with investors about social and governance (esg) performance · kpmg member firms can provide...
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GIN © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with
which the independent member firms of the KPMG network are affiliated. 4
Client stories
A major European energy company wanted to improve its performancescores in high profile ESG indices and ratings. Its goal was to becomeone of the highest-rated companies in its sector for ESG performance.To achieve this, its investor relations team needed a better understandingof the criteria that ESG ratings agencies assess and how theymeasure performance.
ESG investor relations specialists at KPMG in Spain analyzed themethodologies of ten major ESG ratings agencies. They also conducted in-depth interviews with several agencies to determine which ESG topicsthey considered critical and why, which emerging topics were gainingsignificance, and how the various rating methodologies differed.
KPMG’s analysis helped the client understand which areas of its ESG activity it should prioritize to achieve better ratings. Recommendationsincluded improvements in Board oversight of ESG and new corporategovernance approaches. With KPMG’s support, the company developed and implemented a strategy to improve its ratings and was also betterprepared to respond to ESG enquiries from investors and ratings agencies.
The investor relations team at a global industrial manufacturing company saw increased investor interest in the company’s ESG performance. As aresult, they needed a better understanding of their investors’ needs forESG information and how they could improve the company’s ESGinvestor communications.
KPMG in Finland evaluated the ESG approaches of multiple institutionalinvestors, with a focus on the UK and US. The KPMG team analyzed theseinvestors’ ESG strategies, commitments to international frameworks,public statements, reports and policies, and also conducted in-depth interviews with them. Based on this research, KPMG identified the ESGtopics of most importance to these key investors and advised the client on how to align its ESG approach with its investors’ expectations.
For example, KPMG professionals found that the client’s transparency on its approach to climate change fell short of some investors’ expectations.KPMG made a number of recommendations including improving disclosureof the company’s climate resilience strategy. With KPMG’s support, the client gained a stronger understanding of the ESG expectations of itsinvestors and how to reshape its communications with them.
Improving the ESG performancescore of a major energy company02
Helping an industrial manufacturingcompany improve ESG communications with its investors01
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to beaccurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated withKPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Designed by CREATE. | CRT100544A | October 2018
kpmg.com/sustainability
Local KPMG contacts
ArgentinaMartin Mendivelzuammendivelzua@kpmg.com.ar
AustraliaAdrian V. Kingavking@kpmg.com.au
AustriaPeter Ertlpertl@kpmg.at
AzerbaijanVugar Aliyevvaliyev@kpmg.az
BelgiumMike Boonenmboonen@kpmg.com
BrazilRicardo Zibasrzibas@kpmg.com.br
CanadaBill J. Murphybillmurphy@kpmg.ca
CyprusIacovos Ghalanosiacovos.ghalanos@kpmg.com.cy
ChileLuis Felipe Encinalencina@kpmg.com
ChinaMaria Chengmaria.cheng@kpmg.com
ColombiaFabian Echeverriafecheverria@kpmg.com
Czech RepublicMiroslava Prokesovamprokesova@kpmg.cz
Costa RicaFlorely Quesadafquesada@kpmg.com
IsraelOren Grupiogrupi@kpmg.com
ItalyPierMario Barzaghipbarzaghi@kpmg.it
JapanKazuhiko Saitokazuhiko.saito@jp.kpmg.com
Yoshitake Funakoshiyoshitake.funakoshi@jp.kpmg.com
DenmarkFrances Iris Lufranceslu@kpmg.com
FinlandTomas Otterströmtomas.otterstrom@kpmg.fi
FrancePhilippe Arnaudparnaud@kpmg.fr
GermanyChristian Hellchell@kpmg.com
GreeceGeorge Raounasgraounas@kpmg.gr
HungaryIstván Szabóistvan.szabo@kpmg.hu
