In this episode, I visit with Rakhi Kumar, from State Street Global Advisors on building sustainability into your long term corporate growth strategy. With corporate governance in the limelight, it’s more important than ever for companies to take measures to incorporate governance into their strategic planning. She discusses a recent a State Street Global Advisors, initiative outlining a framework for how boards can work with management to incorporate a sustainability lens into long-term strategy. As one of the largest index managers in the world, SSGA’s size, global scale, strong voting record and long-term ownership provide a unique, top-down vantage point across industries and countries on the ESG risks and opportunities confronting companies and their shareholders.
SSGA’s framework reviews and categorizes a company’s approach to sustainability according to three criteria:
- Has the company identified material environmental and social sustainability issues relevant to its business?
- Has the company assessed and, where necessary, incorporated the implications of environmental and social sustainability issues into the company’s long-term strategy?
- Has the company adequately communicated the company’s approach to sustainability issues and its influence on strategy?
Kumar discusses the framework for evaluating a company’s approach to sustainability, a list of questions to help guide directors on incorporating sustainability into strategy and provides some examples of how companies have succeeded in the approach.