Sustainability In Motion

Welcome to Sustainability in Motion! Join the ED4S team as we engage thought leaders in sustainability, uncovering the latest trends and their practical implications. Discover how various sustainability factors influence businesses and finance in a rapidly changing world. Our expert guests share actionable strategies and best practices for professionals, investors, entrepreneurs, and sustainability enthusiasts alike.

Episode 22: Greenwashing 06/10/2025

Episode 21: Managing Sustainability Risks 05/09/2025

Episode 20: The Boardroom Illusion 04/08/2025

Episode 19: The Wellbeing Economy 03/11/2025

Episode 18: Income Inequality 02/12/2025

Episode 17: 2025 Outlook 01/22/2025

Episode 16: Systems Change Through Investing 12/10/2024

Episode 15: System Level Investing 11/12/2024

Episode 15: System Level Investing Episode Overview: In this episode, Matt Orsagh and Nawar Alsaadi of ED4S sit down with Jon Lukomnik, a leading figure in sustainable finance and co-author of Moving Beyond Modern Portfolio Theory. Jon explores the limitations of Modern Portfolio Theory (MPT) in addressing long-term, systemic risks like climate change, highlighting the evolution toward "system-level investing." Key Takeaways: Limitations of MPT: MPT is designed for idiosyncratic risk (individual asset variance) but fails to account for systemic risks, which cannot be diversified away. Lukomnik notes that while MPT focuses on market-relative risk, it overlooks larger economic and environmental factors that affect the entire market. System-Level Investing: Lukomnik advocates for a shift towards system-level investing, where investors engage in strategies to mitigate systemic risks like climate change, inequality, and biodiversity loss. This approach involves collaborative stewardship and policy engagement to reduce overall portfolio risk. Collaboration and Collective Action: Collaborative efforts, such as Climate Action 100+, enhance the impact of investors on global issues. Though the free-rider problem exists, Lukomnik observes that collective initiatives are crucial in addressing systemic challenges. Practical Approaches: Practical tools for system-level investors include investment enhancements (e.g., climate-aligned private equity and infrastructure projects), stewardship, policy advocacy, and setting clear boundaries for ESG targets. Engaging with policymakers and stakeholders strengthens the collective response to systemic risks. The Role of Policy: Effective systemic risk mitigation requires a synergy between investors, policy, and NGOs. Policy is critical in shaping sustainable practices, yet investor engagement and capital flow remain vital in driving actionable change. ____________________ Transcript: Hello, everyone! Welcome to the Sustainability in Motion podcast, brought to you by ED4S. Our focus is on the fast-moving world of sustainability, helping the business community better understand and navigate the environmental and sustainability challenges we face. I'm Matt Orsagh, Chief Content Officer at ED4S. And I’m Nawar Alsaadi, Founder and CEO of Kanata Advisors and Senior Advisor to ED4S. Today, we’re excited to bring you a thought-provoking conversation with someone we’ve been fortunate to know for many years: Jon Lukomnik. Jon has had a distinguished career in the financial world. He’s a former investment advisor for New York City’s pension fund, co-founder of the International Corporate Governance Network (ICGN), and an adjunct professor and Brennenmeyer Fellow at Columbia University. He’s also the co-author of several books on corporate governance and finance, including his latest: Moving Beyond Modern Portfolio Theory, which we’ll dive into today. Jon, welcome to the podcast! Jon Lukomnik: Thank you! It’s a pleasure to be here. The Limitations of Modern Portfolio Theory (MPT) Matt Orsagh: Let’s start with your 2021 book, Moving Beyond Modern Portfolio Theory, co-authored with James Hawley. In it, you discuss the limitations of MPT in addressing long-term systemic risks like climate change. Could you elaborate on these limitations? Jon Lukomnik: Certainly. While MPT is a powerful tool for constructing portfolios with the best risk-adjusted returns based on existing market data, it has critical limitations. First, it assumes market levels are exogenous, meaning it doesn't account for the factors that influence the overall health of the market, such as systemic risks. Studies show that 75% to 94% of variability in total returns comes from the general price level of the market—something MPT doesn’t address. Second, MPT focuses on idiosyncratic risks—risks specific to individual securities or sectors—and manages them through diversification. However, it does not address systemic risks, like climate change or inequality, which affect the entire market. Lastly, MPT's reliance on historical data and static assumptions can disconnect it from the real-world dynamics that drive long-term value and risk. As a result, it falls short in guiding investors on how to address risks and opportunities arising from systemic changes. Introducing System-Level Investing Nawar Alsaadi: Building on that, Jon, it seems like MPT encourages investors to focus on what they can control, even though what they can’t control—systemic risks—has a far greater impact on portfolio performance. This leads us to system-level investing. How does it differ from traditional approaches, and why is it essential for tackling risks like climate change or inequality? Jon: That’s a great question. System-level investing differs fundamentally from traditional approaches in its focus. Traditional investing, as framed by MPT, focuses on relative performance—comparing investments against the market or peers. In contrast, system-level investing looks at the broader picture, aiming to improve the overall health and performance of the market by mitigating systemic risks. For example, climate change is a systemic risk that cannot be diversified away. It creates systemic vulnerabilities that ripple through the economy and financial markets. System-level investors recognize that addressing these risks in the real world—through stewardship, policy engagement, or collaborative action—can reduce systemic risks and improve portfolio performance over the long term. System-level investing complements MPT by first addressing the underlying health of the market and then applying MPT’s tools to construct portfolios within a more stable and resilient market environment. Practical Steps for System-Level Investing Matt: This is fascinating. Could you share some practical steps for investors looking to incorporate systemic thinking into their portfolios? Are there specific tools or frameworks available? Jon: Certainly. Here are some key steps and tools: Enhancing Existing Practices: Stewardship: Move beyond company-specific issues to engage on system-wide challenges. For instance, participate in initiatives like Climate Action 100+ to drive collective action. Thematic Investments: Focus on areas like renewable energy, green infrastructure, or climate solutions that align with system-level goals. Policy Engagement: Work with policymakers to support regulations that mitigate systemic risks, such as carbon pricing or sustainability disclosure requirements. Setting Goals and Boundaries: Define clear investment beliefs that incorporate systemic risks. For example, PGGM, a Dutch pension fund, has adopted a “3D” approach: risk, return, and impact. Align compensation structures with long-term, system-wide outcomes rather than short-term /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/33897592

