ESG Progress Pulse Powered by Socialsuite Connecting profit, purpose and impact for small to medium listed companies
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01 December 2020 ©
ESG Progress Pulse
Powered by Socialsuite
Connecting profit, purpose and impact
for small to medium listed companies
First ASX-listed adopters of the World Economic Forum’s
new global ESG Standard Reporting Framework
ESG Progress Pulse by Socialsuite
ASX:VUL ASX:MNB ASX:EMN ASX:EXR ASX:MYQ ASX:WHK
1
Contents
Significance 3
Compliance 4
Challenge 7
Consolidation 8
Technology 9
Framework 10
Survey 11
Reporting 13
First ESG Reports 15
Reporting 21
2
ESG significance ESG and Impact Investing
Investor demand ESG and impact investing
have become key terms for
In 2020, 33% of the $51.4
trillion in total U.S. assets
both investors and fund under professional
managers, leading a new management use ESG
path to how companies are investment criteria –
being researched whilst also with demand for ESG
having influences on fixed compliance continuing to
income investments. rise sharply.
Environmental
Social Holding business to account
Governance ESG offers a tool and roadmap for investors and society to
hold companies to account, to make sure that the issues
we care about throughout society (social justice, equality,
The three key factors in measuring diversity, environment, etc.) are reflected and appropriately
the sustainability and ethical addressed by the companies we invest in – and through our
investments we can influence these companies.
impact a company makes.
3
ESG compliance Why is ESG important
for small-medium ASX
Small & medium listed companies?
ASX-listed companies
Access ESG Secure top tier Attract the most Positive community Shareholder returns
funds customers talented teams perception with positive impact
There is currently Top companies are Smart people Doing business at all Be proud in creating
more ESG money conscious of ESG in no longer want levels is just easier positive change in the
than there are ESG their supply chain. to work for non when the community world while providing
investment ready ESG companies. wants you to exist and outsized returns to
opportunities. supports you. shareholders.
4ESG first movers ESG Dashboards are
included at the end of
Early adopters this report.
on the ASX
ASX:VUL ASX:MNB ASX:EMN
Vulcan Energy Minbos Resources Limited Euro Manganese Inc.
Exists to decarbonize the currently Exploration and development of a phosphate Green and European source
high carbon production footprint of (fertilizer) project in Angola. Working with of ultra high purity manganese
lithium-ion batteries used in electric the International Fertilizer Development for electric vehicle batteries
vehicles by producing a world-first Centre to develop education programs to developed from the recycling of
Zero Carbon Lithium® hydroxide small holder farmers, utilising its phosphate a tailings deposit located in the
product in Germany. fertilizer to increase crop yields. Czech Republic.
See ESG dashboard See ESG dashboard See ESG dashboard
5ESG first movers ESG Dashboards are
included at the end of
Early adopters this report.
on the ASX
ASX:EXR ASX:MYQ ASX:WHK
Elixir Energy MyFiziq Whitehawk
Elixir Energy is exploring for Accessible, advanced human Empowering a fearless internet through Online
natural gas on the Mongolian- imaging by smartphone app for Cybersecurity Exchange platform that provides
China border to replace burning the med-health, population health, cyber risk scoping, prioritization and mitigation
of coal for energy in China. fitness and insurance sectors. products and services.
See ESG dashboard See ESG dashboard See ESG dashboard
6ESG challenge
Inconsistent indicators Creating sustainable shared value
Companies that align their goals to the long term
goals of society are most likely to create long term
sustainable value, while driving positive outcomes for
business, the economy, society and the planet.
Sustainable Development Goals
The World Economic Forum (“WEF”) identified in
2017 that the UN Sustainable Development Goals
(SDGs) are the best roadmap for corporations to align
their goals to the long term goals of society.
Measuring and reporting consistently
The key challenge for many companies is the lack of
a universal and consistent framework to measure and
report the shared and sustainable value they create.
7ESG consolidation
Universal ESG framework
Toward a common ESG 2020 launch of common Adopting a universal ESG
framework metrics framework
The World Economic forum set In September 2020, WEF This universal ESG framework
out, with the support of the “big launched its White Paper consist of 21 core and 34
four” accounting firms to create a “Measuring Stakeholder expanded metrics and disclosures
common framework to measure and Capitalism: Towards Common aimed at mainstreaming reporting,
disclose meaningful and relevant Metrics and Consistent Reporting reducing fragmentation, and
aspects of corporate performance of Sustainable Value Creation” progressing toward a generally
on environmental, social and
which proposes a universal set of accepted international accounting
governance matters and contributions
ESG metrics and disclosures. standard for ESG.
to progress the SDGs on a consistent
and comparable basis.
8ESG technology Socialsuite technology powers ESG
Progress Pulse making it easy to
Socialsuite solution get started and grow your ESG
credentials over time.
01 02 03 04
Commit to ESG Pulse Baseline ESG survey Materiality and priority Improve and compare
Sign up to the ESG Complete the baseline Discover and identify Keep momentum by completing
Progress Pulse to commit ESG Progress Pulse which ESG metrics are the ESG Progress Pulse
to making progress toward survey to understand material to your company quarterly survey to track your
universal ESG metrics. where your Company and which disclosures progress, demonstrate real
stands in relation to ESG can be progressed swiftly action in comparison with your
progress and identify to establish robust ESG peer industry group and extend
your next steps. credentials. ESG metrics as you grow.
9Governance
Agency, accountability and stewardship are “good governance”
ESG framework The definition of governance is evolving as organisations are
increasingly expected to define and embed their purpose at the
centre of their business.
