7

Click here to load reader

Corporate Sustainability Strategic, Finance & Governance Plan

Embed Size (px)

DESCRIPTION

Role of Corporate Environmental Governance and Strategy as Drivers to Company Stock Value Growth

Citation preview

Page 1: Corporate  Sustainability  Strategic,  Finance &  Governance  Plan

Corpora te Sus ta inab i l i t y S t ra tegy, F inance & Go vernance P lan

www.env i rongrade .com

A framework to develop and Implement a

CORPORATE SUSTAINABILITYSTRATEGY, FINANCE & GOVERNANCE PLAN

Realizing the Challenge of Making Sustainability Work

Page 2: Corporate  Sustainability  Strategic,  Finance &  Governance  Plan

Corpora te Sus ta inab i l i t y S t ra tegy, F inance & Go vernance P lan

www.env i rongrade .com

ESGBenchmarking

Sustainability Mainstream

ActionPlanIdentify

Business Drivers

Primary Activities

Support Activities

Sustainability Governance

Sustainability Finance

Scope of Competitiveness

Developing Leadership Competence for Sustainability Value Creation

Value-Chain

Create a Corporate Sustainability VISION

Sustainability Strategy Key-Areas

Stakeholder-Based Management

Investor-Based Management

Corporate Sustainability-Risk

Strategic Map

External ImpactsGap Analysis

SWOT

Strategies & Goals Setting

Building Sustainability Mainstream Framework

Corporate Susta inabi l i tyStrategy, F inance & Governance

P lanFramework

Current & Prospective ESG

Assessment

GoalsDetailing &

Breaking-Down

Implementation,Monitoring & Review Tools

Stakeholder Engagement

Process

SustainabilityCommunication

Platform

Sustainability Reporting

ROSS Return on

Sustainability Strategy

Sustainability Governance Strategies & Goals

Value-Chain Advantages on Sustainability Initiatives

Sustainability Finance Strategies & Goals

Page 3: Corporate  Sustainability  Strategic,  Finance &  Governance  Plan

Corpora te Sus ta inab i l i t y S t ra tegy, F inance & Go vernance P lan

www.env i rongrade .com

Corporate Susta inabi l i ty Mainstream

& the Value-Chain Intersect ion Paradigm

Support Activities

Primary Activities

Sustainability Mainstream

Page 4: Corporate  Sustainability  Strategic,  Finance &  Governance  Plan

Corpora te Sus ta inab i l i t y S t ra tegy, F inance & Go vernance P lan

www.env i rongrade .com

Ma

rgin

Ma

rgin

Company Infrastructure

Su

pp

ort

Acti

vit

ies &

K

no

wle

dg

e C

ap

ita

l

Human Capital Management

Innovation andR&D Capital

Leadership & Competence Capital

Corporate Sustainability Mainstream

Upstream Logistic &

Supply Chain

Inbound Logistic & Operations

Downstream Logistic & Channels

Marketing & Sales

End-Cycle Services

Primary Activities

Sustainability Strategy: Business Drivers & Key-Performance Measuring; Benchmarking; ESG Assessment; Vision, Mission; Objectives/Goals; Action Plan ; Incentives

Sustainability Finance & ROSS:TBL Value Creation; Accounting Framework; TBL Balance Sheet; EP & DJSI Standards; Risk Map & Measuring;

Promptness and ability to convert Sustainability Strategy into Shareholders/Stakeholders Value; Stakeholder-Based Management ApproachStakeholder Sustainability Education initiatives

Sustainability Governance Framework:Compliance & Legal ; Policies; Accountability; Commitments; Transparency; Reputation; Stakeholders Engagement; Value-Chain Ethical Procedures; Communication; Reporting

Sustainability BI & analytics platform;Capex-Opex sustainability-based decisions;Corporate Sustainability Governance Structure

Environmental-based design;Clean technologies development;Environmental material specifications

Life-cycle analysis and process implementation

Creating and internalizing a culture for sustainability;Developing capabilities on sustainability-based management ;Corporate Sustainability Education; Sustainability-oriented Compensation System

Select Responsible suppliers & outsourcers;

Stimulating less-harmful material uses, safe storage, transportation and waste disposal

Carbon & Water Footprint

Select Responsible distributors;

