2022 BLUE BOOK - FCLTGlobal
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2022 B LU E BOO K
REWIRING CAPITAL MARKETS
TO DRIVE LONG-TERM VALUE
B U S I N E S S LE A D E R S H AV E LO N G S T R U G G LE D TO W E I G H I M M E D I AT E F I N A N C I A L
N E E D S AG A I N S T O B J E C T I V E S M A N Y Y E A R S I N TO T H E F U T U R E .
FCLTGlobal’s work makes it clear that those who participate in the capital markets can improve the
system. In July 2016, CPP Investments and McKinsey teamed with BlackRock, Dow, and Tata Sons to
found FCLTGlobal as an independent non-profit. Businesses and investors from around the world came
together to stem the tide of short-term actions and their consequences. Since our founding, we have
worked with our members to provide evidence and research that will help to make long-term practices
the norm.
Now, FCLTGlobal celebrates its fifth year in operation. Our
mission remains to focus capital on the long term to support
a sustainable and prosperous economy, and we are rewiring
capital markets to drive long-term value creation for savers
and communities.
Practical actions and strategies, rather than theory, have
helped to move the needle. It is in that spirit that FCLTGlobal
was founded. It is also in that spirit that we present the first
edition of the FCLT Blue Book, a showcase of how long-term
decision-making can create positive outcomes for companies,
investors, and their millions of stakeholders globally.
FCLTGlobal’s members drive the movement towards sustainable capitalism. The pages that follow are
a compilation of real-world examples of how FCLTGlobal’s members are putting long-term strategies
into practice today, the first of what we expect to be many such projects to crystallize how companies
and investors are translating research to action.
It is our hope that these practical illustrations will inspire others to embrace the mission of focusing
capital on the long term. We encourage readers to consider models of long-term decision-making similar
to those featured here, and we thank those who have contributed their time, effort, and valuable insight
to this project.
Around the world and across the investment value chain, our members and many other organizations like
them are looking beyond the next quarter and seeing the bigger picture: prioritizing future objectives
over near-term targets will inevitably produce better, more equitable, and more sustainable performance
over the long term.
Sincerely,
Sarah Keohane Williamson
Chief Executive Officer
TABLE OF CONTENTS 2 Alberta Investment Management Corporation (AIMCo) 21 JP Morgan Investment Management 3 APG Asset Management 22 Kempen Capital Management 4 Baillie Gifford 23 Kering 5 Barclays 24 KPMG 6 BlackRock 25 Mastercard 7 Blackstone Group Inc. 26 McKinsey & Company 8 Brookfield Asset Management Inc. 27 MSCI Inc. 9 Bunge 28 Nasdaq 10 Caisse de dépôt et placement du Québec (CDPQ) 29 Nuveen Asset Management 11 The Carlyle Group 30 Ontario Teachers’ Pension Plan 12 CPP Investments 31 Russell Reynolds Associates 13 Dow 32 Schroders 14 DSM 33 State Street Corporation 15 Edelman 34 Unilever 16 Ernst & Young 35 Vista Equity Partners Management, LLC 17 EQT Partners 36 Votorantim 18 Federated Hermes 37 Washington State Investment Board 19 GIC Private Limited 38 Wellington Management Company 20 IFM Investors
ALBERTA INVESTMENT MANAGEMENT
CORPORATION (AIMCO)
E VA N S I D DA LL | C H I E F E X ECUTI V E O FFI C E R
D R I V I N G R E TU R N S A N D M A N AG I N G R I S K F O R T H E LO N G -T E R M
C R E AT I O N O F A N I N - H O U S E A R T I F I C I A L A L P H A L AY E R ’ S A I A N D M L A P P L I C AT I O N S
I N T E L L I G E N C E A N D M AC H I N E L E A R N I N G A L S O P R OV I D E R E V E N U E S O U R C E
JOINT VENTURE In AIMCo’s case, the organization has and will continue to
As artificial intelligence (AI) and machine learning (ML) benefit from AlphaLayer’s AI and ML solutions, but there
began to disrupt industries around the world, it became is an additional upside. The joint venture is expected to
obvious that investment managers would have to harness make money, too. Commercializing AlphaLayer’s AI and ML
the power of these technologies or risk being left behind. applications will add an additional revenue source to the
It seemed that the options were to develop AI and ML benefit of AIMCo clients, a premise that is expected to pay
capabilities in-house or wait for third-party solutions to off for decades to come.
be developed and then pay to play.
For AIMCo, one of Canada’s largest institutional investment T H E F U T U R E ? H U M A N - M AC H I N E S O LU T I O N S
managers, a third option presented itself, one that offered The AlphaLayer team has been focused on delivering AI
potential to benefit clients for years to come. In 2019, AIMCo solutions across all areas of the investment management
partnered with Edmonton-based AltaML, a machine learning industry from back to front office by building solutions
company, to establish a joint venture called AlphaLayer. that create operational efficiencies, generate innovations
Since creation, AlphaLayer has built AI and ML solutions in risk management and create unique sources of
to help AIMCo associates process trade matches, forecast investment returns. However, according to Chad Langager,
changes in credit ratings, develop sentiment insights by way AlphaLayer’s Managing Director, there is even more
of natural language procession (NLP) and generate more potential yet to be realized. “Human/AI integration within
accurate risk forecasts. firms is not yet solved in any industry. This uncertainty
will continue to cause ‘bumpiness’ as AI/ML is integrated
and adopted more and more. There is every indication,
I NTE G R ATI O N O F A I A N D M L A LLOW
however, that human-machine solutions will be far more
I N V E S TM E NT TE A M S TO F O C U S O N
powerful than either human or machine-based solutions.
H I G H E R -VA LU E WO R K
We feel that is the future and are excited about proving it
“Pretty early on, we developed efficiencies by incorporating
out with AIMCo.”
AI into some operational processes — and the value of
that should not be underestimated,” said Dale MacMaster,
AIMCo’s Chief Investment Officer. “But everyone was
keen to see AI and machine learning boosting investment
returns. I can say now with some confidence that we have a
trading strategy that is using AI to process data and identify
opportunities and it’s adding value to our clients’ portfolios.”
While AlphaLayer has provided short-term success, the
strategy is inherently long term. Business leaders and
investors universally agree that artificial intelligence
and machine learning will transform businesses by
reducing costs, managing risks, streamlining operations,
accelerating growth and promoting innovation. Using and
developing strong AI and ML capabilities allows team
members to focus on higher-value work.
