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Sustainability Corporations, Capital Markets and Global Economy.

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Presentation on theme: "Sustainability Corporations, Capital Markets and Global Economy."— Presentation transcript:

1 Sustainability Corporations, Capital Markets and Global Economy.

2 Introduction A sustainable business is on that takes a long term view, considering the impact of its operations and long term strategy on the environment, community , society and economy. The single objective of improving the organization profit had been replaced with the concept of improving the triple bottom line of measuring sustainable performance in terms of making profits while considering the impact on planet and its inhabitants, then in turn making the organization more economically sustainable for the long run.

3 Global Economy and Financial Crisis
One of the major cause –lack of adequate focus on transparent long term sustainable performance. Ineffective corporate governance Troubled financial institutions Bailout fro tax payers money from US and UK –Failure for sustainablility.

4 Approches for Sustainability
Establish more effective and globally enforceable regulations to monitor activities and performance of corporations and thus protect investors Second is for the global market to empower shareholders to change a companies legal jurisdiction, which will enable shareholders to choose counties that better protect investor interest with a more robust corporate governance system.

5 Global Financial Crisis impact
New regulatory reforms to long term performance., minimize risk, strengthening the quality of financial reporting, ensuring compliance. SR can offer solutions to emerging and widening corporate reporting challenges and risks facing business firms. Business Sustainability should focus on the following Strategic Operational Compliance Financial Reputaion

6 Capital Markets Confidence in Sustainability and Financial health of public companies is essential Cost effective regulations to protect investors – efficiency in attracting global investors Transparent and high quality information demonstrating the sustainable of a company are the lifeblood of the capital market. Reliability of information is key. Investors confidence in sustability information will drive willingness to invest.

7 Cont… Promoting and enforcing sustainability performance along with demanding accountability reporting to ensue transparent flows of reliable and accurate KPI information to the markets. Policy makers, standard setters, regulators, investors, business and educators should promote sustainability performance and accountability.

8 Role of Corporation in Society

9 Sustainability information needs of investors
Integration of sustainability information into investment analysis and the decision making process Incorporation of sustainability information into investment ownership policies and practices Promotion of appropriate disclosure on sustainability information by the entities in which institutional inventors invest Promotion of acceptance an implementation of the principles within the investment industry Collaboration among institutional investors to enhance the effectiveness of implementing the principles. Reporting an initiative , activties and progress towards implementing these principles.

10 Sustainability information for Investers
Identification and assessment of risk and return potentials. Evaluation of management quality Shareholders communication, proposals and proxy voting. Development of customized investment products or portfolios Evacuation of asset manager

11 Sustainability reporting are associated with enhanced social responsibility, improved sustainable performance, more effective employee training and corporate governance, enhanced managerial credibility more ethical practices and reduced bribery and corruption. USE of sustainability information Assessing risj and opportunity associated with sustainability issues pertaining to all five dimensions of EGSEE. Integrating sustainability performance into investment decision making Enhancing dialogue with management and directors on all aspects of sustainability performance Determining to what extend financial institutions are suing sustainable information in general and how each component of EGSEE performance impacts their investment decision making.

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