IndiaSanthosh Jayaramsanthoshj@kpmg.com
IndonesiaIan Hong ihong@kpmg.com.sg
IrelandMichael Hayesmichael.hayes@kpmg.ie
KazakhstanSaken Zhumashevszhumashev@kpmg.kz
LuxembourgGilles Poncingilles.poncin@kpmg.lu
PeruRosario Calderonrccalderon@kpmg.com
PolandKrzysztof Radziwonkradziwon@kpmg.pl
PortugalMartim Santosmartimsantos@kpmg.com
MalaysiaKasturi Nathankasturi@kpmg.com.my
MexicoJesus Lunajjluna@kpmg.com.mx
RomaniaGheorghita Diaconugdiaconu@kpmg.com
NetherlandsArjan de DraaijerdeDraaijer.Arjan@kpmg.nl
New ZealandErica Milesemiles@kpmg.co.nz
NigeriaTomi Adepojutomi.adepoju@ng.kpmg.com
NorwayAnette Rønnovanette.ronnov@kpmg.no
Russia, Ukraine, Georgia and ArmeniaIgor Korotetskiyikorotetskiy@kpmg.ru
SlovakiaQuentin Crossleyqcrossley@kpmg.sk
South AfricaShireen Naidooshireen.naidoo@kpmg.co.za
SwitzerlandAnne Van Heerdenannevanheerden@kpmg.com
TaiwanNiven HuangRegional Leader, KPMGSustainability Services in Asia Pacificnivenhuang@kpmg.com.tw
South KoreaHyoung-Chan Kimhyoungchankim@kr.kpmg.com
SpainJosé Luis Blasco VazquezGlobal Head, KPMG Sustainability Services jblasco@kpmg.es
UAE and Oman (Lower Gulf)Hanife Ymerhymer1@kpmg.com
Thailand Paul Flipsepflipse@kpmg.co.th
TurkeySirin Soysalssoysal@kpmg.com
UKTroy Mortimertroy.mortimer@kpmg.co.uk
USKatherine Bluekblue@kpmg.com
UruguayMartin Clerinomartinclerino@kpmg.com
VenezuelaJose O. Rodriguesjrodrigues@kpmg.com
SwedenTomas Otterströmtomas.otterstrom@kpmg.se
Jung-Nam Kimjungnamkim@kr.kpmg.com
SingaporeIan Hong ihong@kpmg.com.sg
Communicating with investors about environmental, social and governance (ESG) performance
How KPMG can help
kpmg.com/sustainability
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GIN © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with
which the independent member firms of the KPMG network are affiliated. 3© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity withwhich the independent member firms of the KPMG network are affiliated. 2
How we can helpKPMG member firms can provide bespoke ESG investor relations services to suit the needs of individual clients. Our support typically covers the following areas:
Analyze the ESG expectations of your investors
Different investors can have very different strategies and policies when itcomes to ESG. The first critical step to improving your ESG investorrelations is to develop a detailed understanding of how your keyinvestors approach ESG – be they institutional investors, asset managersor funds. KPMG professionals can help you understand your investorsbetter by performing a wide-ranging ESG analysis of your current and desired investor base.
A KPMG peer benchmarkinganalysis can show how yourcompany’s ESG strategy and investor communications activity measure up against others in yoursector. These analyses no longerfocus primarily on environmentalissues, but take a broad ESG viewand place growing emphasis on social impact and value creation for society.
Understand how your investors perceive your ESGperformance and strategy
Understanding the views of your investors is a critical step towardsdesigning a more effective ESG investor relations strategy. KPMGprofessionals are experienced in conducting interview-basedresearch to find out what investors think about an organization’sESG performance and strategy. Interviews also draw out how the investor’s own approaches to ESG are developing and what the implications are for your organization and sector. This research istypically delivered as a report to the Board of Directors.
01
Evaluate your organization against your competitors
A confusing array of ESG investmentindices and rankings has emerged in recent years. Responding to these organizations’ data requests can be time-consuming for investor relationsteams. KPMG specialists can help you identify the indices and ratings with the most influence on your investor base.KPMG professionals are also highlyexperienced in helping companies to improve their performance in the keyESG indices and rankings.