2 2022 BLUE BOOKAPG
RO N A LD W U IJSTE R | C H I E F E X ECUTI V E O FFI C E R
TH E E S TA B LI S H M E N T O F S U S TA I N A B LE D E V E LO P M E N T I N V E S T M E N T S A S S E T OW N E R P L AT F O R M
( S D I AO P)
APG Asset Management, together with, AustralianSuper, U S I N G A I TO Q UA N T I F Y C O N T R I B U T I O N O F
British Columbia Investment Management Corporation I N V E S T M E N T S TO S D G S
(BCI) and PGGM in 2020, jointly established the To ensure alignment with the United Nation Sustainable
Sustainable Development Investments Asset Owner Development Goals and quantify the contribution of an
Platform (SDI AOP). This platform helps to accelerate investment to such goals, the SDI Asset Owner Platform
investments to deliver on the Sustainable Development developed an SDI Methodology which consists of:
Goals and thereby support investment outcomes for
i. detailed taxonomies and guidelines
end beneficiaries. As asset owners, we are creating a
community of investors who are jointly advancing the ii. a methodology to define the classification of the SDIs
SDI AOP standard for investing into the UN Sustainable iii. SDI classifications
Development Goals SDGs. The SDI AOP aspire to drive
innovation in the investment industry with the standard iv. the rating methodology of SDI classifications
being made available to all market participants.
To translate the SDI taxonomy into a classification system
to determine whether a given company is or is not SDI
S O LV I N G DATA C H A L L E N G E S eligible, we partner with Entis, a data and software
Global investors increasingly consider the SDGs relevant technology firm (in which APG is shareholder). Entis
to their investment strategy, policy, asset allocation, uses natural language processing of structured and
investment decisions and active ownership, according unstructured data (annual reports, trade descriptions
to research by the Principles for Responsible Investment and website text) to determine the SDI status (Majority,
(PRI). However, a lack of quality data to identify Decisive, Non-SDI), SDI Confidence, SDI Revenue
contributions to the SDGs has been an impediment Percentage and Main SDGs for each company. Entis
for investors, and companies struggle to adapt their currently covers 8,700 entities (equities & bonds).
disclosures to meet investor needs. By providing a
globally consistent SDG measurement framework, the
SDI Asset Owner Platform helps investors to imbed A B I L I T Y TO R E P O R T T R A N S PA R E N T A N D
the SDGs into their investment processes. C O N S I S T E N T DATA
For the SDI AOP, the primary focus is on companies’
positive contribution to the SDGs through their products
S H A R E D U N D E R S TA N D I N G O F S U S TA I N A B L E and services (the ‘what’), whereas for ESG is typically
D E V E LO P M E N T I N V E S T M E N T S ( S D I S ) focused on conduct (the ‘how’). For example: making
The SDI AOP allows asset owners and their managers solar panels (SDI) versus having operational policies,
to connect around the shared objective of measuring and management systems, targets, and disclosure in place
understanding their portfolio investments’ contributions (ESG). This enables investors to assess their global
to the SDGs. These goals, set by the United Nations capital markets’ portfolios on their contribution to the
in 2015, aim for a better, more prosperous world, by SDGs and to report to clients and external stakeholders
addressing urgent global issues such as water scarcity, transparently and consistently, using a common and
healthcare access, and protecting the environment. auditable standard. The SDI definition and taxonomy
Investments in companies whose products or services are public and equally applicable to private market
contribute to the realization of the SDGs are called investments. Qontigo is the global financial services
Sustainable Development Investments (SDIs). company that is the distributor of the SDI AOP standard,
and current subscribers to the SDI AOP represent EUR
9.500 billion assets under management.
2022 BLUE BOOK 3BAILLIE GIFFORD
A N D R E W TE LFE R | C EO
A LI G N I N G C A P ITA L W IT H A F O C U S O N T H E F UT U R E , N OT T H E E X IT
At Baillie Gifford, we seek to be engaged, long-term owners wealth creation. We will own a company for as long as
of businesses. Our average holding period is over seven our investment case remains intact, regardless of how
years and our preferred holding period is eternity. Focusing that company chooses to capitalize itself.
on the ‘hold’ rather than on how to buy or sell businesses is
how we have created value for clients over time. T H E C A S E F O R A DA P T I N G F U N D S T R U C T U R E S
Our portfolio companies choose to work with us because O F P R I VAT E M A R K E T PA R T I C I PA N T S
we are focused on their long-term outcomes. In private Over the past year our clients have offered a near universal
markets in particular, the business owners we work with appreciation of the need to adapt fund structures around
are at a point in their lifecycle where a stable partner is the changing needs of private market participants. We have
critical to executing on long-term objectives. When we can seen a groundswell of support around the principle of better
fit long-term capital to the long-term objectives of business alignment and the need for continuity of ownership. Some
owners there is a natural alignment. clients have discussed the need to change the way they
consider employee compensation to remove any misaligned
In private markets that alignment does not yet exist as it
incentives. Others are questioning the need for narrowly
should. Historical investor holding periods of three to four
defined buckets within their asset allocation which may
years, driven by antiquated vehicle structures, has created
be creating unnecessary transaction costs, opportunity
a transactional mindset. These structures do not meet the
costs and reinvestment risks. Regardless of whether our
needs of business owners, nor do they maximize return
clients make these changes now or in a decade’s time, it is
potential for asset owners. In 2021 we set out to establish
rewarding to know this dialogue is underway and that there
a private equity vehicle that would re-establish alignment
is consensus on how to better align our industry over time.
between business owners, asset owners and ourselves.
Being long term in private markets allows us to solve this
dislocation between management teams and investors.
O F F E R I N G A P E R M A N E N T C A P I TA L M I N D S E T
Being long term allows us to provide well-aligned capital
T H R O U G H A 1 5 -Y E A R V E H I C L E
with a focus on the future, not the exit. Being long
Our goal was to bring a permanent capital mindset to a
term allows us to provide continuity of capital to these
limited-life vehicle. On behalf of our clients, we want to
businesses and, crucially, continuity of ownership for
be able to own businesses for as long as the investment
our clients.
thesis holds and the upside potential remains intact. We
have always been able to execute on our philosophy by
operating within permanent capital structures, but not
everyone can invest in these vehicles.
There are two issues with the private market vehicle
structure we were looking to solve:
• he 10-year fund is not a long-term vehicle. If the
T
limited life vehicle is going to remain relevant, there
needs to be an acknowledgment that longer-term
commitments are necessary. Ours is a 15-year fund.
Incidentally, many clients have remarked that their
10-year funds end up as 15-year funds anyway due
to extensions.