Episode 14: Stranded Assets 10/15/2024

Episode 14: Stranded Assets Hosts: Matt Orsagh, Chief Content Officer at ED4S Nawar Alsaadi, CEO of Kanata Advisors, Chief Advisor at ED4S Guest: Natasha Chaudhary, Research Fellow at The Institute for Climate Economics (I4CE) Episode Focus: The concept of stranded assets and a shift toward "assets at risk" to better support financial institutions in navigating climate-related financial risks. Key Takeaways: Stranded Assets Explained: Traditionally associated with fossil fuels, stranded assets refer to devalued resources due to regulatory, market, or physical climate changes. Current definitions often focus on oil, gas, and coal sectors, but the concept can apply across industries. Reframing to "Assets at Risk": Natasha advocates shifting from "stranded assets" to "assets at risk," broadening the focus to include potential asset value losses across all sectors under transition pressures. This proactive approach allows financial institutions to better anticipate risks and guide capital toward sustainable investments. Proactive Risk Management: "Assets at risk" encourages financial institutions to manage risks dynamically, considering the entire value chain and transition readiness of companies, thereby supporting real-economy decarbonization rather than simply divesting from risky sectors. Sectoral Examples Beyond Fossil Fuels: Key sectors such as real estate, agriculture, and automotive also face significant risks. For example, the EU’s building regulations for decarbonization by 2050 and the upcoming ban on internal combustion engines by 2035 present immediate risks to financial portfolios. The Need for Regulatory Guidance: Clear regulatory frameworks and standardized transition plans are essential to accurately assess transition readiness across sectors, helping institutions manage climate risks effectively. Conclusion: This episode emphasizes the importance of expanding the stranded assets framework to support proactive and comprehensive risk management across sectors, highlighting the role of financial institutions in driving climate-aligned investments. --------- Transcript: Welcome to the Sustainability in Motion Podcast! Hello, everyone! Welcome to the Sustainability in Motion podcast, brought to you by ED4S. Here, we focus on the rapidly evolving world of sustainability, helping the business community navigate environmental challenges and opportunities. I'm Matt Orsagh, Chief Content Officer at ED4S. And I'm Nawar Alsaadi, Founder and CEO of Kanata Advisors and Senior Advisor to ED4S. Today, we’re thrilled to be speaking with Natasha Chaudhary, a Research Fellow at the Institute for Climate Economics, also known as I4CE. Natasha recently authored the paper From Stranded Assets to Assets at Risk: Reframing the Narrative for European Private Financial Institutions. This paper takes a deep dive into the concept of stranded assets, a topic many of us have encountered but might not fully understand. Welcome to the podcast, Natasha! Natasha Chaudhary: Thank you for having me! Matt Orsagh: Let’s start by level-setting. Most of our audience has likely heard of stranded assets, but could you explain the concept as it’s used today? Where does it come from, and how is it applied? Understanding Stranded Assets Natasha: Certainly! Theoretically, the idea of stranded assets has been around for quite some time. However, it gained practical traction about a decade ago, particularly between 2012 and 2014, when pioneering research at the University of Oxford began to spotlight the issue. The concept became especially relevant due to its link with the fossil fuel industry and global warming. Essentially, stranded assets are resources—such as oil, gas, or coal reserves—that can no longer be extracted, used, or sold due to external changes. These changes might be regulatory, such as a ban on fossil fuel extraction, or economic, driven by market shifts. One critical idea underpinning this is the "carbon bubble," which suggests that a significant portion of fossil fuel reserves currently listed as assets by oil and gas companies may lose their value as we transition to a low-carbon economy. The issue arises because these risks are often not fully reflected in current valuations, creating a bubble. Organizations like the Carbon Tracker Initiative have explored these risks extensively, categorizing them into three types: Regulatory stranding – driven by strict policies or bans. Physical stranding – resulting from climate events like floods or droughts. Economic stranding – caused by market changes, such as declining demand or cost inefficiencies. Expanding the Lens: Assets at Risk Nawar Alsaadi: In your paper, you argue that the concept of stranded assets is too narrow, particularly when applied to financial institutions. You propose a broader framework—assets at risk. Could you elaborate on this and explain why you think it’s a better framing? Natasha: Of course. The traditional understanding of stranded assets is heavily tied to the fossil fuel sector and focuses on quantifying losses. While this is important, it misses the broader picture. Stranding risk isn’t exclusive to fossil fuels; it can affect any sector undergoing significant decarbonization pressures. The concept of assets at risk broadens this perspective. It acknowledges transition-driven risks across various sectors, supply chains, and financial portfolios. Instead of being reactive, it promotes proactive engagement. Financial institutions can anticipate potential risks, identify assets at risk within their portfolios, and work collaboratively with entities to mitigate these risks. This approach shifts the focus from risk avoidance to opportunity creation. By enabling financial institutions to engage with businesses and governments, they can drive the transition from "brown to green" through strategic financing and innovation. Proactive Risk Management in Practice Matt: You touched on this earlier, but could you delve into what a proactive, dynamic approach to managing assets at risk looks like in practice? Do financial institutions have the capacity to implement this today? Natasha: Great question. Financial institutions already have many tools at their disposal, such as sectoral financing policies and climate-related stress testing. However, these tools need to be more comprehensive and inclusive of non-project-based financing, which represents a significant portion of financial portfolios. Proactive risk management involves: Broadening sectoral policies – ensuring they encompass all financing activities, not just project-related ones. Enhanced risk assessments – evaluating the financial soundness and transition readiness of counterparties. Whole-of-economy lens – assessing risks across all sectors, supply chains, and transition timelines. For example, in the real estate sector, energy performance certificates (EPCs) provide insight into building efficiency and potential stranding risks. In agriculture, outdated infrastructure may become stranded as regulatory pressures grow. By identifying assets at risk early, financial institutions can actively work with stakeholders to retrofit, repurpose, or retire assets in a managed and efficient way. Quantifying the Magnitude and Timelines Nawar: What’s the scale of this problem beyond oil and gas? Do we have any sense of its magnitude, and are we looking at near-term or long-term impacts? Natasha: Quantifying the magnitude is challenging due to uncertainties and varying methodologies. Even within the fossil fuel sector, estimates of stranded assets range from $1 trillion to $185 trillion, depending on assumptions about transition speed and policy actions. However, we can gain insights from related metrics. For instance, the European Central Bank's stress test revealed that 40% of Euro-area bank loan portfolios are exposed to energy-intensive sectors, highlighting the scale of potential risks. As for timelines, risks are both near-term and long-term. For instance, the EU's Energy Performance of Buildings Directive targets a fully decarbonized building stock by 2050, with significant milestones along the way. Similarly, the automobile sector faces a 2035 deadline for phasing out internal combustion engine vehicles. Final Thoughts: Regulatory Reform Matt: If you had a magic wand to propose one regulatory reform to address assets at risk, what would it be? Natasha: It would be establishing clear regulatory guidelines for assessing the transition readiness of counterparties. This would standardize how financial institutions evaluate risks and align their portfolios with decarbonization goals. By providing clear parameters and expectations, regulators could help banks better assess transition risks and identify opportunities to support a just and efficient transition. Matt: Natasha, this has been a fantastic conversation. Your paper is a must-read for anyone in the financial sector. Nawar: Agreed. Thank you for joining us, Natasha. For our listeners, you can find more about ED4S at . If you’d like to connect with Natasha, Matt, or me, we’re all active on LinkedIn. Thanks for tuning in! /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/33457322

