A benign bombshell explodes
Submitted by Corporate Citizenship
On Thursday morning S&P Global dropped a bombshell.
And that’s important. S&P Global is the promoter of what many people still refer to as the DJSI.
OK, so why is it a bombshell? Is it because a question-by-question scorecard is to be generated for companies?
No. It is because:
“Once companies have had an opportunity to familiarize themselves with their scores at question level, S&P Global plans to provide the capital market with increased insight into question-level scores.”
Investors are going to be able to access companies’ question-level scores. They will be able to use them in making investment decisions. That development reflects the exponentially growing demand for ESG data. For real, gritty ESG data. That is what the market wants.
So, while the news landed like a bombshell, on inspection it turns out to be a benign one.
Companies should seize the opportunity this development offers!
It opens a treasure trove showing where a company’s strengths and weaknesses are.
Get down there in the detail! Share the detail with the issue owners who provided the information! Get improvement plans in place to plug the gaps!
These actions will assist not just with the DJSI. Over time they will help improve the scores in other investor-facing indices.
I have been helping companies respond to the annual questionnaire since DJSI was launched. Corporate Citizenship helps dozens of companies respond each year.
This is the most important development in that 20 plus years’ history.
Get in there. Analyse the new detailed scorecard. Use it to improve your on-the-ground performance. It’s a splendid opportunity. Use it.
Corporate Citizenship is a full service corporate responsibility management consulting company, with offices in the UK, US and Singapore. Since 1997, we have advised leading, multinational corporations on how to enhance and align their citizenship and traditional business activities to create strategic business value. Our knowledgeable team have unrivaled breadth of experience and expertise to help clients achieve greater, long-term, sustainable success.
Our services include strategy, community investment/corporate giving, reporting, assurance, stakeholder engagement, management of environmental risk, and economic impact. Our clients are international and domestic companies from many industries including Unilever, Abbott, HSBC, Verizon, National Grid, State Street and Diageo.
We also manage the LBG, on behalf of it corporate members. LBG is the global standard for measuring community investment, and forms the basis for the community investment reporting sections of other global indices such as DJSI, GRI, and the BITC CR Index. Over 300 companies around the world use the LBG Model and participate in LBG benchmarking groups to share and drive best practice in corporate community involvement.
More from Corporate Citizenship