• he IPO is an artificial divide between private and
T
public markets. The IPO is a corporate finance decision
that is virtually unrelated to the investment case behind
owning a business. That it has become a liquidity event
within private equity fund structures is destructive to
4 2022 BLUE BOOKBARCLAYS
C S V E N K ATA KR I S H N A N | G ROU P C H I E F E X ECUTI V E
B U I LD I N G A S U S TA I N A B LE LO C A LLY- S O U R C E D C A M P U S W H I LE R E G E N E R AT I N G G L A S G OW
The UK is a world leader in financial services and Glasgow realize a shared vision of redeveloping an area that has
plays an important part in this success. The Barclays been derelict for decades. Our regeneration of the area
Glasgow campus will be home to approximately 5,000 has breathed new economic life into the city, expanding
Barclays colleagues by 2023, and has transformed the the city center across the River Clyde to the south while,
local area through regeneration. crucially, building a site that will retain and attract the
best talent.
Barclays set out to build something transformative,
bringing the community together, helping entrepreneurs The project has had at its core a sourcing objective
flourish, and supporting local enterprise. During the that has prioritized local businesses and entrepreneurs
construction of the campus, over 70 Scottish firms — whether that is sourcing locally printed fabric for
worked on site, with two thirds from Glasgow. As part furnishings, using locally timbered wood in construction,
of the project we transformed a brownfield site into a city or bringing on-site community-based micro enterprises
center park with spaces for community events and two to showcase and sell their products. Many of the small
historic buildings have been restored for public use. businesses that have been engaged in this project have
been able to hire new staff, scale-up, and re-open after
At the heart of our vision was a world class and sustainable
lockdown due to their partnership with Barclays.
campus that contributes to Barclays ambition to become
a net zero bank by 2050. To that end, we are installing We also tasked our lead contractors to deliver the project
a Sustainability Centre on Campus, that will provide via local and diverse subcontractors. This supported
self-generated solar energy and rely on carbon-free Barclays’ drive for local solutions, social mobility, and
technology to heat and cool the buildings. The site also diversity & inclusion.
offers community hub spaces which allow us to work
with local social enterprise, local start-ups and great local E M P LOY M E N T A N D E AG L E L A B S : B R I N G I N G
micro businesses. The building and workspace have been T E A M S TO G E T H E R TO D R I V E I N N OVAT I O N
designed with collaboration in mind and it will support This project is the latest step in our global location strategy
us in our ambition to deliver the latest innovations to our which is focused on bringing teams closer together to
customers and clients. drive innovation and collaboration whilst striking the
right balance between working collaboratively and the
D E S I G N E D TO B E D I F F E R E N T: Z E R O WA S T E , need for flexibility. The campus is home to a number of
B I O D I V E R S I T Y, A N D N E U R O D I V E R S I T Y teams working across our business, including high value
The campus builds on Barclays’ net zero ambitions technology, risk, and compliance roles, and will soon host
and zero waste strategy and with a desire to prioritize a Barclays Eagle Lab. As one of the UK’s largest incubator
sustainability in a city center site. The Campus will be networks, these labs help to nurture skills and create
the first to achieve zero waste by 2025. It will offer thriving entrepreneurial eco-systems.
reusables and onsite compost that will be repurposed
Working with universities in Glasgow and Edinburgh,
for our landscaping needs. We will also produce our own
Barclays has been developing a robust pipeline of
honey and support city biodiversity with 60,000 honey
graduate and apprenticeship opportunities. We have
bees on site.
increased headcount in Glasgow by over 90% over the
The building was also designed with neurodiversity last four years, including 750 people during the COVID
in mind. Being careful about the choice of finishes, pandemic, and by 2023 Glasgow will account for around
the acoustics and the light quality were all important 10% of our UK workforce.
considerations to drive inclusivity at the campus.
Barclays is proud to have delivered this project which will
help to shape the evolution of Glasgow’s city center over
RE VIVE , INSPIRE AND REGENER ATE THROUGH the long-term, through lasting benefits for both society
LOCAL SOURCING AND DIVERSIT Y & INCLUSION and the wider local economy.
Throughout the project we have collaborated well with
the main economic agencies and local government to
2022 BLUE BOOK 5BLACKROCK
TA K I N G A LO N G -T E R M V I E W
For more than a decade, Larry Fink, CEO and Chairman and strengthen our commitment to sustainability in
of BlackRock, has written an annual letter to the CEOs our investment and stewardship activities. BlackRock
of companies BlackRock invests in for our clients. He and other institutional investors have called for greater
began writing about themes he believes are important reporting from companies under frameworks like the
to generating durable returns because many investors Task Force on Climate-Related Financial Disclosures
are increasingly distracted by what are often immaterial (TCFD) and Sustainability Accounting Standards
market moves. He felt there needed to be a louder voice Board (SASB) so we can better understand long-term
for the investors focused on the long term. sustainability-related risks.
He has written about capital management, corporate It also led BlackRock to create new investment funds
strategy, purpose, sustainability, and stakeholder and other initiatives like Decarbonization Partners, which
capitalism. These and other topics have changed over invests in the next generation of technologies that will
time, but the central thread through all of them is that bring us closer to a net zero economy. And it inspired our
companies need to be managed with a long-term view. philanthropic donation to Breakthrough Energy’s Catalyst
Program, which invests in accelerating the development
Over the years these letters have become an influential
and scaling of clean energy solutions that will mitigate
factor for CEOs considering how to create value, not
the impact of climate change.
just for their shareholders, but other key stakeholders
including employees, clients, customers, and the Taking a long-term view is at the foundation of
communities in which they operate. They are also a BlackRock’s strategy. Whether it’s through engaging
driving force for BlackRock’s employees, who play a with CEOs and their management teams as stewards
central role in defining how we operate as a business, of our clients’ investments; the investment products
how we serve our clients, and how we innovate ahead and risk management tools we create; or empowering
of clients’ needs. our employees; it defines how we deliver for all
our stakeholders.
C R E AT I N G I M PAC T
The impact of these letters can be felt across the
business community. When Larry Fink’s letter on the
importance of corporate purpose was published in 2018,
some of America’s largest employers responded. The
Business Roundtable, a leading group of American CEOs,
redefined the purpose of a corporation to promote “an
economy that serves all Americans”. The new statement
reflected a shift away from shareholder primacy and a
move towards stakeholder capitalism, and the need for
corporations to serve all key stakeholders to deliver
long-term value.
