Discussion (Sustainability)
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Nov 24, 2024
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Discussion
The first way that I would communicate the new sustainability risk to my investors is by
formalizing sustainable business integration. This is done by developing my business case for the
latest sustainability risk, demonstrating accountability, and cultivating collaboration between
governance teams, investor relations, and sustainability. Doing so will show responsibility for
environmental, social, and governance (ESG). Secondly, I would devise a proactive investor
engagement plan. Here, I would diversify my investors' engagement plans and use a language
that the investors value and understand. This is because many investors want an organization to
be proactive in communicating how they would integrate ESG factors into their strategies and
how they will improve this situation.
I would determine which information I want to share and where I will share this
information with them. Crucial information that I would disclose includes decision-useful
information (both qualitatively and quantitatively), sustainability information (where the
investors are seeking), and the materials and finances required to address the new sustainability
risk. Ideally, investors require a more comparable and robust disclosure that gives them the
information they need to make excellent investment decisions. Lastly, I will share with them the
potential litigation that the organization would face if it released a lot of waste materials during
its production processes, making them understand why it is important for them to invest in the
company and help us address this new sustainability risk. However, I would not disclose
information unrelated to the latest sustainability risk because it would be irrelevant to the issue I
am handling now. Investors need to know information that would help them determine if they
want to invest their financial resources in the company and the associated risks they would face
if they decided to invest.
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