Investor Presentaiton
Climate Sustainability
Harmonised sustainability standards should enable more
consistent and comparable reporting
ESG ratings agencies measure different environmental
elements and criteria change over time, 2008-18
Proportion of the eight ESG rating and information provider agencies that apply
each E criterion into evaluation of corporate sustainability*
Industry-specific criteria
Water use & management
Carbon intensity
Control of impacts on the overall life-cycle
2008
----
2018
100 Climate change
80
Waste management/reduction
60
40
Travel & transport impact
20
Emissions
Renewable energy/raw materials
Raw material sourcing
Protection of biodiversity Pollution
management & resources
Packaging
Materials recycled & reused
Eco-design
Eco-efficiency
Energy consumption/ efficiency
Environmental policy/
management
Environmental reporting
Environmental risk management
Hazardous waste
*based on analysis of eight ESG rating and information provider agencies, including FTSE Russell ESG
Ratings, MSCI ESG Research, REFINITIV and Sustainalytics
International collaboration
towards universal metrics
• PwC collaborated with the World
Economic Forum, the International
Business Council and other services
firms to identify universal metrics for
more consistent and comparable
reporting
• Released in September 2020, these
Stakeholder Capitalism Metrics
include full implementation of Task
Force on Climate-related Financial
Disclosures recommendations;
broadened to nature-based impact,
including biodiversity, with mid-2021
launch of Taskforce on Nature-
related Financial Disclosures
At COP26, the International Financial
Reporting Standards (IFRS)
Foundation announced the formation
of a new International Sustainability
Standards Board (ISSB) to develop a
comprehensive global baseline of
high-quality sustainability disclosure
standards
Overcoming inconsistency
The third-party verification of ESG
data is important to validate
progress. ESG ratings agencies,
meanwhile, benchmark performance
against industry, regional and global
peers. However, agencies assign
different weighting to different ESG
elements. Moreover, criteria change
over time and also vary by industry
and market. While the evolution of
criteria is necessary to keep pace with
broader change, it also impedes
comparable reporting. Efforts have
been ongoing to address the lack
of universal ESG metrics, such as
the September 2020 Stakeholder
Capitalism Metrics by the WEF
and other partners. The IFRS
Foundation's COP26 commitment
to form the ISSB should further
accelerate progress towards this.
PwC
OBG ESG Report
O
OXFORD
BUSINESS
GROUP
Sources: IFRS; MDPI; Sustainability; WEF
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