DRIVING CHANGE
Sustainability is another area where taking a long-term
view is crucial for corporate success. In 2020, BlackRock
coined the phrase “climate risk is investment risk”
and called for a greater focus on the effects of climate
change on asset valuations. A long-term view led us to
put a greater emphasis on climate-related disclosures
6 2022 BLUE BOOKBLACKSTONE
D E C A R B O N I Z AT I O N P L AT F O R M A N D C O M M IT M E N T TO I N V E S T I N G AT S C A LE I N TO T H E E N E R GY
T R A N S IT I O N TO C R E AT E VA LU E F R O M R E D U C E D E M I S S I O N S
At Blackstone we invest for the long-term on behalf of our E X P E C T E D I M PAC T ? G R O W T H F R O M C L E A N
investors, including over 100 million pensioners, and the E N E R GY, D E C R E A S E C O2 , A N D C L E A N
communities in which we operate. Our patience allows E N E R GY J O B S
us to develop strong, resilient companies and assets that The project is expected to have tremendous positive
can deliver both long-term value for our investors, and benefits — it will deliver 1,250 MW of clean energy to
long-term resilience for a more sustainable future. New York City by 2025, enough to power over 1M homes
and decrease CO2 emissions by an estimated average
U S I N G D E C A R B O N I Z AT I O N L E S S O N S L E A R N E D of 3.9M metric tons per year, which is equivalent to
TO B U I L D A N I N D U S T RY- L E A D I N G P L AT F O R M removing 44% of cars from the city. The project is also
For example, over the last decade, we have partnered expected to create approximately 1,400 jobs during
closely with our portfolio companies to help them reduce construction, with a commitment to using union labor, and
carbon emissions. In the process, we have learned a lot includes a $40 million new Green Economy Fund that will
about what works — and what doesn’t — when it comes provide job training for clean energy jobs.
to reducing carbon emissions across a wide variety Our decarbonization platform and our commitment to
of assets in vastly different sectors of the economy. investing at scale into the energy transition is a testament
We have built what we believe is an industry-leading to what investors with a long-time horizon can achieve.
decarbonization platform and are committed to a target
of reducing carbon emissions by 15% in aggregate within
the first three years of ownership, starting in 2021, for
every company in which we control energy usage — a
commitment informed by climate science. Our long-term
investment horizon gives us time to partner with our
portfolio companies to help them achieve a stronger,
lower-carbon future.
R E N E WA B LE E N E RGY TR A N S M I S S I O N P R OJ E C T
TO LI N K M O NTR E A L A N D N E W YO R K C IT Y
We also invest at scale in certain industries that can drive
transformational change in the global economy, such
as the energy transition. Our committed and intentional
approach to investing in the energy transition allows us
to stay with projects longer than many other investors
would have the patience for. One example of our strategy
in action is the proposal we helped craft with TDI, a
portfolio company, to build the Champlain Hudson Power
Express, a 339-mile renewable energy transmission
project linking Montreal and New York City. After over
a decade of commitment, including close collaboration
with communities, labor organizations, environmental
stewards, and municipalities, New York State selected
TDI’s proposal in October 2021.
2022 BLUE BOOK 7BROOKFIELD
CO N N O R TES KE Y | H E A D O F R E N E WA B LE POW E R & TR A N S ITI O N
B R E ATH I N G N E W LI F E I N TO W I N D FA R M S
Net zero by 2050 hinges on a significant leap toward clean Since most of the existing infrastructure will remain in
energy in this decade. That’s because 73% of the world’s place (the land, the permits, the foundations and the
emissions come from the energy sector. According to connections to the grid), the timeline for repowering is
the International Energy Agency, by 2050, almost 90% of moving quickly — we expect to complete the project
electricity generation will need to come from clean sources in under 24 months. In addition, we are minimizing
— with wind and solar together accounting for nearly 70%. project risks by leveraging our existing relationships
This means that wind capacity needs to increase by 11x, with equipment suppliers, financing partners, permitting
while solar needs to rise by 20x. Successfully reaching authorities, and power off-takers.
these multi-decade goals will require a long-term view
Once completed, the repowering at Shepherd’s Flat
on the development and operation of power generation
will have the impact of increasing power production by
assets, and by extension, a long-term perspective on
approximately 25% annually and extending the life of the
building value for investors.
facility by 30 years. While many investors would have
As one of the world’s largest renewable power businesses, chosen solely to maximize the asset’s current cash profits,
we see enormous potential in wind repowering as an we looked beyond that and invested for long-term value
essential step in greening global power grids. Repowering as well. Moreover, in addition to the current asset, we will
is essentially upgrading and refurbishing existing wind have the option to build another 400 MW of capacity next
farms to create power at a greater scale, more efficiently to the facility — thereby contributing to the 11x increase
and for a longer period of time. The idea behind it is needed in the IEA’s pathway to net zero by 2050.
simple: by installing new, larger blades and rotors and/or
new software at an existing site, we can enhance energy A W I D E - R E AC H I N G O P P O R T U N I T Y
capture at a fraction of the cost of building a new facility — The implications of wind repowering go beyond this
between 30% and 50% — and extend the useful life of the one asset: In the next five years, we estimate that 200
wind farm by several decades. gigawatts of global wind turbine capacity will age into
being candidates for repowering around the world. That is
REPOWERING ONE OF THE L ARGEST WIND the equivalent of about 240 Shepherd’s Flat assets over
FA R M S I N T H E U S the next five years. The greening of global power grids is
In February 2021, we announced our US$700 million the single largest decarbonization opportunity around the
purchase of Shepherd’s Flat, an 845-megawatt wind farm world today. Fortunately, most of today’s carbon emissions
in Oregon that is one of the largest in the US — and an are abatable by using existing technologies — like wind
attractive candidate for repowering. We were the successful repowering — that are commercially viable at scale.
bidders on the asset partially due to our differentiated view
on value — we understood the value of the in-place assets
and contracts, but we were also willing to forgo some short-
term cash flows for a couple of years while the asset was
being repowered. We also had the operational experience
to execute on the investment, thereby increasing production
levels and extending the life.
We began the repowering project in June 2021, replacing
the hardware of over 320 turbines with longer rotors and
more efficient equipment. The new blades we are installing
at Shepherd’s Flat are 27 meters longer (a 27% increase),
as well as lighter and stronger. These extra-long blades
are able to pick up low levels of wind that would have
slipped by the older, shorter blades.
