Costs & Constraints
As part of an #ESG Transformation Initiatives, the managing investor perception can offer a quicker, standardised and more effective way to produce the initial blueprint. However, chasing ratings does have its downsides too (read here). Naturally, this would be augmented with proprietary tools, but if companies are not mapping internal KPIs against their market perception, then a data/process lineage exercise may need to be completed before the transformation to ESG Maturity work can begin.
Accordingly, consultancy costs would be unnecessarily high, where tranches that could have cost <$200k end up costing well in excess of >$2m.
If you are a listed company then it would not be a prudent approach to measure your risk exposures through your own corporate lens (as a starting point). The frameworks and activist groups are already tracking companies like yours, therefore by getting a view on the gaps in how you are tracked or rated, you could save a considerable cost compared to starting the transformation process driven by weak internal impact assessments. Further still, even if you are not a listed company, we can bench mark your business against an organisation that has already got the required ESG maturity.