The alignment of sustainability standards is necessary to understand the real impact of climate change on company portfolios, according to two experts in the sustainability field.
“We have to define common guidelines – a sort of ‘common sense’ – for measuring and reporting, but, at the same time, ensure the differences in language because of varied sustainability contexts around the world,” says Giulia Genuardi, head of sustainability planning, performance management and human rights at Enel during an GRI podcast. “At Enel, we have the same targets in different parts and sectors of the company – including the strategy, our sustainability plan, remuneration plan as well as financial instruments. That way, we are totally aligned with our purpose.”
Mindy Lubber, president and CEO of Ceres, agrees: “Currently, we are on a journey to get aligned, so that we do not have five different standard-setters, but only one or two. Alignment in language is also important.
“In 2004, we hosted our first Investors Summit on Climate Risk, inviting all the largest investors in the world. Back then, investors simply did not know what we were talking about and the impact of the environment-related issues on their portfolios. Now, of course, every one of the major financial firms does nothing but put out reports on the financial implications of climate.”