8 2022 BLUE BOOKBUNGE
G R EG H EC KM A N | C H I E F E X ECUTI V E O FFI C E R
I NTE G R ATI N G S U S TA I N A B I LIT Y I NTO E V E RY B U S I N E S S F U N C TI O N — F R O M S U PPLY C H A I N S TO E M PLOY E E
CO M P — PR O PE L S E S G LE A D E R S H I P S CO R E S
At Bunge, we connect farmers to consumers to sustainably global operations, promote regenerative farming practices,
deliver essential food, feed and fuel to the world. Our key and emphasize decarbonization in shipping and logistics.
areas of growth — expansion of our oilseed processing and
• A substantial portion of emissions reduction within our
origination capabilities, production of renewable feedstocks,
supply chains (Scope 3) is tied to our industry-leading
increasing our plant lipids portfolio and development of new
commitment to have deforestation-free supply chains in
plant-based protein ingredients — are not only central to our
2025. The decision to pair our SBTs to our non-deforestation
business strategy but also a testament to the alignment of
policy was praised by stakeholders, including Ceres, PRI, and
sustainability with our corporate vision.
Climate Action 100+ investors.
In the past two years, company-wide improvements enabled
• In December 2021, we closed on the refinancing of our $1.75
Bunge to take advantage of improved market conditions and
billion, three-year revolving credit facility. The interest rate
generate record earnings, positioning ourselves for long-term
is linked to our credit ratings and to five core sustainability
success. We provide value for our shareholders while continuing
targets, creating a meaningful connection between Bunge’s
to accelerate our focus on sustainable business opportunities
capital structure and sustainability strategy.
that contribute to more climate-friendly agribusiness and
food systems. • As of January 1, 2021, performance-based sustainability
goals are a component of the annual incentive bonuses
paid to our executive team and over 5,500 of our
O N E B U N G E G LO BA L O PE R ATI N G M O D E L H E LP S
employees. Our compensation framework is based on a
I N CO R P O R ATE SUSTA I N A B I LIT Y AC ROSS
pay-for-performance philosophy with payout now directly
STR ATEG I C B US I N E SS D EC I S I O N S
impacted by our attainment of certain sustainability targets.
After Bunge’s 2019 One Bunge announcement of a new, global
operating model that eliminated multiple regional structures,
the company also implemented more disciplined financial
E SG D I SC LOSU R E E A R N S B E ST- I N - C L A SS SCO R E S
practices around risk management, the balance sheet and
FRO M I N STITUTI O N A L I N V E STM E NT CO M M U N IT Y
capital allocation. At the same time, Bunge began more directly
Bunge is a leader among our peers across leading
incorporating sustainability into the strategic business decision-
environmental, social and governance (ESG) disclosure
making process.
platforms and our efforts to integrate sustainability into our
• Bunge divested more than $1 billion in non-strategic assets business and supply chains have contributed to strong ESG
and businesses and is investing in sustainable businesses disclosure scores year over year.
such as plant-based fats, oils and proteins. A joint venture
• We continue to receive AAA ratings from MSCI, positioning
with Chevron will produce feedstock to supply the rapidly
us ahead of industry peers.
growing renewable fuel industry, helping lower the lifecycle
carbon intensity of fuels. • In 2021, Bunge received “B” ratings — leading scores in
our peer group — for CDP Forests, Water and Climate, an
• Bunge made significant technology investments to improve
important platform used by our global customers to assess
traceability and monitoring of supply chains, help connect
supplier sustainability.
upstream supplies and enhance efficiency of transportation.
• For 2021 and 2022 Bunge was named “Most Responsible
Companies” by Newsweek Magazine.
M E E TI N G SUSTA I N A B I LIT Y TA RG E TS V I A N O N -
• Over 3,000 investors surveyed by Institutional Investor
D E FO R E STATI O N SU PPLY C H A I N S , R EG E N E R ATI V E
placed Bunge at #3 in the Food Producer category for ESG
FA R M I N G , A N D I N C E NTI V E BO N US E S
performance and transparency.
We fight climate change with carbon-focused decision
making across our organization. We are constantly working
Actions taken over the past few years have resulted in a
to minimize our environmental footprint and take action to
noteworthy business and financial turnaround for Bunge. And
reduce greenhouse gas emissions through our commitment
we did so as we raised our climate ambition by progressing
to climate action.
toward our existing sustainability commitments, setting more
• We announced Science-Based Targets (SBTs) to achieve aggressive ones as needed, and investing in our potential
absolute reduction in carbon emissions for our own across new growth areas. Taken together, we believe we are on
operations and in our supply chains. To meet these targets, the right path to deliver meaningful and impactful climate action
Bunge will make significant enhancements across our while delivering strong results for shareholders.
2022 BLUE BOOK 9CAISSE DE DÉPÔT ET
PLACEMENT DU QUÉBEC
C H A R LES E M O N D | PR ES I D E NT A N D C H I E F E X ECUTI V E O FFI C E R
P R OV I D I N G “ C O N S T R U C T I V E C A P ITA L” F O R I N N OVAT I O N S T H AT D E LI V E R P E R F O R M A N C E
AND PROGRESS
Long-term investing is at the core of our identity at Caisse the pandemic. Elsewhere in our portfolio, Lightspeed,
de dépôt et placement du Québec (CDPQ). We see it as a Canadian e-commerce software firm, was surging.
a journey, not a destination, and this perspective informs We saw the connection and gave Ivanhoé Cambridge’s
our decision-making processes. tenants free access to its software for a year, helping
them to make major strides on the digital commerce front
As a global investment group, we have responsibilities
while boosting Lightspeed’s growth with new clients.
to multiple stakeholders wherever we do business. This
means we look beyond immediate financial outcomes to
leverage a broader viewpoint focused on sustainability H O L D I N G O U R S E LV E S A N D T H E C O M PA N I E S
when we make decisions. W E I N V E S T I N TO T H E H I G H E S T S TA N DA R D S
Our “constructive capital” approach is inherently a
We are a provider of “constructive capital,” which means
long-term one. CDPQ cannot fulfill its dual mandate
that our capital allocations drive performance and
— delivering optimal returns and contributing to the
progress. This approach leads us to innovations that will
development of Québec’s economy — by observing the
build stronger companies and benefit the communities
markets and merely capitalizing on current opportunities.
where we invest.
We create our own through our unique perspective while
holding ourselves — and the companies we invest in —
H E L P I N G C O M PA N I E S D E C A R B O N I Z E T H E to the highest standards. This mindset permeates every
H I G H E S T- E M I T T I N G S E C TO R S A N D AC H I E V E aspect of our investing, including asset allocation, portfolio
S C I E N C E - B A S E D TA R G E T S construction, stewardship investing and risk management.
