The value of corporations in society is shifting as investors can no longer utilise the same quantifying metrics to determine whether an organisation is valuable by its share price alone. Environmental, social and governance (ESG) parameters are becoming increasingly important for investors who take a keen interest in climate health and risks. As governments are adapting climate change laws to synchronise with their pledged commitments to reducing C02 emissions, public and private companies are adapting too.
From a board level to C-Suite, directors, general counsel and external advisers, all stakeholders are becoming more aware of today’s global market’s geopolitical, macroeconomic, and social concerns. These concerns require vigilance and the balancing of capital and priorities, which measure both financial returns and societal expectations that ESG requires.
The managing of financial risks, and reputational risks, seems to be of growing concern as organisations struggle to find a happy medium. Furthermore, capital flows are diverting to perceived greener alternatives as investor demands increase and become tighter. Sustainable growth is a longer-term priority within an inflationary environment, and priorities have been shifting for CEOs. The current mindset is to cut excess spending and redeploy capital to areas of the business that will deliver results in a bear market.
Other strategies target undervalued businesses ripe for acquisition to leverage buying power and expand in a downturn when competitors become more conservative. Nevertheless, laws within jurisdictions will continue to influence strategies which either result in a more aggressive approach to aligning ESG measures or a slower reactive rate of change influenced by the enforcement of laws and other cost factors. Investors and company directors know that in the long-term, value (both financial & social) will grow by being proactive, transparent, and adaptive to planet health and human wellbeing.
Our corporate governance approach leverages human resources and the technological advancements of blockchain technology to deliver factfulness transaction management and prevent greenwashing. Our responsible, logical, and adaptive business strategies are made possible by a qualified team of ESG specialists. Our team consists of financial experts, carbon accountants, analysts, technologists, and legal representatives who bring their points of view to the table to enable rigorous insights to deliver well-thought-out plans and strategies.
Ocean Blocks are, in effect, risk mitigators and strategic visioners who consider where the world is heading and how to bridge the gaps beforehand. Ocean Blocks specialists advise directors’ on how to adhere to newly formed climate laws, climate change risks, capital access risks and the changing trends adapting ESG strategies. Our collective knowledge and technology enable us to deliver innovative bespoke solutions to corporates while seeding principles of progression. Reach out for assistance with your ESG strategies and climate risk appraisals or for our views on how geopolitical tensions could impact your organisation.