Episode 13: Operationalizing Sustainability in the Financial Sector 10/01/2024

Episode 13: Operationalizing Sustainability in the Financial Sector Hosts: Matt Orsagh, Chief Content Officer at ED4S Maria Maisuradze, Founder and CEO of ED4S Nawar Alsaadi, CEO of Kanata Advisors, Senior Advisor to ED4S Episode Focus: A discussion on ED4S’s new paper, “Operationalizing Sustainability: Eight Key Roles in Finance,” which offers practical guidance for embedding sustainability in financial roles. Key Takeaways: Purpose of the Paper: This paper addresses how financial professionals can operationalize sustainability in their day-to-day roles. As organizations mature in ESG, there is a need to integrate sustainability practices within various job functions. Roles Covered: The eight key roles analyzed include: Commercial Lending Representative, Communication Specialist, Financial Advisor, Investment Analyst, Portfolio Manager, Procurement Specialist, Risk Manager, and Software Developer. Challenges and Insights: Integrating ESG into distinct financial roles is challenging due to the varied nature of each job and the need for organization-wide cultural support. Cross-departmental collaboration is essential for ESG success, requiring buy-in from leadership. Structure of Each Role Profile: Each role section includes an overview, essential skills, relevant ESG resources, practical case studies, and a suggested workflow, tailored to help professionals integrate ESG seamlessly. Future of ESG in Finance: As ESG regulations and standards evolve, ESG integration will likely become a routine part of financial roles, reducing the need for specialized guides. Increased systems-level thinking and technology integration are expected to play critical roles in this evolution. Conclusion: This episode highlights the importance of ESG knowledge across financial roles and the need for practical, role-specific guidance. The paper aims to equip financial professionals with actionable steps to embed sustainability in their daily responsibilities. --- To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment. _______________ Transcript: Hello, everyone, and welcome to the Sustainability in Motion podcast, brought to you by ED4S. We focus on the rapidly evolving world of sustainability to help the business community better understand and address environmental challenges. I’m Matt Orsagh, Chief Content Officer at ED4S. Maria Maisuradze: Hi, everyone! I’m Maria Maisuradze, Founder and CEO at ED4S. Nawar Alsaadi: Hello, I’m Nawar Alsaadi, Founder and CEO of Kanata Advisors and Senior Advisor to ED4S. Matt: Today, we’re doing something a little different—we’ll be our own guests! We’re diving into our recent paper, Operational Sustainability: Eight Role Sheets in Finance. This paper explores what sustainability looks like in practice and how different roles within financial institutions can integrate ESG into their workflows. So let’s jump right in and discuss why we wrote this paper, why we believe it’s essential for financial institutions to integrate ESG into traditional roles, and, most importantly, how to do that. Maria, would you like to get us started? The Journey to ESG Role Integration Maria: Sure! This paper is part of the journey we’ve been on since founding ED4S in 2020. Initially, the market was less mature, and most of our focus was on onboarding organizations to the basics of sustainability. We helped financial institutions build a common understanding of what ESG is—and isn’t—while exploring risks, opportunities, and investor demand. Fast forward to today, and we’ve seen substantial progress. Many organizations now have a baseline understanding of sustainability. However, the question has evolved: How do individuals within various roles operationalize ESG in their day-to-day work? That’s where we saw an opportunity to empower individuals. Not everyone has the bandwidth to take on extra responsibilities, but we wanted to show how sustainability can seamlessly integrate into existing workflows. Our goal was to create actionable, accessible tools—concise role sheets rather than lengthy reports—to help financial professionals lead and grow in their careers while embedding sustainability practices. Why This Paper is Unique Matt: That’s such a great point, Maria. I wish something like this existed 10 or 15 years ago when I first started in ESG. People often ask, “How do I apply ESG as an analyst, a portfolio manager, or even a software developer?” While there’s plenty of general guidance on ESG integration, this paper takes a unique approach by linking ESG directly to the daily workflows of specific financial roles. Nawar: Exactly. I’ve never seen a paper like this before. Most resources in this space focus on broad concepts, but our paper bridges the gap between high-level ESG principles and the practical, day-to-day tasks of financial professionals. Maria: That’s true. While there are some resources out there—for example, on integrating climate considerations into certain roles—they often lack the practical perspective needed for financial institutions. Having worked in finance, I could see that many of these guides were written without a deep understanding of the sector’s mechanics. Our aim was to address that gap with actionable insights tailored to finance professionals. Roles Covered in the Paper Matt: Let’s talk about the eight roles we covered and the reasoning behind them. We included: Commercial Lending Representatives Communication Specialists Financial Advisors Investment Analysts Portfolio Managers Procurement Specialists Risk Managers Software Developers We initially considered 10 roles but decided to set aside HR and accounting for now, as those areas are more complex and require additional research. Maria: Exactly. HR, for instance, encompasses various responsibilities—from recruitment to employee well-being to incentive structures. Similarly, accounting includes roles in reporting and reconciliation. These roles are crucial, but tackling them would have required a deeper dive, which we hope to do in the future. Challenges in ESG Integration Matt: One challenge we faced was the sheer diversity of roles. For example, analysts and portfolio managers share similarities, while communication specialists and software developers operate in completely different worlds. Synthesizing relevant insights without overwhelming readers was a key challenge. Maria: Another challenge was drawing boundaries. Roles like commercial lending often intersect with others, such as compliance and risk management. Tracing these lines required tough decisions, but collaboration with industry professionals helped us navigate these complexities. Nawar: I agree. One of the biggest challenges is ensuring this doesn’t become a box-ticking exercise. Integrating ESG into workflows requires judgment, collaboration, and motivation—factors we couldn’t fully capture in the paper. Additionally, institutions must invest in resources, such as data and tools, to enable their employees to succeed. Highlighting Key Roles Matt: Let’s share some examples from the paper. I’ll start with the Communication Specialist role, which stood out to me because it’s often overlooked in ESG discussions. Marketing and communication teams play a critical role in shaping a firm’s ESG narrative. If they lack the necessary training, there’s a risk of greenwashing—or even greenhushing. This role sheet provides practical steps for communication specialists to align messaging with ESG principles while collaborating with compliance teams to navigate regional nuances. Maria: I’ll highlight the Commercial Lending Representative role. The business case here is clear: as regulations like carbon taxes increase and clients face pressure to decarbonize, lending reps can engage clients intelligently on transition opportunities. By understanding sustainability-linked loans and subsidies, they can drive efficiency, strengthen client relationships, and create new business opportunities. Nawar: For me, it’s the Portfolio Manager role. One key skill we emphasize is systems-level thinking—understanding the interplay between portfolio components and external systemic risks. ESG integration isn’t a one-step process; it’s distributed across the workflow. Portfolio managers must collaborate with analysts and other stakeholders to address risks and opportunities holistically. The Future of ESG Integration Matt: Looking ahead, what does the future hold for ESG integration in finance? Maria: I see deeper embedding of ESG across roles as regulations, standards, and sustainable products mature. Technology will play a bigger role, with software developers driving innovation in circular economy solutions and resource-sharing platforms. Financial institutions will increasingly act as connectors, creating value beyond transactions. Nawar: My hope is that in five to ten years, a paper like this will be redundant because ESG will be fully integrated into all roles as a matter of course. However, the shift requires cultural alignment and the right incentives, which are still evolving. Matt: I think systems-level thinking will become more prevalent across all roles. Financial professionals will move beyond siloed approaches to understand how their actions impact—and are impacted by—broader systems. Books like Thinking in Systems by Donella Meadows and 21st Century Investing by William Burkhart and Steve Lydenberg provide excellent frameworks for this shift. Final Thoughts Maria: I’d like to thank everyone who contributed to this paper. Their insights were invaluable in shaping a practical and impactful resource. Nawar: Yes, a huge thank you to all the contributors—you know who you are! And for those listening, please read the paper and share your feedback. We’d love to hear how we can improve and address additional roles in the future. Matt: You can connect with us on LinkedIn or through . Thanks for joining us, and we’ll see you next time! /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/33263197