That’s why we are also acutely aware of our role in Doing it well makes our capital truly “constructive.”
bringing positive and constructive change in light of the
climate crisis. One example of the steps we are taking is
our CAD 10-billion envelope focused on accelerating the
climate transition. Our goal is not just to decarbonize our
own portfolio, but also to foster the transition of the real
economy. So with this envelope, we are engaging in the
tough work of decarbonizing the highest-emitting sectors,
like steel, lithium, plastics and copper. We help companies
achieve the science-based targets that we set, and we
will measure and report on our own progress annually.
In the long term, we expect these companies to be better
positioned to thrive and to outperform as a result.
D E P LOY I N G C A P I TA L TO Q U E B E C C O M PA N I E S
I M PAC T E D BY PA N D E M I C
For us, the turbulence of the pandemic has been another
opportunity to use our capital constructively. In the first
weeks of the crisis, CDPQ deployed a CAD 4-billion
envelope to support Québec companies temporarily
affected by it while having good prospects for long-term
profitability. We also engaged operationally with concrete
measures to help the retail tenants of our real-estate
subsidiary, Ivanhoé Cambridge, which were hard hit by
10 2022 BLUE BOOKCARLYLE
KE WSO N G LE E | C H I E F E X ECUTI V E O FFI C E R
P R I VAT E C O M PA N Y E S G DATA C O N V E R G E N C E P R OJ E C T
In a rapidly changing world, Carlyle believes that impact 1 0 0 L P S A N D G P S S I G N O N TO R E P O R T O N S I X
is a lens for finding efficiencies and capitalizing on new K P I S F O R 1 3 0 0 P R I VAT E C O M PA N I E S
growth, as we see the market valuing a wider set of This project maintains the long-term objective to create
business models and competencies. By helping our a critical mass of meaningful, performance based ESG
portfolio companies improve across these dimensions — data from private companies, prioritizing near-term action.
from creating sustainability-driven growth strategies to Impact thus far includes:
building more diverse teams — we believe we will build
• Over the first 8 months of 2021, seven asset managers
more valuable businesses and deliver better results for
and eight investors came together to agree upon
all stakeholders.
sox metrics that GPs would collect in the initial year:
ESG data is a critical to understand and advance ESG Scopes 1 and 2 greenhouse gas emissions, renewable
improvements in companies over time. Its current state, energy usage, board diversity, work-related injuries,
however, is incredibly challenged. Investors can’t see net new hires, and employee engagement.
standardized, comparable ESG data across their portfolios,
• To date, more than 100 LPs and GPs have joined the
asset managers are struggling under a mounting volume
effort, meaning the six KPIs will be provided for more
of bespoke ESG data requests, companies are sorting
than ~1300 private companies. Whenever an LP asks
through an increasingly complex set of ESG frameworks
for these data points, participating GPs will provide
and standards, and broad-based data about ESG
those 6 KPIs using the same definition and same
performance for private equity-owned companies doesn’t
format — enabling transparent/comparable data
exist in the market.
across portfolios.
In order to address these challenges, we needed to take a
• In order to accelerate the field at large, each asset
long-term view on strategy and aspiration, but a near-term
manager has agreed to anonymize portfolio company
view on tactical implementation. To this end, in 2021, we
ESG data, and aggregate centrally into benchmarks
co-led the creation of the ESG Data Convergence Project
to drive industry insights — Boston Consulting Group
alongside CalPERS and a number of our other LP and GP
published a research paper based on historical data
partners, forming the first-ever GP-LP cohort to create a
submitted by participating asset managers. Since the
critical mass of material, performance-based, comparable
launch of the project in September 2021, over 100 GPs
ESG data from portfolio companies.
and LPs have signed on, representing over $8 trillion
in AUM.
G P S A N D P O R T F O L I O C O M PA N I E S B E N C H M A R K
E S G P O S I T I O N S A N D T R AC K P R O G R E S S / L P S
G E T T R A N S PA R E N C Y
The objective of the group is to streamline the private
market’s historically fragmented approach to collecting
and reporting ESG data in order to create a critical
mass of meaningful, performance-based, comparable
ESG data from private companies. This allows GPs and
portfolio companies to benchmark their current position
and generate progress toward ESG improvements, while
enabling greater transparency and more comparable
portfolio information for LPs. Importantly, this enables us
to more effectively help portfolio companies improve their
performance on material ESG issues.
2022 BLUE BOOK 11CPP INVESTMENTS
JO H N G R A H A M | PR ES I D E NT A N D C H I E F E X ECUTI V E O FFI C E R
In 2013, when CPP Investments and McKinsey & Company consistent investment decisions and mitigate risk. The
launched the Focusing Capital on the Long Term initiative Investment Beliefs provide clarity and consistency to CPP
to advance practical actions to focus business and markets Investments’ decision-making, a guide to evaluate and
on the long term, we had no way of knowing that it would select appropriate investment strategies globally, and a
take on a life of its own and that in 2021, we would be compass to stay the course.
celebrating the fifth anniversary of FCLTGlobal.
E X A M P L E : I N C O R P O R AT I N G N O N - M A R K E T
I N V E S T M E N T O R G A N I Z AT I O N S W O R K FAC TO R S I N TO D E C I S I O N - M A K I N G C R E AT E S
TO G E T H E R TO D E V E LO P LO N G -T E R M M O R E S U S TA I N A B L E VA LU E
PORTFOLIO GUIDE For example, one of our Investment Beliefs is that
As part of the Focusing Capital on the Long Term ‘incorporating non-market and emergent factors into
initiative, CPP Investments led a working group of decision-making creates more sustainable value’. This
over 20 investment professionals from institutional belief that corporations and organizations that better
investment organizations around the world to develop identify and appropriately manage environmental, social
the Long-Term Portfolio Guide to “reorient portfolio and governance factors and other long-term strategic
strategies and investment management to focus capital issues are more likely to endure, and create greater value
on the long term.” over the long term, than those that do not, is integral to
how we invest and is reflected in investment processes,
This early working group was an embodiment of the
including our proxy voting principles and guidelines.
work that FCLTGlobal does today in bringing together
different members of the investment value chain to Today, we remain an active member of FCLTGlobal and
discuss and solve common strategic challenges. The are engaged on issues that will shape our industry and
Long-Term Portfolio Guide did not take a “one size fits all” capital markets for years to come. These include research
approach. It encouraged institutional investors, within projects on climate change, risk management, and equity,
the context of their own unique situations, to evaluate, diversity, and inclusion in PE-controlled company boards.
adapt, and adopt an organizationally appropriate mix of
these ideas to enhance the long-term value they create
for their beneficiaries.