Prioritize ESG indices and rankingsand improve your performance04 05
06
How we can help (continued)
Assess how your company meetsyour investors’ ESG expectations
KPMG professionals can help you to avoid mismatches between yourinvestors’ ESG expectations and yourcompany’s ESG performance and communication. Their assessment canreveal any gaps in your ESGperformance, identify investors’ ESGfilters that the company may not pass,and assess how relevant your reporting materials are to your key investors’ ESG expectations.
Improve the quality of your ESGinvestor communications
Based on an analysis of your investors’ESG expectations and how well yourcompany fulfils them, KPMGprofessionals can help you respond better to those expectations. They can help you engage with investors and communicate your ESG story more effectively in the language of investors,whether through your online investorcenter, presentations and roadshows, orresponses to specific investor enquiries.
0302
ESG is a growing focus for investors Investors are taking a growing interest in the environmental, social and governance (ESG) performance of the companies they invest in.
The scrutiny is not only coming from the growing market of responsible investors; mainstream investors too are looking more closely at ESG as they begin to look beyond short-term investment horizons to the creation of longer term shareholder value.
Issues like modern slavery, financial climate risk, energy transition, responsible tax practices and impact investment were simply not part of investors’ vocabulary just a few years ago, but are commonly discussed today. And the way in which companies respond to the ESG expectations of their investors has growing implications for the cost of capital.
Analysts expect this trend to accelerate as the socially-conscious generations who grew up with global challenges like climate change and runaway population growth begin to wield greater investment power.
So, now more than ever, it’s critical for companies to engage with investors on ESG, and shape their ESG messages to meet investors’ expectations.
KPMG member firms have a network of ESG and investor relations specialists who can help your company enhance its ESG communications with investors and improve your performance in key ESG indices and rankings.Talk to us to find out more.
Contact us t o find out how KPMG member firms can help you.
Tomas Otterström
Global Leader, Sustainable Finance Services, KPMG International.Partner, KPMG in Finland and KPMG in Sweden. tomas.otterstrom@kpmg.fi | tomas.otterstrom@kpmg.se
Tomas works with international clients to enable them to build robust ESG strategies and effectively communicate these to investors, analysts and wider stakeholders. With over 20 years of work experience, he has worked with dozens of institutional investors, asset management companies, and large corporates. He is well connected with key organizations in this space such as the UN Principles for Responsible Investment (PRI).
Ramón Pueyo
Leader, ESG Investor Relations Services, KPMG International. Partner, KPMG in Spain. rpueyo@kpmg.es
Riikka Sievanen
Leader, Sustainable Finance global network, KPMG International. Senior Manager, KPMG i n Finland. riikka.sievanen@kpmg.fi
Marian MacBryde
Director, KPMG Makinson Cowell KPMG in t he UK. msm@makinson-cowell.com
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 1
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GIN © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with
which the independent member firms of the KPMG network are affiliated. 1 © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity withwhich the independent member firms of the KPMG network are affiliated. 3
ESG is a growing focus for investorsInvestors are taking a growing interest in the environmental, social and governance (ESG)performance of the companies they invest in.
The scrutiny is not only coming from the growing market of responsible investors; mainstreaminvestors too are looking more closely at ESG as they begin to look beyond short-term investmenthorizons to the creation of longer term shareholder value.
Issues like modern slavery, financial climate risk, energy transition, responsible tax practices andimpact investment were simply not part of investors’ vocabulary just a few years ago, but are commonly discussed today. And the way in which companies respond to the ESG expectations oftheir investors has growing implications for the cost of capital.
Analysts expect this trend to accelerate as the socially-conscious generations who grew up with global challenges like climate change and runaway population growth begin to wield greaterinvestment power.
So, now more than ever, it’s critical for companies to engage with investors on ESG, and shape their ESG messages to meet investors’ expectations.
KPMG member firms have a network of ESG and investor relations specialists who can help yourcompany enhance its ESG communications with investors and improve your performance in keyESG indices and rankings.Talk to us to find out more.