Episode 12: The Sustainable Stock Exchanges Initiative 09/10/2024

Episode 12: The Sustainable Stock Exchanges Initiative Sustainability in Motion Podcast – Episode: Sustainable Stock Exchanges Initiative Hosts: Matt Orsagh, Chief Content Officer at ED4S Maria Maisuradze, Founder and CEO at ED4S Guests: Tiffany Grabski, Head of SSE Academy Anthony Miller, Coordinator of the Sustainable Stock Exchange (SSE) Initiative Episode Focus: This episode explores the Sustainable Stock Exchanges (SSE) initiative’s role in advancing sustainable finance and how the SSE Academy supports education and training in sustainability for exchanges and market participants globally. Key Takeaways: Overview of SSE and SSE Academy Launched in 2009 by the UN, the SSE works with over 130 stock exchanges worldwide to promote sustainable finance. The SSE Academy provides free market education to help exchanges and market participants understand and implement sustainability practices. Mandatory ESG Disclosure and Reporting Trends There is a global trend towards mandatory ESG disclosure, with 38 markets now requiring sustainability reporting. Many exchanges align their requirements with standards like IFRS, GRI, and the European Sustainability Reporting Standards (ESRS), streamlining ESG reporting globally. Consolidation and Alignment of Standards The IFRS Foundation’s integration of climate and sustainability reporting standards helps companies reduce the “alphabet soup” of ESG requirements. This consolidation supports global alignment, enabling companies to navigate sustainability reporting more effectively. The Role of Exchanges in Capacity Building Stock exchanges are uniquely positioned to promote sustainable practices through market education. The SSE Academy has trained over 30,000 participants globally, helping exchanges meet sustainability demands without additional costs. Challenges and Opportunities in Listing While listing is complex and resource-intensive, exchanges provide guidance to help companies meet ESG expectations. The SSE offers tools and guidance on ESG best practices, benefiting listed and private companies that engage with listed entities. Conclusion: The SSE initiative plays a crucial role in advancing sustainable finance by building capacity, aligning standards, and reducing barriers to ESG compliance, helping stock exchanges worldwide to promote sustainable practices effectively. ____________ Welcome to the Sustainability in Motion Podcast! Matt Orsagh: Hey, everyone! Welcome to the Sustainability in Motion podcast, brought to you by ED4S. We focus on the fast-moving world of sustainability to help the business community better understand and address the environmental challenges we face. I’m Matt Orsagh, Chief Content Officer at ED4S. Maria Maisuradze: Hi, everyone! I’m Maria Maisuradze, Founder and CEO of ED4S. It’s great to be with you today. Matt: Today, we’re talking with Tiffany Grabski, Head of the SSE Academy, and Anthony Miller, Coordinator of the Sustainable Stock Exchanges (SSE) Initiative. We’ll discuss the work of the SSE and its Academy in promoting sustainable development. Tiffany, Anthony, welcome to the podcast! Anthony Miller: Thanks for having us, Matt. Tiffany Grabski: Great to be here! What is the SSE and SSE Academy? Matt: To kick things off, can you explain what the SSE and the SSE Academy are, and how they promote sustainable development? Anthony: Sure, Matt. The Sustainable Stock Exchanges (SSE) Initiative was launched in 2009 by the UN Secretary-General. Think of it as a sibling initiative to others like the UN Global Compact, which works with companies, the Principles for Responsible Investment (PRI) with asset managers, and UNEP FI with banks and insurers. Stock exchanges didn’t fit into any of these categories, so the SSE was created to fill that gap. The SSE is a partnership program involving the Global Compact, PRI, and UNEP FI. We work with stock exchanges because they occupy a unique position in the market, sitting at the intersection of issuers, investors, regulators, and standard-setters. This gives them a powerful role in influencing market practices to promote sustainable finance and the UN’s Sustainable Development Goals (SDGs). As for the SSE Academy, it’s our market education arm. Stock exchanges have always provided market education because being a listed company is complex—there are compliance rules, financial accounting standards, and governance requirements to follow. The Academy helps exchanges incorporate sustainability priorities into their existing education programs. With over 130 exchanges in our network, many don’t have in-house expertise on every sustainability issue, particularly in emerging markets. The SSE Academy helps bridge that gap by providing universal, standardized training accessible to all members. Growth of the SSE Initiative Matt: That’s fascinating. You mentioned the SSE started in 2009. How many exchanges were involved at first, and how has it grown? Anthony: We began with just five founding exchanges. Growth was gradual at first but picked up momentum as exchanges recognized the importance of sustainable finance. Today, most of the world’s stock exchanges are SSE members, representing over 100 markets globally. Exchanges are uniquely positioned to respond to societal and market pressures, such as investor demand for sustainable finance products. This demand, combined with exchanges’ willingness to innovate, has driven our expansion. The Role of Stock Exchanges in Promoting ESG Maria: I discovered the SSE Initiative last year and was struck by the critical role stock exchanges play in sustainability. Listing on a stock exchange essentially provides companies with a license to access significant capital. Some exchanges even require ESG disclosures as part of their listing criteria. I read that 38 exchanges globally now mandate ESG disclosure. Could you share more about the types of disclosures required and any trends you’ve observed? Anthony: That’s a great question, Maria. We track mandatory ESG disclosure requirements across our online database, which is the most comprehensive in the world. Ten years ago, very few markets mandated ESG disclosure—today, 38 do. The specifics vary. Earlier rules were more general, asking for sustainability reports without detailed guidelines. Over time, rules have become more precise. For example, the EU now requires disclosures aligned with the European Sustainability Reporting Standards (ESRS), which cover environmental and social issues comprehensively. Globally, there’s a trend toward adopting international standards. The three major frameworks gaining traction are GRI, IFRS S1 and S2, and ESRS. These frameworks are aligning markets worldwide, creating consistency and reducing confusion for companies. Impact of Consolidating Standards Matt: How does the consolidation of standards like IFRS S1 and S2 affect your work at the SSE Academy and the broader markets? Tiffany: Consolidation is a game-changer. Many of these standards aren’t new—they build on existing frameworks like GRI, TCFD, and others. By bringing them together, we’re addressing the long-standing “alphabet soup” problem that left companies unsure where to start. This alignment simplifies reporting and forces internal collaboration within organizations. Sustainability reporting is no longer siloed; it involves multiple departments working together, which enhances the quality and value of the data. At the SSE Academy, we focus on educating market participants about these consolidated standards. This education is critical because compliance isn’t just a regulatory checkbox—it’s about creating real value. Capacity Building Through the SSE Academy Maria: Capacity building is close to our hearts at ED4S. Could you share more about the SSE Academy’s training programs, the topics covered, and who participates? Tiffany: The SSE Academy launched in 2021 in response to demand from exchanges. Our first program focused on TCFD, and since then, we’ve expanded to topics like IFRS S1 and S2, GRI, gender equality, and biodiversity through TNFD. To date, we’ve trained over 30,000 market participants from 145 countries through 160 workshops and nearly 400 hours of training. These workshops are hosted by exchanges and are free for their stakeholders, ensuring accessibility. Challenges for Private Companies and Capacity Building Maria: Many companies stay private to avoid the complexities of listing, and sustainability reporting might seem like an additional burden. Do you think regulations like ESRS, which apply to private and public companies, level the playing field? Tiffany: Absolutely. Whether listed or private, companies are part of value chains that demand sustainability data. Non-compliance could limit market opportunities. Listing remains an excellent way to raise capital and gain protections, especially when disclosures are required by regulation. These regulations provide clarity, reduce greenwashing risks, and encourage transparency. Other Tools Provided by the SSE Matt: What other tools and resources does the SSE offer its members? Anthony: We operate on three pillars: consensus building, research and normative guidance, and technical assistance. Consensus Building: We host high-level CEO roundtables and multi-stakeholder meetings to align exchanges, regulators, investors, and issuers. Normative Guidance: We develop best practice guides on topics like green finance, gender equality, and climate disclosure. Technical Assistance: This includes model guidance templates that exchanges can adapt to their markets. For example, many exchanges start with voluntary ESG guidelines and later transition to mandatory rules. We also track progress through benchmarking and data-driven publications. Our work is demand-driven, based on the real-world needs of exchanges. Matt: That’s incredible work. Tiffany and Anthony, thank you for joining us and sharing such valuable insights. Tiffany: Thanks for having us! Anthony: It was a pleasure. Matt: To our listeners, if you’d like to connect, we’re all available on LinkedIn or through . Thanks for tuning in, and we’ll see you next time! /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/32981092

