Introducing the ESG Compass Model

The Covid-19 crisis has highlighted a shift in the way that ESG and Sustainability is understood and put into practice by companies.

If environmental, social and governance concerns were in the past often interpreted as three separate, marginal issues, they are now clearly both more inter-connected and central to business performance. FTI Consulting’s 2020 Resilience Barometer™ C-suite insights reaffirmed the growing relevance of ESG and Sustainability issues for companies. 81% of leaders surveyed admitted that their company are under pressure to improve their ESG offerings, with 28% saying they were under ‘extreme pressure’.

Engagement and communications are an essential element of successful financial performance, both for short-term resilience and longer-term sustainability. However, planning must be rooted in a robust understanding of ESG and financial performance data relative to legal compliance requirements, insight into policy and regulation, as well as stakeholder and shareholder views. Insights captured from 250 global institutional investors showed 88% agree that ‘there should be more reporting on the actual impact of their activities’.

Companies must effectively match commitments against expectations. Resilience means being prepared for what comes next. As we all continue to protect, adapt and prepare for the new normal in a post COVID-19 world, the global FTI Resilience Barometer ™ brings C-suite insights to help organisations protect value and re-build resilience by balancing short-term imperatives with a longer-term focus. To thrive in the new normal, companies have an opportunity to embrace sustainability to build resilience and protect value today and tomorrow. The ESG Compass Model enables us to help companies understand and assess how they perform in relation to their peers, and to ensure our support for their ESG and Sustainability plans match this performance to their purpose, and the expectations of investors and stakeholders alike.