Tomas Otterström
Global Leader, Sustainable Finance Services, KPMG International.Partner, KPMG in Finland.tomas.otterstrom@kpmg.fi
Tomas works with international clients to enable them to build robust ESG strategies and effectivelycommunicate these to investors, analysts and wider stakeholders. With over 20 years of workexperience, he has worked with dozens of institutional investors, asset management companies,and large corporates. He is well connected with key organizations in this space such as the UN Principles for Responsible Investment (PRI).
Ramón Pueyo
Leader, ESG Investor RelationsServices, KPMG International.Partner, KPMG in Spain.rpueyo@kpmg.es
Riikka Sievanen
Leader, Sustainable Finance global network, KPMGInternational.Senior Manager, KPMG in Finland.riikka.sievanen@kpmg.fi
Marian MacBryde
Director, KPMGMakinson CowellKPMG in the UK.msm@makinson-cowell.com
Contact us to find out how KPMG member firms can help you.
A KPMG peer benchmarkinganalysis can show how yourcompany’s ESG strategy and investor communications activity measure up against others in yoursector. These analyses no longerfocus primarily on environmentalissues, but take a broad ESG viewand place growing emphasis on social impact and value creation for society.
Understand how your investors perceive your ESGperformance and strategy
Understanding the views of your investors is a critical step towardsdesigning a more effective ESG investor relations strategy. KPMGprofessionals are experienced in conducting interview-basedresearch to find out what investors think about an organization’sESG performance and strategy. Interviews also draw out how the investor’s own approaches to ESG are developing and what the implications are for your organization and sector. This research istypically delivered as a report to the Board of Directors.
Evaluate your organization against your competitors
A confusing array of ESG investmentindices and rankings has emerged in recent years. Responding to these organizations’ data requests can be time-consuming for investor relationsteams. KPMG specialists can help you identify the indices and ratings with the most influence on your investor base.KPMG professionals are also highlyexperienced in helping companies to improve their performance in the keyESG indices and rankings.
Prioritize ESG indices and rankingsand improve your performance04 05
06
How we can help (continued)
How we can help KPMG member firms can provide bespoke ESG investor relations services to suit the needs of individual clients. Our support typically covers the following areas:
01 Analyze the ESG expectations of your investors
Different investors can have very different strategies and policies when it comes to ESG. The first critical step to improving your ESG investor relations is to develop a detailed understanding of how your key investors approach ESG – be they institutional investors, asset managers or funds. KPMG professionals can help you understand your investors better by performing a wide-ranging ESG analysis of your current and desired investor base.
02 Assess how your company meets your investors’ ESG expectations
KPMG professionals can help you to avoid mismatches between your investors’ ESG expectations and your company’s ESG performance and communication. Their assessment can reveal any gaps in your ESG performance, identify investors’ ESG filters that the company may not pass, and assess how relevant your reporting materials are to your key investors’ ESG expectations.
03
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 2
Improve the quality of your ESG investor communications
Based on an analysis of your investors’ ESG expectations and how well your company fulfils them, KPMG professionals can help you respond better to those expectations. They can help you engage with investors and communicate your ESG story more effectively in the language of investors, whether through your online investor center, presentations and roadshows, or responses to specific investor enquiries.
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GIN © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with
which the independent member firms of the KPMG network are affiliated. 1 © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity withwhich the independent member firms of the KPMG network are affiliated. 2
How we can helpESG is a growing focus for investorsInvestors are taking a growing interest in the environmental, social and governance (ESG)performance of the companies they invest in.
The scrutiny is not only coming from the growing market of responsible investors; mainstreaminvestors too are looking more closely at ESG as they begin to look beyond short-term investmenthorizons to the creation of longer term shareholder value.
Issues like modern slavery, financial climate risk, energy transition, responsible tax practices andimpact investment were simply not part of investors’ vocabulary just a few years ago, but are commonly discussed today. And the way in which companies respond to the ESG expectations oftheir investors has growing implications for the cost of capital.