Episode 11: Are companies ready for the polycrisis? 08/13/2024

Episode 11: Are companies ready for the polycrisis? Sustainability in Motion Podcast - Episode 11: Are companies ready for the polycrisis? In this episode of the Sustainability in Motion Podcast, Matt Orsagh and Maria Maisuradze of ED4S talks with Alice Krogh, founder of arkH3, about corporate systemic leadership, ecological overshoot, and the role of businesses in driving sustainability. arkH3 advocates for a model where companies lead systemic change and embed sustainability into strategy, rather than treating it as a side project. Key Takeaways: Corporate Systemic Leadership: Alice introduces corporate systemic leadership, a form of action where companies take the lead in addressing complex global challenges. This approach goes beyond traditional systems thinking and emphasizes a strategic alignment with sustainability at the core of business. Understanding Ecological Overshoot & Social Undershoot: Alice discusses ecological overshoot as the point where humanity exceeds Earth’s capacity, much like an “overdrawn” bank account, while social undershoot highlights unmet basic needs and rights globally. Both issues stem from a business model prioritizing GDP growth over planetary health. Current State of Business Preparedness: Many companies are underprepared for a sustainable future, often focusing narrowly on climate change rather than broader systemic risks. True readiness requires systemic foresight, holistic strategies, and adaptation to ecological limits. Business as the World Needs: Moving from "business as usual" to "business as the world needs" involves prioritizing essential needs, ecosystem health, and systemic interventions over profit growth. This shift is essential to secure a livable future within planetary boundaries. The Role of Policy and Big Business: Significant systemic change requires both policy reform and corporate leadership. Given limitations in policy implementation, Alice argues that business leaders and investors should advocate for transformative policies and lead by example in driving systemic change. Conclusion: This episode emphasizes the urgent need for corporate systemic leadership and transformative change. It calls on businesses to redefine their roles within society, adapt to ecological realities, and contribute proactively to a sustainable future. For more insights, visit ED4S at . _______________ Transcript: Welcome to the Sustainability in Motion Podcast! Matt Orsagh: Hey, everyone! Welcome to the Sustainability in Motion podcast, brought to you by ED4S. We focus on the fast-moving world of sustainability to help the business community better understand and address the environmental challenges we face. I’m Matt Orsagh, Chief Content Officer at ED4S. Today, I’m pleased to welcome Alice Kroh, founder of ARK3, a corporate systemic leadership platform. We’ll be discussing the state of sustainability, how prepared companies and investors are for the world ahead, and topics like ecological overshoot, social undershoot, and more. Welcome to the podcast, Alice! Alice Kroh: Thank you, Matt. It’s a pleasure to be here. Corporate Systemic Leadership Matt: To start, some listeners might be unfamiliar with the term. What is corporate systemic leadership? Alice: That’s a great question, Matt. Corporate systemic leadership may sound abstract, but I’ll break it down. Many of our listeners are likely familiar with systems thinking, which has been identified as a critical skill for navigating today’s volatile, uncertain, complex, and ambiguous (VUCA) world. It’s also considered essential for sustainability officers and leaders. When you take systems thinking and put it into practice, you get what’s known as systemic action. Now, you may have heard the phrase, “The polycrisis is a leadership crisis,” highlighting the lack of relevant leadership to address today’s complex challenges. In the absence of expected leadership from national governments or supranational bodies, individuals and organizations often self-nominate to initiate and lead systemic action. These are systemic leaders, and what they do is systemic leadership. Corporate systemic leadership, then, is when corporations take on this role of driving systemic change. It’s not just a corporate strategy—it’s about fulfilling fiduciary duties and adapting sustainability to the realities of the 21st-century VUCA world. About ARK3 Matt: That’s a great explanation. Tell us more about what ARK3 does. Alice: At ARK3, everything we do is rooted in our theory of change. Our starting point is that business leaders are uniquely positioned to drive systemic change and lead large-scale sustainability transformations. We also believe it’s not just an opportunity but a business imperative and fiduciary responsibility. Our work is organized into four key verticals: Awareness and Foresight: We act as a think tank, developing thought leadership, tools, and methodologies to drive necessary change. Competence and Capability Building: Through training programs and capacity building, we help leaders and companies create business strategies, models, and value chains that are relevant in a VUCA world. Transformation Consulting: Our consultancy combines sustainability and strategy as a unified discipline, helping clients achieve systemic business transformation. Coalitions and Communities of Practice: We facilitate collaboration among business leaders to model a new role for business in society. Two things set us apart: Systemic Foresight: The ability to see the broader planetary context, anticipate future challenges, and backcast necessary actions. Business Imperative Framing: We communicate the importance of systemic leadership in the language of business, focusing on business imperatives rather than moral appeals. This approach has gained significant traction in the short time we’ve been operating, and we’re optimistic about its potential to contribute meaningfully to a sustainable future. Understanding the Polycrisis Matt: You mentioned the polycrisis earlier. For those unfamiliar, this refers to interconnected crises, including climate change and others identified in the planetary boundaries framework. Can you elaborate on ecological overshoot and social undershoot, and how they’re connected? Alice: Absolutely. Let’s start with ecological overshoot. One way to think about it is like a bank account overdraft. Imagine you’re constantly withdrawing more than you deposit. Eventually, you hit a limit, leading to financial collapse. Similarly, humanity has been exceeding Earth’s carrying capacity since the 1970s, depleting natural resources faster than they can regenerate. This has led to accumulated damage in natural systems, which will eventually result in ecosystem collapse and diminished quality of life. Social undershoot, on the other hand, refers to our failure to meet essential human needs and rights on a global scale. It’s the counterpart to overshoot in Kate Raworth’s Doughnut Economics framework, where the inner ring represents social foundations. Falling below this means unmet basic needs, while exceeding the outer ring (ecological boundaries) represents overshoot. The two are interconnected because they stem from the same economic system, which prioritizes GDP and profit growth over environmental and social well-being. Addressing either requires systemic change. Preparedness for the Future Matt: In light of these challenges, how prepared are companies and investors for the world ahead? Alice: In short, they’re not prepared. Many are aware of their lack of preparedness but don’t know how to address it. A key issue is the absence of systemic foresight. Most corporate strategies fail to consider the broader planetary context. Disruptions are often viewed narrowly—through competition, technology, or regulation—ignoring the looming effects of ecological collapse. Even progressive companies with advanced ESG practices struggle to operationalize frameworks like the planetary boundaries meaningfully. Without systemic foresight, corporate strategies are destined to fail, and sustainability agendas become inconsequential. Investors are similarly under-informed, which is reflected in their lack of demand for meaningful metrics and actions. Defining Business as the World Needs Matt: You advocate for moving from “business as usual” to “business as the world needs.” What does that look like? Alice: “Business as the world needs” involves two main criteria: Delivering What the World Needs: Businesses must address essential needs or solve real-world problems while causing minimal harm. They should operate within planetary boundaries and adapt to a diminished planetary budget by 2030. Driving Systemic Change: Companies must actively lead systemic change, either individually or in collaboration with others, to address root causes of ecological overshoot and social undershoot. This departs from traditional sustainability approaches, which often emphasize incremental improvements or fair-share contributions. The Role of Policy Matt: What policy changes are needed to support this transition? Alice: Many necessary policies, such as financial reforms, debt cancellation, and phasing out non-essential industries, have been proposed but remain unimplemented. However, relying on democratic processes to enact these changes in time is unrealistic. Corporate interests heavily influence policy agendas, which makes systemic change unlikely without a shift in business priorities. Big business has a unique capability to drive systemic change. If a significant cohort of business leaders advocates for these policies, they could become a reality. The Path Forward Matt: How do we transition to a society with lower consumption and energy use, and how do we address the cultural changes required? Alice: The exact path is uncertain, given the complexity of global systems. However, the most realistic starting point is a cohort of business leaders and investors leveraging their influence to drive systemic change. This requires enlightened self-interest, systemic foresight, and collaboration. At ARK3, we’ve developed tools and methodologies to support businesses in this transition. We invite others to engage with our work and join us in creating a sustainable future. Matt: Alice, thank you for such an insightful conversation. Your work is inspiring, and I hope more companies take the necessary steps to lead systemic change. Alice: Thank you, Matt. It’s been a pleasure. Matt: To our listeners, if you’d like to connect with us, we’re on LinkedIn and social media. For more on ED4S, visit . Thanks for tuning in, and we’ll see you next time! /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/32553182

Episode 10: The Corporate Sustainability Reporting Directive 07/16/2024

Episode 10: The Corporate Sustainability Reporting Directive Sustainability in Motion Podcast –Episode 10: The Corporate Sustainability Reporting Directive Hosts: Matt Orsagh, Chief Content Officer at ED4S Nawar Alsaadi, Founder and CEO of Kanata Advisors and Chief Adviser to ED4S Guest: Erin Knowles, Manager at Position Green Episode Overview: In this episode, Matt and Nawar discuss the EU’s Corporate Sustainability Reporting Directive (CSRD) with Erin Nolles from Position Green, diving into what it means for companies inside and outside of the EU, and the preparation necessary for compliance. Erin provides insights on Position Green’s approach to helping companies align with these new, rigorous reporting standards, sharing Position Green’s own journey in navigating CSRD. Key Takeaways: What is CSRD? The CSRD replaces the Non-Financial Reporting Directive (NFRD), with expanded requirements for sustainability reporting that must be integrated alongside financial disclosures. This regulation applies to EU-based companies and international companies with substantial EU business, marking a transformative shift to align sustainability reporting on par with financial reporting. Double Materiality as a Core Principle: A unique feature of CSRD is the double materiality assessment, which requires companies to evaluate both the financial impacts of sustainability issues and their environmental and social impacts. This ensures companies report on their outward sustainability impacts alongside financial risks they face due to sustainability factors. Preparation and Timelines: CSRD compliance will be phased in over several years, with some non-EU companies affected by 2028-2029. Erin stresses the importance of starting early to manage the extensive data collection and stakeholder engagement processes required. Position Green recommends companies perform a “foundational report” ahead of formal compliance deadlines to identify gaps and prepare for required external assurance. Implications for Global Companies and Investors: Companies outside the EU may still be affected if they are part of the value chain for EU-based companies. Additionally, investors benefit as CSRD aims to create more consistent, comparable sustainability data, reducing “greenwashing” and providing credible data for investment decisions. Position Green’s Approach and Resources: Position Green combines consulting and software to streamline CSRD compliance, providing tools to track and organize sustainability metrics effectively. The company has also published resources, guides, and webinars to assist companies in understanding and preparing for CSRD’s requirements. Conclusion: This episode underscores the need for companies to prioritize CSRD preparation, starting with a robust double materiality assessment and engagement across their organizations. By tackling this early, companies can ensure compliance and set themselves up for more sustainable and transparent operations that align with growing investor expectations. _________________ Transcript: Welcome to the Sustainability in Motion Podcast, brought to you by ED4S. We focus on the fast-moving sustainability world to help the business community better understand the sustainability and environmental challenges we face. I'm Matt Orsagh, Chief Content Officer at ED4S. And I'm Nawar Alsaadi, Founder and CEO of Kanata Advisors and Chief Advisor to ED4S. Today, we're going to be talking about the Corporate Sustainability Reporting Directive (CSRD). If you're a company that has to comply with CSRD, a shiver might have just gone up your spine—but we hope we can help with that! We'll be speaking with Erin Knowles, Manager at Position Green, which advises companies and helps them navigate the sustainability landscape. Many of their clients will need support with CSRD compliance. Matt: Thanks, Erin, for talking to us today. Let's begin by setting the scene: What is the CSRD? Broadly, what does it cover, and how did we get here? Could you give us a little history? Erin: Of course! The Corporate Sustainability Reporting Directive (CSRD) replaces the Non-Financial Reporting Directive (NFRD). The NFRD, introduced in 2014, laid the foundation for enhancing transparency in sustainability within the EU. Over the years, this evolved, and in 2021, the CSRD was officially introduced after rounds of feedback and reviews. It came into force in January 2023. In essence, the CSRD sets requirements for annual sustainability reporting for companies in the EU or those with significant business dealings in the region. A key difference from the NFRD is that the CSRD mandates integrated reporting of the financial effects of sustainability matters, transforming how businesses handle and communicate impacts, risks, and opportunities. For the first time, sustainability information is being reported on par with financial reporting. Nawar: That’s a significant shift. Erin, can you delve deeper into the specifics of the CSRD? How complex is it, and what exactly do companies need to report on? Erin: The CSRD includes general requirements and topic-specific standards across environmental, social, and governance (ESG) categories. It’s industry-agnostic, so companies must conduct a double materiality assessment to determine what is most relevant for reporting. Double materiality assesses both: The company's impact on people and the planet (inside-out materiality). Financial effects from issues like climate change or human rights concerns (outside-in materiality). This approach provides a methodology for linking sustainability issues to financial value, transforming reporting practices. Matt: What are the timelines and deadlines for companies, and what advice would you give to those preparing for compliance? Erin: Time is your best ally. Our Position Green ESG100 report last year revealed that even in sustainability-leading regions like Scandinavia, companies were severely underprepared—only 54% of disclosures were met, on average. My advice: start early. Conduct foundational assessments and advocate for resources within your organization. The CSRD process requires a lot of time, cross-departmental collaboration, and preparation. Nawar: It seems companies outside of Europe are also impacted. How does CSRD affect non-EU companies, and what role do investors play in this ecosystem? Erin: Non-EU companies might still fall under CSRD if they meet thresholds like revenue or operations within the EU. Additionally, businesses within global value chains might need to respond to stakeholder requests for data. For investors, CSRD provides enhanced reporting to make more informed decisions. It aims to standardize and audit sustainability data, moving away from “wishy-washy” claims and ensuring reliability. Matt: Speaking of preparation, Position Green decided to conduct its own CSRD exercise, even though you’re not required to. What did you learn, and how has it helped your work with clients? Erin: We wanted to lead by example. The process involved the entire organization—over 200 people contributed data like commuting and travel information. The report shifted our organizational mindset, fostering greater accountability and engagement across teams. It underscored the importance of specificity and data-driven reporting, focusing on measurable impacts and alignment with core business strategies. Matt: That’s inspiring. Before we wrap up, could you share more about your role at Position Green and how you assist companies with CSRD compliance? Erin: My work centers on double materiality assessments and sustainability reporting. Position Green combines consulting with software solutions to streamline the reporting process, breaking it into manageable steps. We also provide resources like webinars, guides, and public insights to support sustainability professionals. Our goal is to make CSRD compliance as accessible and effective as possible. Matt: Thank you, Erin, for sharing your expertise. And thanks to our listeners for tuning in! For more insights, visit ed4s.org or follow us on social media. Take care! /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/32154967