C P P I N V E S T M E N T S D E V E LO P S
INVESTMENT BELIEFS VIA A FUND -WIDE
C O N S U LTAT I O N P R O C E S S
A key recommendation of the Long-Term Portfolio
Guide was for institutional investors to clearly articulate
investment beliefs, with a focus on their portfolio
consequences, to provide a foundation for a sustained
long-term investment strategy.
As a result, CPP Investments developed our first set
of Investment Beliefs in 2019. We underwent a Fund-
wide consultation process, where all employees across
the organization were asked to participate in working
sessions to help draft our Investment Beliefs. Our
Investment Beliefs are core to our strategy and serve
as a guide for our day-to-day investment decisions.
These beliefs serve as a foundation for our long-term
investment goals while ensuring that we make
12 2022 BLUE BOOKDOW INC
J I M FIT TE R LI N G | C H A I R M A N A N D C H I E F E X ECUTI V E O FFI C E R
At Dow, our ambition is to become the most innovative, D E V E LO P I N G T H E W O R L D ’ S F I R S T N E T-Z E R O
customer-centric, inclusive, and sustainable materials C A R B O N E M I S S I O N S E T H Y L E N E C R AC K E R
science company in the world. To achieve this vision A N D D E R I VAT I V E S C O M P L E X T H AT W I L L
requires a combination of near-term adaptability and DECARBONIZE 20% OF DOW ’S WORLDWIDE
long-term strategic decision making, to ensure the E T H Y L E N E C A PAC I T Y
Company remains relevant and competitive while creating Notably, we are developing the world’s first net-zero
meaningful value for all stakeholders both today and into carbon emissions ethylene cracker and derivatives
the future. Since its separation from DowDuPont in 2019, complex in Fort Saskatchewan, Alberta, which will
Dow has made significant progress advancing its ambition, decarbonize ~20% of our global ethylene capacity while
supported by a long-term mindset that is reflected in more than tripling the ethylene and downstream derivative
everything we do. This approach has ensured Dow’s capacity at the site and delivering ~$1 billion in EBITDA
business remains resilient across the economic cycle, growth by 2030. This is a key investment that allows us to
delivering top-quartile cash flow, cost performance, net meet the increasing needs of our customers and brand
debt reduction and shareholder renumeration, all while owners seeking to lower the carbon footprint of their
advancing our leadership position in ESG. products. For example, plastics remain an indispensable
part of a low-carbon future — they make cars lighter and
CONSUMERS DRIVE DEMAND FOR more fuel efficient, homes more energy-efficient and
S U S TA I N A B L E P R O D U C T S reduce food waste — a major contributor to the world’s
The foundation of our leadership is a purpose-built carbon emissions. Our disciplined approach positions us
portfolio, which is positioned to solve many of the world’s well to lead the industry in decarbonizing, growing, and
toughest challenges. Importantly, there are several accelerating our path toward carbon neutrality.
growth drivers in the industry that will increase demand
for our products, including connectivity, efficiency, and E S G M E T R I C S A D D E D TO E M P LOY E E
sustainability. Specifically, sustainability is a significant P E R F O R M A N C E AWA R D S P R O G R A M S
growth opportunity for Dow as customers around the world We expect to deliver all this while continuing to enhance
are demanding more circular and sustainable products. And our industry-leading ESG profile in support of our ambition.
with Dow’s global scale, leadership in materials science We are accelerating our actions to protect the planet,
and chemistry, and alignment to attractive market verticals, placing an intentional focus on inclusion, diversity and
our portfolio is differentiated and well-equipped to capture equity, and driving best-in-class governance practices. We
growth across these trends over the long-term. do this while ensuring the health, safety and wellbeing of
our people; the reliability of our operations; and serving
PL A N TO AC H I E V E A N ET-ZE RO C A R BO N as a force for positive social change in the communities
E M ISS ION S FUTU R E WH I LE G ROWI N G E A R N I N GS where we live and work. Consistent with our commitment
To that end, in October 2021, we announced a disciplined to transparency and accountability, we’ve set clear goals
plan to continue delivering value growth while achieving against which to measure our progress, including the
a net-zero carbon emissions future. Through these efforts, addition of ESG metrics to our employee and officer
we expect to increase underlying EBITDA by more than Performance Award programs, as well as the publication of
$3 billion through the execution of higher-return, lower- INtersections — our holistic and comprehensive ESG report.
risk, faster-payback projects as well as our efficiency By working at the intersections of science and sustainability,
programs, including plans to digitalize the company and culture and accountability, Dow is partnering with others to
become more customer-centric. At the same time, we are encourage new thinking, advance ESG issues that matter
implementing a phased, site-by-site approach to replace most to our stakeholders, and unlock new avenues of
end-of-life assets with lower-emissions, lower-capex, growth that will power our success for the future.
higher-ROIC and higher-capacity operations, with a clear
path to a 30% reduction in Scope 1 and 2 emissions by
2030, and zero-carbon emissions by 2050.
2022 BLUE BOOK 13DSM
G E R A LD I N E M ATC H E T T
CO - C EO, C FO, A N D M E M B E R O F TH E M A N AG I N G BOA R D
TR A N S FO R M I N G FO O D SYS TE M S FO R H E A LTH I E R PE O PLE , PL A N E T & LI V E LI H O O D S
Done right, the way that we grow, produce, and eat food beyond the limits of what our planet can provide in terms of
benefits not only our own health, but that of society and the land and resources. DSM is working to transform how we can
planet too. Yet how to feed everyone with nutritious and sustainably produce and consume food as a society.
healthy food while protecting those who produce it and
•
Our commitment: To enable double-digit on-farm
without further straining the environment? At DSM, a global
livestock emissions reduction by 2030. Proteins are
leader in science-based nutrition, we’ve been striving to
highly nutritious and fundamental to a healthy, balanced
address these challenges for many years. In 2021, we stepped
diet. However, animal farming impacts our climate and the
up our efforts by making explicit our ambition to transform the
natural world. At DSM, we are working closely with best-
sustainability of global food systems as we continue delivering
in-class industry partners to develop future-proof thinking,
on our purpose of creating brighter lives for all.
scientific breakthroughs, and cutting-edge technologies
to help farmers develop cost-effective emissions-
OU R V I S I O N : A WO R LD W H E R E E V E RYO N E H A S reduction practices.