Analysts expect this trend to accelerate as the socially-conscious generations who grew up with global challenges like climate change and runaway population growth begin to wield greaterinvestment power.
So, now more than ever, it’s critical for companies to engage with investors on ESG, and shape their ESG messages to meet investors’ expectations.
KPMG member firms have a network of ESG and investor relations specialists who can help yourcompany enhance its ESG communications with investors and improve your performance in keyESG indices and rankings.Talk to us to find out more.
Tomas Otterström
Global Leader, Sustainable Finance Services, KPMG International.Partner, KPMG in Finland.tomas.otterstrom@kpmg.fi
Tomas works with international clients to enable them to build robust ESG strategies and effectivelycommunicate these to investors, analysts and wider stakeholders. With over 20 years of workexperience, he has worked with dozens of institutional investors, asset management companies,and large corporates. He is well connected with key organizations in this space such as the UN Principles for Responsible Investment (PRI).
Ramón Pueyo
Leader, ESG Investor RelationsServices, KPMG International.Partner, KPMG in Spain.rpueyo@kpmg.es
Riikka Sievanen
Leader, Sustainable Finance global network, KPMGInternational.Senior Manager, KPMG in Finland.riikka.sievanen@kpmg.fi
Marian MacBryde
Director, KPMGMakinson CowellKPMG in the UK.msm@makinson-cowell.com
Contact us to find out how KPMG member firms can help you.
KPMG member firms can provide bespoke ESG investor relations services to suit the needs of individual clients. Our support typically covers the following areas:
Analyze the ESG expectations of your investors
Different investors can have very different strategies and policies when itcomes to ESG. The first critical step to improving your ESG investorrelations is to develop a detailed understanding of how your keyinvestors approach ESG – be they institutional investors, asset managersor funds. KPMG professionals can help you understand your investorsbetter by performing a wide-ranging ESG analysis of your current and desired investor base.
01
Assess how your company meetsyour investors’ ESG expectations
KPMG professionals can help you to avoid mismatches between yourinvestors’ ESG expectations and yourcompany’s ESG performance and communication. Their assessment canreveal any gaps in your ESGperformance, identify investors’ ESGfilters that the company may not pass,and assess how relevant your reporting materials are to your key investors’ ESG expectations.
Improve the quality of your ESGinvestor communications
Based on an analysis of your investors’ESG expectations and how well yourcompany fulfils them, KPMGprofessionals can help you respond better to those expectations. They can help you engage with investors and communicate your ESG story more effectively in the language of investors,whether through your online investorcenter, presentations and roadshows, orresponses to specific investor enquiries.
0302
How we can help (continued)
04 Prioritize ESG indices and rankings and improve your performance
A confusing array of ESG investment indices and rankings has emerged in recent years. Responding to these organizations’ data requests can be time-consuming for investor relations teams. KPMG specialists can help you identify the indices and ratings with the most influence on your investor base. KPMG professionals are also highly experienced in helping companies to improve their performance in the key ESG indices and rankings.
05 Evaluate your organizationagainst your competitors
A KPMG peer benchmarking analysis can show how your company’s ESG strategy and investor communications activity measure up against others in your sector. These analyses no longer focus primarily on environmental issues, but take a broad ESG view and place growing emphasis on social impact and value creation for society.
06 Understand how your investors perceive your ESG performance and strategy
Understanding the views of your investors is a critical step towards designing a more effective ESG investor relations strategy. KPMG professionals are experienced in conducting interview-based research to find out what investors think about an organization’s ESG performance and strategy. Interviews also draw out how the investor’s own approaches to ESG are developing and what the implications are for your organization and sector. This research is typically delivered as a report to the Board of Directors.