Episode 09: ESG from a Legal Perspective 06/18/2024

Episode 09: ESG from a Legal Perspective Sustainability in Motion Podcast – Episode 09: ESG from a Legal Perspective Hosts: Matt Orsagh, Chief Content Officer at ED4S Nawar Alsaadi, Founder and CEO of Kanata Advisors and Chief Adviser to ED4S Guest: Christine Uri, Founder of ESG for In-House Counsel Episode Overview: In this episode, Matt and Nawar are joined by Christine Uri, founder of ESG for In-House Counsel, to explore the role of legal teams in managing ESG risks and opportunities. Christine discusses the evolving ESG landscape, including the growing importance of compliance, managing climate litigation, and strategies for building sustainable, legally compliant programs. Key Takeaways: Complexity of ESG Reporting and Compliance: ESG reporting has evolved from a response to investor interest to an essential compliance exercise, especially with regulatory frameworks like the EU’s Corporate Sustainability Reporting Directive (CSRD). Christine emphasizes the struggle companies face in meeting vast reporting requirements and how in-house legal teams play a pivotal role in ensuring compliance and avoiding greenwashing risks. Optimal Placement of ESG Functions in Companies: ESG functions can reside in various departments, such as finance, legal, or sustainability. Christine highlights the importance of cross-functional collaboration and executive alignment, noting that the optimal setup often depends on company size and leadership dynamics. Increasingly, legal teams are involved due to regulatory complexities. Minimum Viable Reporting Concept: Christine advocates for “minimum viable reporting,” especially for mid-sized companies overwhelmed by exhaustive reporting standards. This approach allows companies to provide essential ESG information in a focused, repeatable way that meets stakeholder needs without extensive resources. Rise of Climate and Environmental Litigation: Climate litigation is on the rise, with activists targeting specific industries and practices. Christine advises companies to be cautious with public ESG statements and implement rigorous review processes to avoid legal exposure and reputational risk. Future Trends – Biodiversity and Global Standardization: Christine forecasts that biodiversity and natural capital will soon become focal points in ESG, with regulatory standards following in a few years. She also compares ESG reporting’s global spread to the GDPR privacy regulations, indicating that standard ESG practices may soon become a global business norm. Conclusion: This episode underscores the need for companies to integrate ESG into core business practices, prepare for heightened scrutiny, and focus on strategic, actionable reporting. Legal teams are essential in steering sustainable, compliant ESG programs that safeguard both the company’s reputation and its future regulatory standing. _________________________ Transcript: Here’s a polished rewrite of your transcription: Welcome to the Sustainability in Motion podcast, brought to you by ED4S. Our focus is on the fast-evolving world of sustainability, helping the business community understand and address environmental and social challenges. I’m Matt Orsagh, Chief Content Officer at ED4S. And I’m Nawar Alsaadi, Founder and CEO of Kanata Advisors, as well as Chief Adviser to ED4S. Today, we’ll be exploring ESG from a legal perspective, focusing on training in-house counsel and boards to manage ESG risks and seize opportunities. Joining us is Christine Uri, Founder of ESG for In-House Counsel. Matt: Christine, thanks for being here. Christine: My pleasure, Matt. I’m excited to discuss how in-house legal teams are navigating these challenges. Matt: Before diving into the big questions, could you share a bit about your background and journey? Christine: Of course! I’m a lawyer with 20 years of experience—10 years in a law firm and another 10 in-house at ENGIE, a major energy company. While there, I served as Chief Legal Officer and Chief Sustainability Officer, covering areas like carbon, water, waste, human rights, and ethics. In 2020, I launched my own venture, advising general counsels on ESG strategies that align with client and investor expectations. Matt: That’s quite a succinct bio—you may win the award for brevity! Christine: (Laughs) Well, the audience isn’t here to hear about me. Matt: True! Let’s dive in. There’s often a tension between policymakers demanding more robust sustainability metrics and corporations overwhelmed by reporting requirements. Given your experience, where do you see the balance between these competing demands? Christine: That’s a great question. ESG reporting originated with investors wanting data on non-financial factors—environmental, social, and governance metrics—to guide better investment decisions. Companies responded, but without standardized formats, making comparisons difficult. This is where regulators, particularly in Europe, stepped in. For example, the Corporate Sustainability Reporting Directive (CSRD) imposes comprehensive requirements, covering 13 topics with potentially over 1,000 data points. While this addresses investor needs, it’s far more complex than many anticipated, leaving companies—both those directly subject to the CSRD and their downstream suppliers—struggling to comply. Nawar: Speaking of reporting, sustainability metrics are often managed by different departments—finance, legal, or sustainability—depending on the company. Where do you think ESG reporting should sit? Christine: There’s no universal answer; it varies by company structure and leadership dynamics. However, a dedicated Chief Sustainability Officer (CSO) can be effective, provided they have cross-departmental support to avoid silos. Increasingly, CFOs are taking the lead, given the integration of ESG with financial reporting. From a legal perspective, all legal teams need a baseline awareness of ESG to prevent risks like greenwashing or non-compliance. Some legal departments—about 10-15%—take on leadership roles in ESG, a trend likely to grow with evolving regulations. Matt: Let’s discuss your concept of minimum viable reporting for ESG. Can you elaborate on that? Christine: Sure! For mid-market companies, ESG reporting can feel daunting. Some either avoid it altogether or overextend by producing exhaustive reports they can’t sustain. My approach is to encourage scaled-back, focused reporting—perhaps 10 pages—highlighting key actions, risks, and priorities. This helps companies take ownership of their narrative without being overwhelmed. Nawar: That resonates. Investors often value concise, impactful reporting over glossy, lengthy reports. Christine: Exactly. Effective reporting is about clarity, consistency, and repeatability. Overcomplicating it diverts resources from actual ESG progress. Matt: On the legal front, we’re seeing an uptick in climate litigation. Where do you think this is heading, and how should companies prepare? Christine: Climate litigation is growing as companies disclose more about their environmental commitments. Activist litigants are also becoming more strategic. To mitigate risks, companies should thoroughly vet public statements and establish robust review processes to avoid claims of greenwashing or misrepresentation. Nawar: If you had a magic wand to change one thing in the ESG landscape, what would it be? Christine: I’d wish for companies to universally accept that ESG is non-negotiable—moving past resistance to proactive engagement. Matt: Looking ahead, what trends should companies and investors prepare for? Christine: Two key trends: Nature and biodiversity will become as prominent as climate in ESG discussions. Standards are emerging, and companies should start learning the language now. Sustainability reporting will become standard operating procedure globally, akin to how GDPR reshaped privacy practices. The recently passed Corporate Sustainability Due Diligence Directive (CSDD) will also drive supply chain transparency. Matt: Thanks, Christine. Your insights are invaluable. Christine: Thank you for having me. Matt: That wraps up this episode of Sustainability in Motion. To learn more, visit us at or connect with us on LinkedIn. Take care! /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/31746937