ACC E SS TO N UTR ITI O N A N D PRO DUC TI O N O F
• ur commitment: Reaching 150 million people with
O
FOO D LE AV E S N O FOOTPR I NT
plant-based foods by 2030. At the same time, we are
We envisage a world where everyone has access to good
working to support alternatives, such as through enzymes
nutrition. Where agriculture and the production of food leaves
that can deliver a better taste, texture, and mouthfeel in
no environmental footprint. Where food loss and waste does
plant-based foods. We are directly investing in plant-based
not exist anymore. And where farmers and their communities
protein derived from canola (rapeseed) as well as from
don’t just survive but thrive. Building on our scientific strengths
peas and beans as viable meat and dairy alternatives.
and innovation power, we have made firm, measurable
commitments that will see us improve the health of the planet,
of people, and of livelihoods by 2030.
H E A LTH Y LI V E LI H OO DS: SU PP O RTI N G
A N D R E WA R D I N G FA R M E RS FO R
HE ALTH FOR PEOPLE: CLOSING THE SUSTA I N A B I LIT Y PR AC TI C E S
MICRONUTRIE NT GAP AND SUPPORTING IMMUNIT Y We need to ensure that the farmers who produce our food can
At DSM, we’re working to provide good, affordable nutrition do so sustainably, while benefitting from new farming practices.
that supports better health and wellbeing.
• Our commitment: Supporting the livelihoods of 500,000
•
Our commitment: Help close the micronutrient gap of smallholder farmers by 2030. Rewarding farmers for
800 million people by 2030. More than two billion people applying the most sustainable methods, training them
worldwide lack essential micronutrients such as vitamins to help make it happen and supporting them to secure a
and minerals in their diets. We are working hand-in- steady income will be transformational. We will be scaling
hand with local and international partners to introduce up Africa Improved Foods, our Joint Venture in Rwanda
innovative solutions for widescale staple food fortification with local authorities and development agencies which
and public health supplements for vulnerable people. aims to provide healthy food for the local population and
Our initiatives are already helping several hundred million a better, steadier income for smallholder farmers through
people each year, but we want to go further. local sourcing.
• ur commitment: Supporting the immunity of half a billion
O
Long-term sustainability is at the heart of our purpose-led
people by 2030. The global pandemic has highlighted
ethos — we were among the first companies to have an
the need for good nutrition — such as vitamins C and D,
emissions reduction plan to be independently validated by the
Omega-3 fatty acids and probiotics — to protect everyone’s
global Science Based Targets initiative to align with the Paris
health and immunity. We will work closer with governments
Climate Agreement. Our progress on these new ambitions
and other partners to drive awareness of this important link
will be externally audited each year in our Integrated Annual
and ensure sufficient vitamin intake for more people.
Report, with DSM one of the few companies in the world to
seek reasonable assurance on all our impact reporting. The
reason is simple: We cannot be successful in a world that fails.
H E A LTH FO R PL A N E T: R E DUC I N G
LI V E STOC K E M I SS I O N S A N D I N V E STI N G
I N PL A NT- BA S E D PROTE I N
Food accounts for more than a quarter of all global
greenhouse gas emissions and the world is moving further
14 2022 BLUE BOOKEDELMAN
E S G G LO B A L R E P O R T I N G C E N T E R O F E XC E LLE N C E W I LL H E LP B U I LD S TA K E H O LD E R S ’ T R U S T
The trends in ESG reporting have transformed the that prioritizes 1) technical subject matter expertise
corporate landscape in just a couple of years, moving from relevant at a global level, available to all clients as needed
nice-to-have to must-have across the globe, and acting in real time 2) delivery on reporting needs at a local level,
as a prism through which one can examine how business in line with existing client coverage expectations. We
leaders can establish trust with all their stakeholders. now call this integrated team the Edelman ESG Global
Reporting Center of Excellence. Its key strategic pillars are:
DEFINING THE CHALLENGE: ENHANCING 1. Permanent leadership for the CoE — rather than purely
S U S TA I N A B I L I T Y C O M M U N I C AT I O N S A N D project-based — staffed by established professionals
D E T E C T I N G E VO LV I N G T R E N D S with backgrounds in sustainability reporting,
At Edelman, we have a long-standing sustainability investment management, and ESG consulting
advisory capability, working with clients on how to
2. Mandatory training programs for all CoE staff on
define and position their purpose and ESG goals, and
the fundamental building blocks of reporting (e.g.,
therefore enhance the effectiveness of their sustainability
GRI Academy, SASB FSA credential, CFA Institute
communications. In many instances, however, these client
Certificate in ESG Investing)
assignments have remained in the regional or subject
matter expertise silos where they first landed. This left our 3. Furthering the agenda — through regular thought
global Edelman teams often unaware about what certain leadership pieces and client advisory notices on
clients were asking of us, and therefore unprepared to changes in reporting trends, such as the TCFD
detect how trends were evolving. And given the nature of guidance update in November 2021
reporting assignments — with often very tight deadlines
and sense of exhaustion lingering after the project’s With this new approach, we feel better positioned to
completion — it was also creating many short-term respond to client assignments, as well as provide truly best
business opportunities that accumulated in a random in class execution on their ever-increasing ESG reporting
manner globally, but it did not allow us to have a long-term needs. As of January 2022, our CoE has over 25 projects
vision or strategy for how to do it better. underway globally for delivery before the end of the first
quarter, with reports ranging across multiple industries
This lack of sharing best practices was not just an internal
and geographies.
business problem — it was increasingly anachronistic.
As the ESG trends mentioned above gathered steam, Edelman is convinced ESG is here to stay and that
it became increasingly obvious to us that no effective communication agencies such as ourselves will be at the
communication on sustainability could take place forefront of building narratives that are fact-based and
without genuine technical expertise on the key reporting help build stakeholders’ trust in business. Without taking
frameworks emerging as best in class — whether GRI, the long-term needs of the ESG reporting market into
SASB, or CDP — or, as will soon be the case for TCFD in account — and investing proactively and commensurately
the UK and New Zealand as well as the EU’s upcoming to address them — we realized we would end up in a
CSRD, the veritable law of the land. So if we wanted to be weaker competitive position. We are proud that we took
winners long-term, we had to up our game on the technical the time needed to know how to build a true global ESG
knowledge required as well. Center of Excellence, and are firmly convinced that his
long-term investment will yield returns for our clients and
our business.
R E - E N G I N E E R I N G S U S TA I N A B I L I T Y
R E P O R T I N G W I T H G LO B A L A N D LO C A L
TECHNICAL EXPERTISE
We therefore decided to completely re-engineer our
sustainability reporting business, adopting an approach
2022 BLUE BOOK 15You can also read