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 3
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Communicating with investors about environmental, social and governance (ESG) performance
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to beaccurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated withKPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Designed by CREATE. | CRT100544A | October 2018
kpmg.com/sustainability
Local KPMG contacts
ArgentinaMartin Mendivelzuammendivelzua@kpmg.com.ar
AustraliaAdrian V. Kingavking@kpmg.com.au
AustriaPeter Ertlpertl@kpmg.at
AzerbaijanVugar Aliyevvaliyev@kpmg.az
BelgiumMike Boonenmboonen@kpmg.com
BrazilRicardo Zibasrzibas@kpmg.com.br
CanadaBill J. Murphybillmurphy@kpmg.ca
CyprusIacovos Ghalanosiacovos.ghalanos@kpmg.com.cy
ChileLuis Felipe Encinalencina@kpmg.com
ChinaMaria Chengmaria.cheng@kpmg.com
ColombiaFabian Echeverriafecheverria@kpmg.com
Czech RepublicMiroslava Prokesovamprokesova@kpmg.cz
Costa RicaFlorely Quesadafquesada@kpmg.com
IsraelOren Grupiogrupi@kpmg.com
ItalyPierMario Barzaghipbarzaghi@kpmg.it
JapanKazuhiko Saitokazuhiko.saito@jp.kpmg.com
Yoshitake Funakoshiyoshitake.funakoshi@jp.kpmg.com
DenmarkFrances Iris Lufranceslu@kpmg.com
FinlandTomas Otterströmtomas.otterstrom@kpmg.fi
FrancePhilippe Arnaudparnaud@kpmg.fr
GermanyChristian Hellchell@kpmg.com
GreeceGeorge Raounasgraounas@kpmg.gr
HungaryIstván Szabóistvan.szabo@kpmg.hu
IndiaSanthosh Jayaramsanthoshj@kpmg.com
IndonesiaIan Hong ihong@kpmg.com.sg
IrelandMichael Hayesmichael.hayes@kpmg.ie
KazakhstanSaken Zhumashevszhumashev@kpmg.kz
LuxembourgGilles Poncingilles.poncin@kpmg.lu
PeruRosario Calderonrccalderon@kpmg.com
PolandKrzysztof Radziwonkradziwon@kpmg.pl
PortugalMartim Santosmartimsantos@kpmg.com
MalaysiaKasturi Nathankasturi@kpmg.com.my
MexicoJesus Lunajjluna@kpmg.com.mx
RomaniaGheorghita Diaconugdiaconu@kpmg.com
NetherlandsArjan de DraaijerdeDraaijer.Arjan@kpmg.nl
New ZealandErica Milesemiles@kpmg.co.nz
NigeriaTomi Adepojutomi.adepoju@ng.kpmg.com
NorwayAnette Rønnovanette.ronnov@kpmg.no
Russia, Ukraine, Georgia and ArmeniaIgor Korotetskiyikorotetskiy@kpmg.ru
SlovakiaQuentin Crossleyqcrossley@kpmg.sk
South AfricaShireen Naidooshireen.naidoo@kpmg.co.za
SwitzerlandAnne Van Heerdenannevanheerden@kpmg.com
TaiwanNiven HuangRegional Leader, KPMGSustainability Services in Asia Pacificnivenhuang@kpmg.com.tw
South KoreaHyoung-Chan Kimhyoungchankim@kr.kpmg.com
SpainJosé Luis Blasco VazquezGlobal Head, KPMG Sustainability Services jblasco@kpmg.es
UAE and Oman (Lower Gulf)Hanife Ymerhymer1@kpmg.com
Thailand Paul Flipsepflipse@kpmg.co.th
TurkeySirin Soysalssoysal@kpmg.com
UKTroy Mortimertroy.mortimer@kpmg.co.uk
USKatherine Bluekblue@kpmg.com
UruguayMartin Clerinomartinclerino@kpmg.com
VenezuelaJose O. Rodriguesjrodrigues@kpmg.com
SwedenTomas Otterströmtomas.otterstrom@kpmg.se
Jung-Nam Kimjungnamkim@kr.kpmg.com
How KPMG can help
kpmg.com/sustainability
SingaporeIan Hong ihong@kpmg.com.sg
Client stories
01 Helping an industrial manufacturing company improve ESG communications with its investors
The investor relations team at a global industrial manufacturing company saw increased investor interest in the company’s ESG performance. As a result, they needed a better understanding of their investors’ needs for ESG information and how they could improve the company’s ESG investor communications.