Episode 08: Sustainability Training 05/28/2024

Episode 08: Sustainability Training Sustainability in Motion Podcast – Episode 08: Sustainability Training Hosts: Matt Orsagh, Chief Content Officer at ED4S Maria Maisuradze, CEO at ED4S Guest: Terry Thornton, Founder of Educate Ethos ESG Episode Overview: In this episode, Matt and Maria are joined by Terry Thornton, a seasoned sustainability educator and founder of Educate Ethos ESG. They discuss the importance of sustainability training, the evolving motivations behind it, and how organizations can better equip their employees to meet growing ESG demands. Terry shares insights on how companies can shift from reactive compliance to proactive, impact-driven sustainability strategies. Key Takeaways: Shift from Compliance to Impact: Terry highlights the changing landscape: what began as a compliance checkbox is evolving as more companies recognize the strategic value of sustainability. However, many are still motivated by minimal compliance rather than maximizing ESG impact, leading to ineffective, generalized training. Tailored, Role-Specific Training: To drive real change, sustainability training must be relevant to each role. From IT to finance, employees need context-specific ESG knowledge to see value in the training and to apply it effectively in their daily work. The Business Case for Sustainability Training: Effective ESG training provides ROI through enhanced innovation, cost savings, and reputation management. However, it’s essential that companies track the impact and integrate sustainability into performance metrics to realize these benefits. Integrating Sustainability into Company Culture: Embedding sustainability into company culture, rather than treating it as a separate topic, is crucial. Existing systems like performance evaluations, onboarding, and regular training sessions should incorporate ESG goals to encourage a seamless shift. The Role of AI in Sustainability Training: The rise of generative AI has set new expectations for on-demand, personalized training. Companies must leverage existing tools efficiently and consider AI-driven solutions to keep up with dynamic ESG developments and deliver real-time, relevant content. Conclusion: Sustainability training is essential for navigating today’s evolving ESG demands. Companies need to move beyond compliance, develop role-specific training, and embed ESG into the organizational fabric to create meaningful change. /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/31262717

Episode 07: How well are financial advisors serving client sustainability needs? 05/14/2024

Episode 07: How well are financial advisors serving client sustainability needs? Sustainability in Motion Podcast – Episode 7: How well are financial advisors serving client sustainability needs? Hosts: Matt Orsagh, Chief Content Officer at ED4S Maria Maisuradze, CEO of ED4S Guest: Stephen Kibsey, Analyst, Portfolio Manager, and Lecturer Episode Overview: This episode dives into ED4S’s latest report from a “secret shopper” campaign, evaluating how well financial advisers across Canada handle client interest in sustainable investing. ED4S engaged financial advisers from various firms to understand their readiness to meet clients’ ESG and sustainability goals. Joined by secret shopper Stephen Kibsey, the discussion unpacks the findings, challenges, and potential solutions to improve sustainable investing advice. Key Takeaways: Background and Motivation Maria Maisuradze shares her experience with financial advisers who were dismissive of sustainable investment inquiries, which inspired the secret shopper initiative. Since Canada’s regulations now require ESG factors to be part of the "Know Your Client" process, this study seeks to understand if advisers are integrating these requirements effectively. Study Findings Less than 25% of advisers mentioned ESG or sustainability without prompting, even though surveys indicate strong client demand for these considerations. Once prompted, about 67% of advisers addressed ESG topics, yet only half demonstrated a good understanding of various ESG approaches. Challenges for Advisers High turnover, lack of formalized training, and a disconnect between personal interest and corporate priorities hinder advisers’ ability to fully serve clients seeking ESG investment options. Even advisers with over 10 hours of sustainability training sometimes struggled to effectively guide clients. Importance of Training and Incentives Both Stephen and Maria stress the need for better ESG training and communication. Maria points out that the complexity of fund sheets and inconsistent ESG labeling adds confusion. Additionally, Stephen highlights that financial institutions should invest in ongoing, practical education and tools for advisers. Cultural Shift in Financial Institutions To truly embed sustainability, companies need support from top leadership. A culture that values ESG, starting from the CEO, will drive meaningful change across financial services, aligning firms with long-term sustainability goals. Conclusion: This secret shopper report highlights a clear gap between client demand for sustainable investing and the financial industry’s ability to deliver. Better training, incentives, and alignment from the top down can bridge this gap, ensuring advisers are prepared to meet the growing interest in ESG investing. -- Download the report: ---- To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment. /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/31262667

Episode 06: Sustainability and Proxy Season 04/30/2024

Episode 5: Beyond Box Checking: How to Embed Sustainability in Your Company 04/16/2024

Episode 5: Beyond Box Checking: How to Embed Sustainability in Your Company Sustainability in Motion Podcast – Episode 5: Embedding Sustainability with IBM’s “Beyond Checking the Box” Report Hosts: Matt Orsagh, Chief Content Officer at ED4S Maria Maisuradze, CEO at ED4S Nawar Alsaadi, CEO and Founder of Kanata Advisors, Chief Adviser at ED4S Episode Overview: In this episode, the ED4S team dives into IBM’s “Beyond Checking the Box” report, which explores how companies that embed sustainability into their core business operations and culture see greater profitability and growth. They discuss the importance of operationalizing sustainability and the critical role of corporate culture, training, and data management in achieving sustainability goals. Key Takeaways: Embedding Sustainability Yields Financial Benefits The IBM report reveals that companies integrating sustainability across all operations achieve 52% higher profitability and 16% higher revenue growth than peers. It’s clear that sustainability, when treated as a core business strategy, drives real value and competitive advantage. The Gap Between Strategy and Implementation While 76% of executives acknowledge sustainability’s importance, only 31% have embedded it into their data and operations. This gap highlights the need for sustainability training, goal alignment, and actionable objectives across departments, not just at the executive level. Data Management and Integration Effective sustainability requires robust data infrastructure. The report notes that only 4 in 10 companies have systems in place to gather sustainability data across enterprise systems, underscoring the need for better data tools and cross-functional alignment to make informed sustainability decisions. The Role of Training in Driving Cultural Change Upskilling employees at all levels helps build a sustainability-focused culture. Training enables teams—whether in marketing, finance, or HR—to understand their role in sustainability and align with the company’s broader goals, fostering a holistic approach to sustainability across departments. Sustainability as Good Business, Not a Compliance Exercise Companies that view sustainability as a compliance task miss out on real value. By fostering a sustainability-focused culture and embedding ESG considerations into daily practices, organizations can achieve long-term resilience, improved innovation, and operational efficiency. Conclusion: As IBM’s report illustrates, companies that fully embrace sustainability are more resilient, innovative, and profitable. The journey to embedding sustainability is challenging, but essential for long-term success. For businesses and investors alike, a sustainable strategy is becoming synonymous with good business strategy. --- To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment. /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/30764373

Episode 4: Natural Capital and Biodiversity 04/02/2024

Episode 4: Natural Capital and Biodiversity Hosts: - Matt Orsagh, Chief Content Officer at ED4S - Nawar Alsaadi, CEO of Kanata Advisors, Chief Advisor to ED4S Guest: - Pavan Sukhdev, CEO of GIST Impact, sustainability expert Episode Focus: The economic invisibility of nature, the importance of valuing environmental and social impacts, and the role of companies and regulators in driving sustainability. --- Key Takeaways: 1. Economic Invisibility of Nature: - Pavan highlights the importance of valuing natural and social impacts in corporate decision-making. Despite greater awareness, externalities like clean air, biodiversity, and community health often remain economically invisible, needing urgent policy integration. 2. Shifting Corporate Purpose: - Traditional corporate performance focuses on financial returns to shareholders. Pavan advocates for a four-dimensional performance model, measuring impacts on natural, human, and social capital alongside financials to reflect true corporate value. 3. The Role of Regulations and Policy: - Europe’s CSRD and other global regulatory frameworks are pivotal yet complex. Simplifying and integrating sustainability data into fewer, material indicators could enhance corporate accountability and help policymakers focus on significant social and environmental impacts. 4. GIST’s Mission and Future Goals: - GIST Impact aims to quantify and make visible the economic value of sustainability impacts. Pavan envisions a future where this framework is accessible to the general public, enabling broader understanding and support for sustainable practices. 5. Moving from Conversation to Action: - While sustainability is more discussed today, actual policy and business decisions lag. Pavan stresses the need for a global shift to impact-focused regulations, suggesting that Europe and regions facing environmental challenges lead the way. --- Conclusion: This episode emphasizes the need for transparency and accountability in corporate sustainability, advocating for holistic impact accounting. By integrating sustainability into economic decisions, businesses can align better with societal and environmental needs. --- To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment. /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/30599253

