VideoCorporate Political Responsibility Taskforce

Investor Pressure for CPR Reporting

Video 2 of 3

 

On November 18, 2021, we spoke with Chad Spitler of Third Economy to explore “ESG, CPR, and Sustainable Finance: How Should Companies Prepare?”

Despite growing pressure from investors for companies to commit to ESG, testing for alignment proves more difficult. In this module, we examine company disclosures and what data is necessary for investors to make informed decisions.

In this module, we explore:

  • How do you test for alignment or misalignment?

The Corporate Political Responsibility Taskforce (CPRT)’s Expert Dialogues are in-depth, recorded conversations with academic experts, stakeholder advocates and business practitioners to provide our members and other CPR champions with the expertise and context they need to develop principled, proactive CPR strategies. Specifically crafted as conversation-starters for business students, government affairs officers, sustainability executives, diversity, equity and inclusion leaders, investors, academic experts, and stakeholder advocates, each module is designed to spark constructive, non-partisan, principles-based dialogue without “being political.”

Third Economy works with institutional investors and financial advisors to build sustainable investment capabilities and with companies to improve their ESG performance. Their VIA3 framework includes a data-driven approach to measuring alignment, including alignment of company’s political influences with its stated ESG commitments. Prior to founding Third Economy, Chad spent 15 years at BlackRock, most recently as Managing Director and COO for the Corporate Governance & Responsible Investment team.

KEYWORDS:#CorporatePoliticalResponsibility #ESG #EnterpriseRisk #ESGMetrics

More Resources

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BookHarvard University Press

Advances the argument that American CEOs, seemingly more powerful today than ever, have abrogated the key leadership role they once played in addressing national challenges, with grave consequences for American society. 

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ReportUN

Widely accepted multi-sector framework outlining expectations for companies to evaluate and disclose their commitment to human rights, identify salient issues, identifying processes for responding to claims, conducting due diligence and identifying strategies to prevent, mitigate or remediate adverse impacts on individuals and communities. Supports corporate political responsibility by outlining political rights as human rights, and providing established processes to draw on. 

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ReportHeritage Foundation

This article outlines how crony capitalism distorts the market, violates the principles of free markets, and risks value creation for all, as reflected in the Heritage Foundation's Index of Economic Freedom.

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ArticleSSIR

Outlines a framework to help companies determine how to engage with social issues and an appropriate level of engagement—ranging from supporter to champion—describing the key to an effective engagement plan that integrates functional silos, all bolstered by compelling case studies.

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This seminal report from Freshfields Bruckhaus Deringer, addresses the question of whether institutional investors such as pension funds and insurance companies are legally permitted to integrate environmental, social and governance issues into their investment decision-making and ownership practices. The study describes the legal framework for institutions in Australia, Canada, France, Germany, Italy, Japan, Spain, the UK and the US.

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ReportAccountAbility, UN Global Compact

This guide provides a framework for companies and NGO's to use to determine whether their lobbying practices are responsible.

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BookBerrett Koehler

The book opens by establishing the minimum expectation that businesses support the right rules of the game—those rewarding long-term value creation rather than destruction—and shows how companies can live their values through cross-sector collaboration, eco-efficiency, and strategies advancing prosperity, planet, and people, supported by real-world cases.

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ArticleMIT Sloan

Presents a framework for when companies should present forceful or tempered political positions based on their publicly stated values and materiality.

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