Sustainability implementation

Published: Oct 2020

This is where treasury gets to roll out the plan, working with partners to acquire relevant data and expertise and build the systems, processes and procedures required to deploy any new practices (including deal execution, documentation, reporting, monitoring and roadshows).

Moises Vidal

Managing Director, Global Transaction Services, LATAM
Bank of America logo

Due to current challenges, companies have noticed environmental and social vulnerabilities at an increasing rate, directly affecting corporate and treasury performance. To advance the dialogue in ESG strategy, transparency and disclosure, corporates, including their treasuries, require the establishment of projects with strategic plans that describe goals and timeframes.

Implementations strategies should include:

  • A full description of relevant projects.
  • All specific environmental objectives.
  • A breakdown of projects by the nature of what is currently financed – eg assets, capital expenditures, operating expenditures.
  • KPIs and information on the projects’ environmental impacts, aligned with the commitments and methodologies within the ESG strategy and programme.
  • Details of how teams will achieve the following results:
    • Treasuries to control cash flows, creation of the bank infrastructure and risk management to mitigate performance risk.
    • Finance controlling accounting operations of the ESG programmes, including the production of periodic financial reports and controls.
    • Auditors will monitor the performance and governance of ESG.
    • PMO/Operations will design programme functionality and execute the project.

The methodology needs to be oriented to:

  • Create and implement policies, processes and methodologies only for ESG purposes.
    • Annual reports featuring large quantities of detail on those areas can often obscure new information or messages.
    • Bank account infrastructure must allow transparency.
  • Make it easy to find and access relevant information related to ESG programmes.
    • Put the ESG report on the investor relations section of the corporate website.
    • Marketing inside the website of all ESG-relevant press releases.
  • Consider ESG language and strategy communication.
    • Ensure that the way in which the report explains itself will be grasped by the target investor base, stakeholders and clients.
  • Implement Big Data and include relevant information.
    • Ensure the report includes historical data with a combination of current facts to demonstrate changes and developments.
    • Facilitate and promote connection channels inside the company and between the company and the investors.
    • Promote finance routine reviews to present at least biannual results.

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