Episode 3: How Investors Use Sustainability Data 03/01/2024

Episode 3: How Investors Use Sustainability Data Hosts: - Matt Orsagh, Chief Content Officer at ED4S - Nawar Alsaadi, CEO and Founder of Kanata Advisors, Chief Advisor to ED4S Episode Focus: Understanding how investors use sustainability (ESG) data and discussing the nuances around financial materiality, investment strategies, and the impact of ESG in today’s investment landscape. --- Key Takeaways: 1. Understanding Financially Material ESG Data: - Financially material data is defined as any ESG data point that impacts financial metrics (e.g., revenue, expenses, net income) and varies by industry. - For example, fuel costs are crucial for airlines, while data privacy is highly relevant for tech companies. 2. Defining Materiality in ESG: - Materiality definitions vary slightly across countries but generally encompass information essential to an informed investor's decision-making process. - Historical context: ESG integration has evolved significantly since the early 2000s, spurred by initiatives like the UN PRI, which sought to standardize ESG data incorporation. 3. How Investors Use ESG Data in Practice: - ESG data supports various investment processes, including product development, security selection, portfolio construction, and risk management. - Investors often tailor ESG use based on their primary goals (e.g., return-focused or impact-driven). 4. Best Practices for Using ESG Data: - Transparency in ESG strategy and data sources is crucial, as is regularly updating the materiality matrix to prioritize relevant data points. - Creating a materiality matrix helps investors and companies clarify what ESG factors matter most within specific industries, improving decision-making. 5. Examples of Material ESG Data for Investors: - Employee Engagement: Studies show that engaged employees contribute to better financial performance, with benefits such as higher sales, profitability, and lower safety incidents. - Retail Example: Comparing employee engagement practices across companies like Costco, Walmart, and Target reveals differences that influence investor preferences and long-term valuation. 6. Fundamental vs. Quantitative Investment Approaches: - Fundamental Investors (Traditional): Use qualitative insights and financial data to assess companies, involving conversations with management and evaluating non-financial factors (like employee satisfaction). - Quant Investors (Data-Driven): Employ models to identify ESG factors affecting large data sets, often favoring empirical data and consistent metrics like turnover rates and pay equity. 7. Impact Investing and ESG Data Use: - While similar to traditional investment processes, impact investing incorporates ESG data points for social/environmental goals even if they don’t enhance returns. - Trade-Offs in Impact Investing: Investors must be transparent about balancing financial returns with impact goals, especially in public markets where shareholder influence is dispersed. 8. The Anti-ESG Movement: - Anti-ESG sentiment has surfaced, largely driven by political motives and skepticism around the integration of non-financial data in investment decisions. - Positive Impact of Scrutiny: This backlash is encouraging companies and investors to be more transparent and committed to authentic ESG integration, potentially weeding out greenwashing practices. - Future Outlook: With 2024 being a significant election year worldwide, ESG-related debates may intensify, but ESG practices grounded in financial performance and value creation are likely to endure. Conclusion: This episode underscores that ESG data, particularly financially material data, is vital in the investment process but is subject to ongoing scrutiny and evolution. The hosts discuss the importance of transparency, industry relevance, and thoughtful application of ESG data to both drive returns and create social/environmental impact. ---- To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment. /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/30191888

Episode 2: ESG Reporting 03/01/2024

Episode 2: ESG Reporting Host: Nawar Alsaadi, Founder and CEO of Kanata Advisors, Chief Advisor at ED4S Guest: Marie-Josée Privyk (MJ), Founder of Fincom Services, ESG Reporting Expert Episode Focus: An in-depth discussion on the evolving landscape of ESG reporting, its importance, challenges, and best practices for companies. --- Key Takeaways: 1. Importance of ESG Reporting: - ESG reporting is vital for meeting stakeholder demands—investors, customers, governments, and employees increasingly want transparency on companies' material environmental, social, and governance issues. - ESG considerations are integral to business management, translating into better risk management and long-term financial performance. 2. Stakeholder Expectations: - Stakeholders are not just investors but can include large customers, local communities, and regulatory bodies. - Reporting on ESG issues helps companies manage risks related to climate, regulations, and reputation, ultimately enhancing valuation and access to capital. 3. Challenges in ESG Reporting: - Maturity Spectrum: Companies vary widely in their ESG maturity. A lack of understanding often leads to delays or “check-the-box” compliance instead of meaningful engagement. - Resource Allocation: Insufficient resources remain a common hurdle. For effective ESG integration, there needs to be more investment in people, technology, and processes. - Misconceptions about Reporting: Treating reporting as a one-time or standalone task, rather than as a continuous and integrated business practice, limits its effectiveness. 4. Best Practices for Effective ESG Reporting: - Standardization and Comparability: Follow a recognized standard for reporting, clearly define scope, context, and performance over time. - Integration with Financial Reporting: Align ESG and financial reports to provide a complete picture of corporate performance. - Clear Communication of Material Issues: Explain why specific ESG issues are relevant and how they impact the business. Setting and tracking targets further enhances credibility. 5. Global ESG Regulation Trends: - Europe is leading with comprehensive initiatives, such as the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS), which set a new standard for mandatory, standardized, audited, and digitized disclosures. - The International Organization of Securities Commissions (IOSCO) and the IFRS Sustainability Disclosure Standards are gaining global traction, with many countries likely to adopt similar frameworks soon. 6. Canadian Regulatory Landscape: - Canada is advancing with federal regulations on climate and labor disclosures. The Canadian Sustainability Standards Board is working on standards aligned with global frameworks, potentially set for implementation by 2026. 7. Future of ESG as a Management Tool: - ESG reporting is not just a compliance exercise; it should serve as a management tool for companies to identify, manage, and measure performance on material ESG issues. - Companies embracing this approach are better positioned to create long-term value and resilience. 8. Fincom Services’ Role in ESG: - MJ’s company, Fincom Services, helps companies navigate ESG reporting requirements, develop practical reporting frameworks, and use ESG insights as a foundation for better decision-making. - The goal is to make ESG reporting accessible and valuable for companies of all sizes, emphasizing a shift towards viewing it as a tool for sustainable business management. Conclusion: This episode emphasizes that effective ESG reporting goes beyond compliance. It requires a strategic approach, sufficient resources, and integration with financial data. By adopting global standards, companies can achieve meaningful transparency, better risk management, and long-term sustainability. /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/30191848

Episode 1: 2024 Outlook 03/01/2024

Episode 1: 2024 Outlook Sustainability in Motion Podcast – Episode 1: 2024 Outlook Hosts: - Matt Orsagh, Chief Content Officer at ED4S - Maria Maisuradze, Founder and CEO at ED4S - Nawar Alsaadi, CEO of Kanata Advisors, Chief Advisor to ED4S Episode Focus: In this inaugural episode, the ED4S team dives into their sustainability predictions for 2024, exploring regulatory impacts, the future of sustainability roles, the rise of biodiversity investments, and the evolving landscape of climate commitments. --- Key Takeaways: 1. Regulatory Push Intensifies - As California and European regulations, including the CSRD, come into effect, companies will focus on implementation, impacting departments like finance and consulting. The move toward board accountability in Europe could drive deeper organizational change. 2. Rise in Biodiversity and Natural Capital Investments - Following the TNFD’s release, interest in biodiversity-focused funds is expected to grow, similar to climate-focused funds in recent years. This shift highlights the need for comprehensive biodiversity data and thoughtful investment structures. 3. Evolving Role of CSOs - The role of Chief Sustainability Officers may shift in 2024, with sustainability responsibilities diffusing across departments, such as finance. This could alleviate the overwhelming expectations on CSOs and embed sustainability more deeply within organizations. 4. AI’s Role in ESG Data Management - AI could play a crucial role in managing ESG data bottlenecks, automating data analysis, and providing actionable insights for sustainability professionals, ultimately enhancing workflow and reducing workload. 5. COP 29 Expectations and the Future of Climate Summits - The team predicts that COP 29 may face challenges, with possible economic downturns and political shifts potentially dampening progress. There is also speculation about whether COP events will continue to hold significance in the climate conversation. Conclusion: This episode sets the stage for a year of change in sustainability, with regulatory advancements, innovations in ESG data management, and evolving corporate structures shaping the field. --- To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment. /episode/index/show/d169b267-8405-466a-bca3-1008c192e2da/id/30191793

Sustainability In Motion

TOPICS