KPMG in Finland evaluated the ESG approaches of multiple institutional investors, with a focus on the UK and US. The KPMG team analyzed these investors’ ESG strategies, commitments to international frameworks, public statements, reports and policies, and also conducted in-depth interviews with them. Based on this research, KPMG identified the ESG topics of most importance to these key investors and advised the client on how to align its ESG approach with its investors’ expectations.
For example, KPMG professionals found that the client’s transparency on its approach to climate change fell short of some investors’ expectations. KPMG made a number of recommendations including improving disclosure of the company’s climate resilience strategy. With KPMG’s support, the client gained a stronger understanding of the ESG expectations of its investors and how to reshape its communications with them.
02 Improving the ESG performance score of a major energy company
A major European energy company wanted to improve its performance scores in high profile ESG indices and ratings. Its goal was to become one of the highest-rated companies in its sector for ESG performance. To achieve this, its investor relations team needed a better understanding of the criteria that ESG ratings agencies assess and how they measure performance.
ESG investor relations specialists at KPMG in Spain analyzed the methodologies of ten major ESG ratings agencies. They also conducted in-depth interviews with several agencies to determine which ESG topics they considered critical and why, which emerging topics were gaining significance, and how the various rating methodologies differed.
KPMG’s analysis helped the client understand which areas of its ESG activity it should prioritize to achieve better ratings. Recommendations included improvements in Board oversight of ESG and new corporate governance approaches. With KPMG’s support, the company developed and implemented a strategy to improve its ratings and was also better prepared to respond to ESG enquiries from investors and ratings agencies.
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 4
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Client stories
Communicating with investors about environmental, social and governance (ESG) performanceA major European energy company wanted to improve its performance
scores in high profile ESG indices and ratings. Its goal was to becomeone of the highest-rated companies in its sector for ESG performance.To achieve this, its investor relations team needed a better understandingof the criteria that ESG ratings agencies assess and how theymeasure performance.
ESG investor relations specialists at KPMG in Spain analyzed themethodologies of ten major ESG ratings agencies. They also conducted in-depth interviews with several agencies to determine which ESG topicsthey considered critical and why, which emerging topics were gainingsignificance, and how the various rating methodologies differed.
KPMG’s analysis helped the client understand which areas of its ESG activity it should prioritize to achieve better ratings. Recommendationsincluded improvements in Board oversight of ESG and new corporategovernance approaches. With KPMG’s support, the company developed and implemented a strategy to improve its ratings and was also betterprepared to respond to ESG enquiries from investors and ratings agencies.
The investor relations team at a global industrial manufacturing company saw increased investor interest in the company’s ESG performance. As aresult, they needed a better understanding of their investors’ needs forESG information and how they could improve the company’s ESGinvestor communications.
KPMG in Finland evaluated the ESG approaches of multiple institutionalinvestors, with a focus on the UK and US. The KPMG team analyzed theseinvestors’ ESG strategies, commitments to international frameworks,public statements, reports and policies, and also conducted in-depth interviews with them. Based on this research, KPMG identified the ESGtopics of most importance to these key investors and advised the client on how to align its ESG approach with its investors’ expectations.
For example, KPMG professionals found that the client’s transparency on its approach to climate change fell short of some investors’ expectations.KPMG made a number of recommendations including improving disclosureof the company’s climate resilience strategy. With KPMG’s support, the client gained a stronger understanding of the ESG expectations of itsinvestors and how to reshape its communications with them.
