Millani’s Annual ESG Disclosure Study:
A Canadian Perspective
A study of the S&P/TSX Composite Index and their ESG disclosures in 2019
Over the past several years, Millani has been assessing the ESG (environmental, social and governance) and sustainability disclosures of the S&P/TSX Composite Index constituents, providing insight and context to the research and identified trends. With increasing demands from financial stakeholders for material information, we have gathered data on Canadian companies’ uses of reporting standards and frameworks such as the GRI, SASB and TCFD, along with data on how many companies are disclosing on topics such as diversity, water scarcity and climate change.
Is COVID-19 Affecting ESG Integration?
A Canadian Investor Perspective
The COVID-19 crisis has impacted every industry of our economy, but what will be the effects on ESG, Responsible Investment and Sustainable Finance? From April 20th to April 30th, 2020, Millani conducted in-depth interviews with more than 20 Canadian institutional investors, representing $2.3 trillion of assets under management, to gather their views on what the crisis may mean for ESG, and what their expectations are towards corporate issuers.
ESG and the Culture Imperative
During the latter part of 2019 and into early 2020, Millani, in collaboration with our partners, the TMX Group and MNP Consulting, hosted a number of events across Canada on “ESG and the Culture Imperative”. Our speakers made it clear that corporate culture is a valuable intangible asset that will determine the success of an organization’s ability to weather economic storms. This is its connection to ESG.
Read a summary of these discussions in the attached paper: “ESG and the Culture Imperative”. Click here to download the report.
COVID-19 and its Connection to ESG
The financial markets are giving signs that the COVID-19 pandemic will have deep and lasting impacts on our economy. As a leader in the ESG (Environmental, Social and Governance) space globally, over the past two weeks I’ve repeatedly been asked: “How will investors react? What will they be expecting of corporates?”.
Read our views on how sustainable finance will fit into the recovery plan. Click here to download the report.
2019: A Milestone Year for ESG
2019 was a milestone year for Sustainable Finance and Responsible Investment. Record-breaking assets flowed into sustainable investment funds and various stakeholders started to integrate ESG in a more sophisticated way. These trends are likely to continue into 2020, and all stakeholders will need to educate themselves on the potential implications.
Read our overview of the biggest ESG, Responsible Investment and Sustainable Finance trends from 2019, and what the impacts might be in 2020. Click here to download the report.
The Role of CDP Disclosure to Improve Access to Capital
A study of the impact of disclosure through the CDP
and the SEC on a firm’s access to capital
Do climate-related disclosures lead to better financial performance, or are they merely a symbolic measure to improve public reputation, without materially affecting the firm’s performance? Does disclosing climate-related information create value and does it justify the costs? If so, where should firms disclose climate-related information given the proliferation of rules, guidelines and standards on sustainability?
To help answer some of these complex questions, this research note examines one dimension in which climate-related disclosures could affect firm performance: access to capital. Click here to download the report.
ESG Disclosures: A Canadian Perspective
A study of the S&P/TSX Composite Index and their sustainability communications in 2018
How are Canadian companies doing in disclosing ESG issues? Our white paper reveals that the proportion of companies on the S&P/TSX Composite Index with a dedicated report on sustainability, increased from 45% in 2017 towards an estimated 54% in 2018. Of the 115 companies that published a 2018 sustainability report to date, 15% looked to the SASB framework to inform on their material issues and while 25% indicated their support for the TCFD recommendations.
We invite you to read our paper for more insights on the state of ESG disclosure in Canada.
The Evolution of Long-term Emerging Qualitative Risks (LTEQR) Analysis
co-authored by Stéfanie Kibsey, Amr Addas, and Milla Craig (with advice from Stephen Kibsey)
Investors increasingly realize long-term emerging qualitative risks (LTEQR) have financial consequences on investments, yet these risks are very difficult to assess due to their intangibility. LTEQR analysis is complementary to traditional fundamental analysis of enterprises. It continues to evolve over time and intersects with many of the concepts introduced by sustainability and ESG analysis. The challenge to the investor is having the appropriate risk analysis tools available to help make a judgement on the investment’s vulnerability and resilience to a LTEQR.