Four SDG pillars
People
Ending poverty and hunger, in all their forms and dimensions
Ensuring that all human beings can fulfil their potential in
dignity and equality and in a healthy environment.
Planet
Protecting the planet from degradation
Sustainable consumption and production, managing natural
resources, and taking action on climate change, to support the
needs of present and future generations.
The universal ESG metrics
fall into four pillars aligned
with the SDGs and principal Prosperity
Ensuring that all human beings can enjoy
ESG domains. prosperous and fulfilling lives
Economic, social and technological progress that occurs in
harmony with nature and benefits all. 10ESG Progress Code
GO-01
Theme
Governing purpose
Indicator
1. Setting purpose
Pulse
GO-02 Quality of governing body 2. Governance body composition
GO-03 Stakeholder engagement 3. Material issues impacting stakeholders
4. Anti-corruption practices
Reporting framework GO-04 Ethical behaviour
5.
6.
Mechanisms to protect ethical behaviour
Integrating risk and opportunity into
GO-05 Risk and opportunity oversight
business process
7. GHG emissions
PL-01 Climate change
8. TCFD implementation
PL-02 Nature loss 9. Land use and ecological sensitivity
PL-03 Freshwater availability 10. Water consumption
A simple, material ESG 11. Diversity and inclusion
12. Pay equality
reporting framework PE-01 Dignity and equality
13. Wage level
14. Child, forced or compulsory labour
The ESG Progress Pulse reporting
PE-02 Health and wellbeing 15. Health and safety
framework utilises the 21 universal
ESG metrics and allows companies PE-03 Skills for the future 16. Training provided
to determine what is material to their 17. Rate of employment
PR-01 Employment and wealth generation 18. Economic contribution
business, set priorities, and provide 19. Financial investment contribution
disclosures and explanations. Each
PR-02 Innovation of better products and services 20. Total R&D expenses
disclosure can be self-reported, then
PR-03 Community and social vitality 21. Total tax paid
verified, and ultimately audited.
11ESG Progress
Pulse Quarterly
Survey
Quarterly reporting to
track ESG progress
The ESG Pulse survey is self reported
every quarter by the company to
measure, track and report progress
toward the toward the 21 universal
ESG metrics. A baseline survey is
completed upon commitment to the
ESG Progress Pulse, followed by
quarterly progress surveys.
12Explanation
E When a disclosure is not material or cannot
be reported (yet).
ESG reporting
Disclose or explain Development
D The company is making progress toward
reporting this disclosure or action.
The ESG Progress Pulse dashboard
uses five categories to describe the Reported
status of disclosures. R A disclosure has been self reported by
the company.
ESG reporting for all sectors and industries
The ESG Progress Pulse metrics and disclosures are
intended to be universal and industry agnostic. Verified
Some metrics may not be feasible, relevant or easy to V The company’s reported disclosure has
been verified with support documentation.
implement immediately due to confidentiality constraints,
legal prohibitions, data availability, geographic
idiosyncrasies or lack of materiality. In those cases,
Companies can ‘explain’ rather than ‘disclose’.
Audited
A Reported and verified disclosures are
audited by an independent third party.
13ESG dashboard Priority & Timeframe
Companies set their own ESG disclosure priorities and
Terminology & explanation review them every quarter, choosing which metrics they
aim to progress over the next three to six months. A
timeframe can be provided as an indication when the
company targets to progress and commence full
disclosure of a specific metric.
Disclosure
Maturity Companies are encouraged to disclose all material
Each disclosure comes with a number of actions a company metrics. In cases where a specific metric is not material
can take to progress toward satisfying the criteria for reporting for a company’s long-term value creation, the company
the disclosure - we refer to these actions as Maturity. should explain why the specific information is omitted and
the reasons for the omission. A disclosure can therefore be
Companies self-report on disclosures and maturity actions. ‘Reported’ (R), ‘Explained’ (E), or under ‘Development’ (D).
Subsequently, companies provide documentation to back-
up their disclosures. Once sufficient documents are provided Materiality
to verify the reported disclosure, the status changes to ‘V’
(verified). Companies will consider the full set of 21 ESG metrics and
disclosures, but only report on all those that are material
Companies can further back up their ESG credentials by or relevant to the company. Companies are encouraged
having their disclosures audited by an independent third to apply their own materiality lens to inform what they
party - changing their status to ‘A’ (audited). disclose and what they explain.
14For full ESG Report including company Narrative and Explanations please contact the company directly. 15
For full ESG Report including company Narrative and Explanations please contact the company directly. 16
For full ESG Report including company Narrative and Explanations please contact the company directly. 17
For full ESG Report including company Narrative and Explanations please contact the company directly. 18
For full ESG Report including company Narrative and Explanations please contact the company directly. 19
For full ESG Report including company Narrative and Explanations please contact the company directly. 20
ESG reporting 1
Initial adoption
In 2020 six ASX-listed companies committed to be the
For small to medium first to adopt the ESG Progress Pulse to enhance their
ESG credentials.
ASX companies
Scale to 50 companies
2 By the end of 2021 we aim to provide the ESG
Progress Pulse to 50 companies.
Learn and compare
3 We encourage companies to learn and compare, see
What is the purpose what the best in class ESG reporting to a new global
standard can do for them.
and goal of the ESG
Progress Pulse?
Start your journey today
We offer small-medium companies
4 Any company, large or small, can start enhancing their
with a simple way to start ESG ESG credentials today with the ESG Progress Pulse.
reporting to a world-class standard. Contact us for a free baseline ESG assessment.
21Start your ESG reporting today.
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