There are serious indications that the factor "Sustainability" is indeed the new disruption in securing investment funds. It also seems that the sooner companies adapt to the new conditions, the more feasible it will be to secure their place in the new landscape or gain ground against their competitors and the new companies that will claim a share (incumbents vs successors).
We have already left behind the time when the main criteria for investment were purely financial and the only thing that counted at the end of the day was the profits of a company. We are now rapidly entering the era of sustainable investments! Sustainable investments obviously do not ignore the return on profits, but they also deal thoroughly with how these profits are created! This implies a fundamental change in the way companies are treated and valued, especially in the long run, ten or even twenty years. Because obviously almost all the investments aim to make a company more innovative, more productive, more functional not only for the next one or two years but consistently in the future.
Sustainable investments do not ignore the return on profits, but also deal with how these profits are created.
So new questions and new issues arise, concerning the concept of sustainability. In addition to "what" is sustainability, we now face issues of IT systems that will manage it, record the requirements and monitor the progress towards it. Because a company or an investment is not deemed "sustainable" at a specific time and then "we are done"! It is necessary, imperative and required by stakeholders to monitor the progress and status of a "viable" investment in the long run.
Companies are required to set strategic objectives of responsibility, with respect for society, employees and the environment
Companies, in turn, are therefore required to adjust their strategy and set strategic objectives of responsibility, with respect for society, employees and the environment. They must do so because they will be seriously evaluated in terms of their impact on all of these. Negative activities are risks with a clear financial cost and identifying them means a more realistic assessment of their true value and therefore a safer investment. Investors believe that incorporating ESG factors into a company's strategy shields it from many business risks (J.P. Morgan Wealth Management) and they are probably right! And all of the above, needs to be captured "somewhere" , not just in an annual report, but in a live, online real-time system.
Incorporating ESG factors into a company's strategy shields it from many business risks.
For this evaluation, of course, there is a strong need for disclosure of non-financial information and its connection with the financial statements.
Non-financial information most often exists internally in a company, but until recently did not concern anyone. But now it needs to be collected, compiled and consequently managed centrally in order to be made public in a way that is useful to stakeholders, in line with a company’s strategy.
RiskClima covers this requirement by offering an Integrated Data Collection and Reporting System. The tool, organizes, accelerates and standardizes the reporting processes according to ESG- Environment, Social, Governance standards. It substantially reduces costs and time in management tasks, and offers a comprehensive and immediate view of the Indicators and the overall ESG assessment of a company.
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