of the ESG programs.

404
00:20:19,324 --> 00:20:22,824
Depending on the industry and the
business model of the organization.

405
00:20:22,824 --> 00:20:25,990
If the company is more
focused on addressing risk,

406
00:20:25,990 --> 00:20:30,157
finance may likely play a more
significant role, as an orchestrator.

407
00:20:30,157 --> 00:20:32,824
Versus if the focus is on supply chain;

408
00:20:32,824 --> 00:20:35,490
operations or sustainability office

409
00:20:35,490 --> 00:20:38,510
more likely would be the orchestrator.

410
00:20:38,510 --> 00:20:42,490
While finance is the gatekeeper
for the reported information.

411
00:20:42,610 --> 00:20:44,880
But regardless of which spectrum

412
00:20:44,880 --> 00:20:47,824
of the role the finance organization fulfills.

413
00:20:47,824 --> 00:20:50,920
One, definitive, role is to be the partner,

414
00:20:50,920 --> 00:20:54,657
working collaboratively
alongside other functions.

415
00:20:54,657 --> 00:20:58,100
I have seen similar experience
and value translate

416
00:20:58,100 --> 00:21:01,900
from financial reporting to ESG reporting.

417
00:21:01,900 --> 00:21:05,323
Besides staying on top of regulatory updates,

418
00:21:05,323 --> 00:21:07,200
finance and accounting professionals

419
00:21:07,200 --> 00:21:10,710
can also provide process
and governance structure

420
00:21:10,710 --> 00:21:12,823
to sustainability reporting.

421
00:21:12,823 --> 00:21:17,990
This includes developing standard
processes for data collection.

422
00:21:17,990 --> 00:21:21,250
With associated reviewers and workflows,

423
00:21:21,250 --> 00:21:24,157
with sign off functions to building

424
00:21:24,157 --> 00:21:27,890
similar support structure
such as a SharePoint site.

425
00:21:27,890 --> 00:21:31,090
For a one centralized
communication of requirements,

426
00:21:31,090 --> 00:21:36,100
such as with dates, processes,
sources, and training.

427
00:21:36,100 --> 00:21:39,156
The same attributes apply
to operational reporting.

428
00:21:39,156 --> 00:21:43,656
As organizations are setting
goals and targets to monitor

429
00:21:43,656 --> 00:21:46,156
and work across multiple stakeholders.

430
00:21:46,156 --> 00:21:48,490
Finance professionals can also bring

431
00:21:48,490 --> 00:21:52,323
that structure and the rigor
to process outcome.

432
00:21:52,323 --> 00:21:54,990
The shift towards the future
role and change

433
00:21:54,990 --> 00:21:56,010
can really be accomplished,

434
00:21:56,010 --> 00:21:58,823
through guidance development and education.

435
00:21:58,823 --> 00:22:01,840
Companies in more mature
stages of reporting,

436
00:22:01,840 --> 00:22:05,059
are developing guidance
and, typically, expected

437
00:22:05,059 --> 00:22:10,490
from the finance organizations
to enhance policies and procedures.

438
00:22:10,490 --> 00:22:13,450
That add to the structure and the rigor.

439
00:22:13,450 --> 00:22:15,490
But there are still many organizations

440
00:22:15,490 --> 00:22:17,910
not at that mature stage,

441
00:22:17,910 --> 00:22:20,559
and this is where education
and training is key.

442
00:22:20,559 --> 00:22:23,240
To educate the finance
and accounting professionals,

443
00:22:23,240 --> 00:22:27,156
to be the partners to the
ESG reporting ecosystem.

444
00:22:27,156 --> 00:22:29,489
The other aspects to consider

445
00:22:29,489 --> 00:22:32,823
is to educate the process or data owners.

446
00:22:32,823 --> 00:22:35,156
Who may not have been
previously involved

447
00:22:35,156 --> 00:22:38,900
from regulatory reporting
or audit perspective.

