PowerPoint Presentation
HIGH LEVEL POLITICAL FORUM IN 2016 ENSURING THAT NO ONE IS LEFT
BEHIND - UDESAUNECA May 16, 2016
May, 24 2016
Communicate the value of sustainability to investors
Implement the value driver model
The financial and market performance of any firm is the product
of a complex array of factors. To fully integrate sustainability
into financial markets, companies need to incorporate
environmental, social and governance(E S G) information into all
communication with investors.
The UN Global Compact and Principles for Responsible Investment
(P RI) have developed a tool for companies to better assess and
communicate the financial impact of their sustainability strategies
and help investors integrate sustainability data into their
existing investment process. The Value Driver Model utilizes key
business metrics to determine and illustrate how corporate
sustainability activities contribute to overall performance.
1
tigist Afework (tA) - GLOBAL COMPACT 100tigist Afework (tA) -
Demonstrating the financial potential of sustainability.tigist
Afework (tA) - The Global Compact 100 is a stock index composed of
a representative group of UN Global Compact companies, Selected
based on the ten principles and evidence of executive leadership
commitment and consistent base line profitability.tigist Afework
(tA) - Developed by S u st a i n a l y t i c s, the Global compact
100 does no t look at sustainability in isolation of basic
financial health, rather it marries corporate performance on
environmental, social and governance (E S G) issues with a
requirement of consistent base line profitability.AFRICA REGIONAL
FORUM ON SUSTAINABLE DEVELOPMENT- ECONOMIC COMMISSION FOR
AFRICA
May 24, 2016
financial market overview
Creating markets that deliver greater value to society
During the global financial crisis, an economic setback in one
part of the world quickly spread elsewhere. To prevent this in the
future, investors today expect businesses to be more transparent
and accountable. They must communicate openly,and not just about
their financial practices. Social and environmental challenges can
also spread easily from one region to another.
That's why more and more capital markets - including major
institutional investors - now evaluate companies' performance on
environmental, social and corporate governance (E S G) issues. For
instance, issues related to climate change,water, human rights, or
anti corruption can affect companies' ability to create value.
Companies that proactively manage E S G risks and opportunities are
more likely to have stronger long term financial performance. This
makes them better investors. Businesses that are transparent build
trust and contribute to a stronger and fair market. They also can
enjoy strategic opportunities for growth.
Investing in sustainability can help create more stable and
prosperous economic systems.
2
tigist Afework (tA) - SUSTAINABLE STOCK EXCHANGE
INITIATIVEtigist Afework (tA) - Stock exchanges have an important
role to play in advancing sustainability in the capital
markets.tigist Afework (tA) - The sustainable stock exchange (SSE)
initiative provide and effective platform to dialogue between the
UN, stock exchange, investors, companies and regulators. By
exploring how stock exchanges can work with these actors , the SSE
is working to create more sustainable capital markets.tigist
Afework (tA) - Join over 20 exchanges around the world who have
become SSE partner exchanges, by making a voluntary public
commitment to promote sustain ab i l t y in your market. Security
regulators, investors, companies and other stakeholders are also
invited to participate in the SSE.RETURN ON CAPITAL EMPLOYED - (
OR, EQUITY SHAREHOLDER VALUE, ECONOMIC VALUE ADDEDGROWTH new
markets & geographies- new customers and market shares Product
and Services Innovation long term strategies PRODUCTIVITY
Operational efficiency Human Capital Management Reputation Pricing
PowerRISK MANAGEMENT OPERATIONAL & REGULATORY RISK REPUTATIONAL
RISK SUPPLY CHAIN RISK LEA DE RSHIP & ADAPTABILITY
3
4
Africa regional forum on sustainable development
5
6
7
