Going Beyond ESG

It seems Environmental, Social and Governance (ESG) investing and reporting is one of the most talked about subjects at the moment. This is not surprising considering that in 2020 net inflows into ESG funds in the U.S. alone reached $51.1 billion and by the end of the first quarter in 2021, Global ESG investing was nearly $2 trillion. 

There have been many driving forces for the rise of ESG including, but not limited to, the global pandemic, the climate crisis and increasing client demand, but as interest in ESG has skyrocketed, so have the questions and challenges, including the question of what does it all mean for the social value movement and those striving to achieve the sustainable development goals? Despite the hype, there are clear weaknesses in current ESG practices; behaviours are not changing enough to address rising social inequalities or adequately tackle the climate crisis.

There are clear weaknesses in current ESG practices; behaviours are not changing enough to address rising social inequalities or adequately tackle the climate crisis. As SVI’s CEO Ben Carpenter noted in a blog from 2021 - “This is such a critical time for our movement; yes, it is good that the capital markets are now very focussed on social and environmental issues but much of this ESG measurement is being confused with more mature sustainability accounting and reporting and could be a dangerous distraction. Achieving the SDGs and tackling complex problems such as climate change and inequality require ‘systems thinking’, measurement of outcomes and a long-term view of value creation.”

Going Beyond ESG

In March 2022, Social Value International responded to this by launching our campaign “Going Beyond ESG”.

The aims of the “Going Beyond ESG” Campaign:

Rather than be critical of ESG as a movement, we want to work with members and partners to provide constructive challenge and present practical solutions for how ESG can evolve. The “Going Beyond ESG” campaign will increase knowledge by sharing the latest developments within ESG Investing and ESG reporting, challenge the status quo by exploring the main problems with ESG reporting, Inspire innovation by proposing solutions to the problems and empower SVI members to play an active role with the ‘ESG agenda’.

Throughout March 2022, SVI launched this campaign by hosting a series of online discussions, webinars and conferences; as well as conducting the “Global Perspectives on ESG” survey. The findings from this consultation and series of discussions have formed the key actions of the “Going Beyond ESG” Campaign that will ensure we can transform the ESG agenda and achieve the aims of the “Going Beyond ESG” Campaign.

Actions

  • Clarity over concepts

    Clarity over concepts

    SVI will work to increase clarity around the concepts of ESG, Sustainability, social value, wellbeing, and impact by developing greater understanding and connectivity.

  • Harmonisation of Standards

    Harmonisation of Standards

    SVI will continue to work in collaboration with other IMM Standard Setting bodies through partnerships and consultations, to develop further harmonisation of standards and an integrated approach across the E, S and G.

  • Measure what matters

    Measure what matters

    SVI will strengthen the argument for the double materiality approach and promote measurement that goes beyond outputs and measures changes to aspects of wellbeing (outcomes) for all materially affected stakeholders.

  • Promote Valuation

    Promote Valuation

    SVI will continue to develop standards and best practice for impact valuation that supports more effective and transparent decision making.

  • Assurance and Verification

    Assurance and Verification

    SVI will continue to develop and promote Assurance and Accreditation around the world. SVI will also be bolder in calling out bad practice, to ensure that impact washing does not go un-noticed.

  • Amplify marginalised voices

    Amplify marginalised voices

    SVI will work in partnership with others to ensure that as ESG and the social value movement is actively shifting power and amplifying marginalised voices, ensuring that those voices that have been traditionally excluded from decision making are heard and included.

  • Skills and professionalisation

    Skills and professionalisation

    SVI will develop a diverse community of practitioners, from different disciplines, to evolve ESG. This will include supporting trainers to develop a range of training services that meets the needs of practitioners.

  • Policy and Regulation

    Policy and Regulation

    SVI will empower our members and campaign together for stronger policies and regulatory frameworks for non-financial reporting and accounting at a national and international level.

Beyond ESG Month

The “Going Beyond ESG” Campaign launched in March 2022, with a month-long series of discussions and thought-leadership. Discover more, and catch up on the key discussions below:

All webinars and discussions were recorded, and are available to members of Social Value International and affiliated Joint Member Networks to watch back in the SVI Members Area.

Thought Leadership