Environmental And Social Governance

Public companies are obliged to report on their plans and actions to reduce their environmental impact. This a major element of annual reports and company communications. Companies are evaluating their supply chains based on their environmental performance. ESG influences how companies are perceived by the public and affects consumer choices. It also has a bearing on shareholder confidence and is reflected in company valuation.

As simple as this sounds there are many pitfalls. All organisations consume in the form of energy and physical materials. Efforts need to be made to reduce consumption and recycle materials. However, it is not possible to reduce to zero and therefore carbon offsets must be considered if an organisation is to meet a nett zero target.

In purchasing offsets great care needs to be taken in assuring that the offsets are from reliable sources. It is also important that the provenance of carbon offsets is verifiable. There needs to be great scrutiny applied to the methodologies used to generate the offsets. Conversely, companies that purchase offsets from unreliable sources can do damage to their brand.

In the case of hemp, the inputs are verifiable and traceable. It has low inputs in terms of water and is beneficial to soil health. It can be grown organically without the use of pesticides, insecticides or herbicides. Due to the superior capacity for carbon sequestration additionality can be proven compared to prior land use.

Carbon Futures has the capacity and expertise to work with clients and their agents to ensure that the positive actions of the organisation are clearly communicated to stakeholders and consumers.

Environmental

This includes energy consumed, resources used, waste produced and the consequential impact on the environment and living entities. E encompasses carbon emissions and climate change. Every company consumes energy and resources; every company affects, and is affected by, the environment.

Social

Social criteria, concerns the relationships a company has and the reputation it fosters with people and institutions in the communities where it does business. S includes labour relations and diversity and inclusion. Every company operates within a broader, diverse society.

Governance

Governance, is the internal system of practices, controls, and procedures a company adopts in order to govern itself, make effective decisions, comply with the law, and meet the needs of external stakeholders. Every company, which is itself a legal creation, requires governance.

According to Standard & Poor companies are increasingly being valued on intangible assets rather than tangible assets.

S&P states that: –

$22.9 trillion of investments under management globally are orientated broadly toward ESG policies
In the US 20% ($8.7 trillion of all investments under professional management are broadly orientated toward ESG policies.
95% of responding institutional investors plan to engage with companies that they invest in about issues related to Sustainable Development Goals.

These services will be subject to fees on the same basis as a communications or marketing strategy agency. This will maximise the benefits to the brand and avoid any internal or external “greenwashing” which can negatively affect brand image, brand value and company valuation.

Carbon Futures works directly with companies on major projects. This ensures that companies are able to leverage their direct involvement in hemp projects in Australia and internationally. The company’s actions on climate change become a key part of the brand’s reputation and add to brand valuation.