Improving the ESG performancescore of a major energy company02
Helping an industrial manufacturingcompany improve ESG communications with its investors01
How KPMG can help
kpmg.com/sustainability
Local KPMG contacts
Argentina Martin Mendivelzua mmendivelzua@kpmg.com.ar
Australia Adrian V. King avking@kpmg.com.au
Austria Peter Ertl pertl@kpmg.at
Azerbaijan Vugar Aliyev valiyev@kpmg.az
Belgium Mike Boonen mboonen@kpmg.com
Brazil Ricardo Zibas rzibas@kpmg.com.br
Canada Bill J. Murphy billmurphy@kpmg.ca
Cyprus Iacovos Ghalanos iacovos.ghalanos@kpmg.com.cy
Chile Luis Felipe Encina lencina@kpmg.com
China Maria Cheng maria.cheng@kpmg.com
Colombia Fabian Echeverria fecheverria@kpmg.com
Czech Republic Miroslava Prokesova mprokesova@kpmg.cz
Costa Rica Florely Quesada fquesada@kpmg.com
Denmark Frances Iris Lu franceslu@kpmg.com
Finland Tomas Otterström tomas.otterstrom@kpmg.fi
France Philippe Arnaud parnaud@kpmg.fr
Germany Christian Hell chell@kpmg.com
Greece George Raounas graounas@kpmg.gr
Hungary István Szabó istvan.szabo@kpmg.hu
India Santhosh Jayaram santhoshj@kpmg.com
Indonesia Ian Hong ihong@kpmg.com.sg
Ireland Michael Hayes michael.hayes@kpmg.ie
Israel Oren Grupi ogrupi@kpmg.com
Italy PierMario Barzaghi pbarzaghi@kpmg.it
Japan Kazuhiko Saito kazuhiko.saito@jp.kpmg.com
Yoshitake Funakoshi yoshitake.funakoshi@jp.kpmg.com
Kazakhstan Saken Zhumashev szhumashev@kpmg.kz
Luxembourg Gilles Poncin gilles.poncin@kpmg.lu
Peru Rosario Calderon rccalderon@kpmg.com
Poland Krzysztof Radziwon kradziwon@kpmg.pl
Portugal Martim Santos martimsantos@kpmg.com
Malaysia Kasturi Nathan kasturi@kpmg.com.my
Mexico Jesus Luna jjluna@kpmg.com.mx
Romania Gheorghita Diaconu gdiaconu@kpmg.com
Netherlands Arjan de Draaijer deDraaijer.Arjan@kpmg.nl
New Zealand Erica Miles emiles@kpmg.co.nz
Nigeria Tomi Adepoju tomi.adepoju@ng.kpmg.com
Norway Anette Rønnov anette.ronnov@kpmg.no
Russia, Ukraine, Georgia and Armenia Igor Korotetskiy ikorotetskiy@kpmg.ru
Singapore Ian Hong ihong@kpmg.com.sg
Slovakia Quentin Crossley qcrossley@kpmg.sk
South Africa Shireen Naidoo shireen.naidoo@kpmg.co.za
South Korea Hyoung-Chan Kim hyoungchankim@kr.kpmg.com
Jung-Nam Kim jungnamkim@kr.kpmg.com
Spain José Luis Blasco Vazquez Global Head, KPMG Sustainability Services jblasco@kpmg.es
Sweden Tomas Otterström tomas.otterstrom@kpmg.se
Switzerland Anne Van Heerden annevanheerden@kpmg.com
Taiwan Niven Huang Regional Leader, KPMG Sustainability Services in Asia Pacific nivenhuang@kpmg.com.tw
Thailand Paul Flipse pflipse@kpmg.co.th
Turkey Sirin Soysal ssoysal@kpmg.com
UAE and Oman (Lower Gulf) Hanife Ymer hymer1@kpmg.com
UK Troy Mortimer troy.mortimer@kpmg.co.uk
US Katherine Blue kblue@kpmg.com
Uruguay Martin Clerino martinclerino@kpmg.com
Venezuela Jose O. Rodrigues jrodrigues@kpmg.com
kpmg.com/sustainability
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© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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