448
00:22:38,900 --> 00:22:42,656
To be able to strive for and
achieve for that level of detail

449
00:22:42,656 --> 00:22:46,323
and the quality of information expected.

450
00:22:46,323 --> 00:22:49,280
And as finance and internal
control functions

451
00:22:49,280 --> 00:22:52,179
are, increasingly, getting involved.

452
00:22:52,179 --> 00:22:55,830
We at RGP are also developing
the project methodology

453
00:22:55,830 --> 00:22:57,840
and an ESG training program.

454
00:22:57,840 --> 00:23:01,790
To educate our consulting
team on ESG reporting,

455
00:23:01,790 --> 00:23:05,409
and this is really to upskill our talent base,

456
00:23:05,409 --> 00:23:08,110
and to be able to anticipate our client need,

457
00:23:08,110 --> 00:23:09,489
and to be better prepared.

458
00:23:09,822 --> 00:23:11,820
– That's awesome, and it sounds
like you're doing great work,

459
00:23:11,820 --> 00:23:13,656
and those are some great insights.

460
00:23:13,656 --> 00:23:15,656
And we've covered a lot during this podcast.

461
00:23:15,656 --> 00:23:18,822
And, maybe, to finalize things,
maybe you can give 

462
00:23:18,822 --> 00:23:20,720
a summary of some final thoughts

463
00:23:20,720 --> 00:23:23,450
that you want our listeners
to remember, as they walk away.

464
00:23:23,656 --> 00:23:29,656
– Yes, happy to, and a key point
I want to emphasize is that,

465
00:23:29,656 --> 00:23:33,989
now, there are many more
external pressures and expectations

466
00:23:34,140 --> 00:23:38,155
to consider when companies
are issuing sustainability reports.

467
00:23:38,155 --> 00:23:40,929
And it's important to bring
in the right people,

468
00:23:40,929 --> 00:23:45,655
to either implement and manage
or to improve the ESG program.

469
00:23:45,655 --> 00:23:47,710
And this includes bringing in finance

470
00:23:47,710 --> 00:23:49,655
and accounting professionals.

471
00:23:49,655 --> 00:23:51,489
Who can be a valuable partner,

472
00:23:51,489 --> 00:23:54,989
working, collaboratively,
alongside other functions.

473
00:23:54,989 --> 00:23:57,489
I am, personally, passionate
about this topic.

474
00:23:57,489 --> 00:24:00,059
But more, importantly, how much value

475
00:24:00,059 --> 00:24:02,559
our finance and accounting profession

476
00:24:02,559 --> 00:24:06,700
can bring to a company's
sustainability program.

477
00:24:06,700 --> 00:24:08,489
We should advocate more for this role,

478
00:24:08,489 --> 00:24:10,020
and just provide the guidance

479
00:24:10,020 --> 00:24:12,322
associated to support the profession.

480
00:24:12,322 --> 00:24:15,155
And that's really my last
point, I want to emphasize.

481
00:24:15,155 --> 00:24:18,822
So thank you, Adam, for
having me on this podcast.

482
00:24:18,822 --> 00:24:21,322
And I'm very excited about
the future developments

483
00:24:21,322 --> 00:24:23,750
to come related to sustainability reporting.

484
00:24:24,322 --> 00:24:25,900
– Yes, thank you so much,
Janis, for coming on.

485
00:24:25,900 --> 00:24:28,322
I really appreciate you sharing
your insight with the audience.

486
00:24:28,322 --> 00:24:30,488
< Outro >

487
00:24:30,488 --> 00:24:34,155
– This has been Count Me In,
IMA's podcast providing you

488
00:24:34,155 --> 00:24:36,120
with the latest perspectives
of thought leaders

489
00:24:36,120 --> 00:24:38,110
from the accounting
and finance profession.

490
00:24:38,110 --> 00:24:40,655
If you like what you heard,
and you'd like to be counted in,

491
00:24:40,799 --> 00:24:43,200
for more relevant accounting
and finance education,

492
00:24:43,200 --> 00:24:48,322
visit IMA's website at www.imanet.org