Stimulating less-harmful material safe storage, transportation , packaging and waste disposal

Stimulating ethical and anti-corruption competing practices, fraud prevention, new process for reducing pollutants discharge and waste; improving energy use; striving for upstream-downstream ESG internationally acceptable standards adoption

Corporate image & reputation

Corporate Sustainability from the

Value-Chain Perspect iveR

OS

S

RO

SS

Page 5: Corporate  Sustainability  Strategic,  Finance &  Governance  Plan

Corpora te Sus ta inab i l i t y S t ra tegy, F inance & Go vernance P lan

www.env i rongrade .com

Core Business Design

Global Feasibility

Local Arrangements

Legal & Financial Diligences

Feasibi l ity

Equipment & Facilities

Infrastructure

Plant Building

Organisation & Legal Arrangements

Implementation

Value-Chain Design

Logistics Up & Down

Production

Marketing & Sales

Operation

Corporate Sustainability-Risk Strategic Map Sources of Either Value Creation or Destruction

Asset Protection

Technology OperationFinancial

Global-Local Reputation

BusinessContinuity

Legal & Regulatory

Environ mental Social

Value-Chain Stakeholders

Benchmark ing

Domain of Corporate Environmental-Social Governance (ESG)

Corporate Sustainability Strategic Plan Intersection

Domain of the Capex-Opex Dilemma & Traditional Risk

Domain of Traditional Shareholder-Based Corporate Strategic Plan

Funding

Free Cash Flow

Private Equity

IPO

Project Finance

Human Capital

Changing Leadership

Domain of Corporate Sustainabil ity-Risk Assessment

Page 6: Corporate  Sustainability  Strategic,  Finance &  Governance  Plan

Corpora te Sus ta inab i l i t y S t ra tegy, F inance & Go vernance P lan

www.env i rongrade .com

ROSSReturn on Sustainability Strategy

Revenue GrowthCost of Capital

Reduction

Net Profit & Dividend

Market Value Premium

Free Cash Flow Generation

Margin Improvement

Reputation Price

Premium

Operation Cost &

Productivity

Cutting-Edge Technology Innovation

New Market Entry

Market Share

Growth

Risk Premium

Gains

Market Ratings Grading

Corporate Brand &

Reputation

Sustainability-Risk Management Platform, Compliance

& Legal Achievements, Sustainability Accounting &

Balance Sheet, Sustainability Reputation Building;

Stakeholders Value-Based Governance, Engagement

Initiatives; Value-Chain’s Stakeholder Integration and

Commitment; Leadership Competence for

Sustainability Value Creation; Sustainability

Communication & Reporting

Sustainability Fund Flow Mapping, Social &

Environmental Cost Internalization,

Sustainability-Based Capex–Opex Decision,

Private Equity & Capital Markets Sustainability

Ratings Improvement:: DJSI, UNEP Finance

Project Financing Sustainability Standards

Achievement: Equator Principles, Fiduciary

Responsibility, Insurance

Value-Chain Advantages on New Sustainability-Based

Initiatives: Climate Change e Carbon Finance, Water

Conservation and Quality, Alternative Energy Production

& Use, Responsible Property Investing, Social Impacts,

Biodiversity and Ecosystems

Environmental-based operational process, Clean

Technologies Material Specifications Development

Corporate Sustainability Strategy

Corporate Sustainabi l ity Mainstream Value-Creation Drivers and Levers

ROSS Return on Susta inabi l i ty Strategy

Framework- From the Perspect ive of the Shareholder

Value

Corporate Sustainability Finance Corporate Sustainability Governance

Power of

Pricing

ESG Knowledge

Capital

ESG Human

Capital Focus

New ES Focused Products

ESG Leadership Initiatives

Value-Chain Stakeholder Engagement

Legal & Voluntary

Compliance

Page 7: Corporate  Sustainability  Strategic,  Finance &  Governance  Plan

Corpora te Sus ta inab i l i t y S t ra tegy, F inance & Go vernance P lan

www.env i rongrade .com

José Antônio Campos [email protected]

São Paulo+55 11 3717-4188

Rio de Janeiro+55 21 3717-4188

Belo Horizonte+55 31 3231-4188

Wilmington+1 302 482-8188