ESG Advisory Services

With growing market expectations for companies to consider all stakeholders in their strategic decision making, the need for a robust corporate governance framework that effectively considers environmental and social issues, is key to long-term value creation.

As investors show a growing interest in how companies are responding to ESG topics such as climate related risks, management of human capital, or gender diversity, whilst at the same time increasing their scrutiny of traditional governance issues such as board effectiveness and pay; it is essential that companies address such topics by following a consistent and structured approach.

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Morrow Sodali assists companies with identifying gaps and opportunities for improvement in their ESG practices and disclosure, and in some cases drafting of disclosure. We do this by supporting the company in identifying the most salient ESG issues by gaining a strong understanding of the company’s priorities, conducting benchmark and landscape assessments on relevant peers and investors’ expectation, by reviewing relevant ESG ratings to understand investor sensibilities.

Morrow Sodali also advises on the most relevant sustainability reporting frameworks and supports the company in developing material to address these priority disclosure areas, considered in light of the company’s context and aspirations.

Morrow Sodali can conduct an in-depth analysis of a company’s institutional shareholders to assess their support of ESG-related shareholder proposals and the integration of ESG factors into their investment decisions. As part of this analysis, we can provide clients with an assessment of the influence of proxy advisors and the role of ESG rating providers.

Morrow Sodali provides companies with voting projections on specific ESG-related voting items and advises clients on how to articulate and effectively engage their ESG story with identified key investors.

Morrow Sodali identifies key investors for engagement on ESG topics, disclosures, and trends. Strategic recommendations are then made as to the most effective approach to engaging specific institutions. Morrow Sodali provides year-round guidance and support on ESG-related stakeholder engagement.

Morrow Sodali conducts company-specific education sessions for management and board members involved in external investor engagements. We stay abreast of key ESG-related topics such as emerging trends, reporting frameworks, rating agencies and institutional investors. The Morrow Sodali Board & Governance team are also able to deliver interactive workshops on board-level governance of environmental and social matters. All workshops are fully bespoke and can include case studies drawing on the experiences of our expert practitioners and industry peers.

Boards must have the capability to have high-quality, regular and effective boardroom discussions on sustainability challenges. We provide tailored advice on the implications for board composition, structure, responsibilities, and information flows as well as practical guidance and insights to boards.

An effective approach to addressing sustainability requires alignment and accountability throughout the entire organization. We evaluate factors such as: the roles and responsibilities of the board and executives; the company’s values, strategy and risk management systems; stakeholder engagement; and public reporting. In doing so, we consider international and local regulatory requirements, investor expectations and peer practices.

The Morrow Sodali Board & Governance team can help clients develop and document the various policies, processes and reporting structures required to embed a strong organizational approach to sustainability. Examples include drafting or updating: ESG policies; board and committee terms of reference in relation to ESG responsibilities; templates for ESG reporting to the board; and other policies and procedures related to the management of ESG risks and internal controls.

In some regions, Morrow Sodali assists companies with the completion of ESG questionnaires by collating publicly available data and coordinating with the client on the collation of non-publicly available information. Typically, this follows research to consider the surveys that should be most imminently considered (e.g. for an inclusion in an index).

In some regions, Morrow Sodali provides clients with regular (even daily) updates with actionable insight. Based on an extensive scale collation of periodic investor ESG trends and perceptions, activists’ and NGOs’ initiatives, and other stakeholders’ actions, Morrow Sodali delivers reports tailored to a specific market, sector and/or theme, thereby helping companies monitor investors’ evolving expectations while building a richer understanding of key shareholder issues and concerns.

Morrow Sodali can provide Greenhouse Gas (GHG) inventory development and assist with management of other environmental data, such as water and waste. These metrics, once developed, are available for clients as needed for internal or publicly available ESG reporting. Our GHG inventory process is aligned with the WRI/WBCSD GHG Protocol Corporate Accounting and Reporting Standard, and will help clients tackle Scope 1, 2, and complex Scope 3 GHG emissions.

ESG targets, particularly those around emissions, are a key focus for investors and other stakeholders as they represent a company’s commitment to helping the world limit global warming. In recent years, it is not enough for companies to simply set targets; investors and other stakeholders are increasingly looking for emissions targets, in particular, to be more rigorous, aligned to the Science Based Targets Initiative (SBTi) and/or in line with becoming net-zero. Morrow Sodali can assist clients with setting ambitious and meaningful environmental targets, as well as set out a roadmap and clear strategy for how to get there.

Climate-related scenario analysis is becoming increasingly seen by shareholders as a critical step for companies incorporating climate-related risks and opportunities into their business strategies. With this in mind, the Morrow Sodali team provides climate-related risk assessments, helping businesses understand potential challenges on the horizon. The Task Force for Climate-related Financial Disclosures (TCFD) framework recommends companies assess the resilience of their business strategies, taking into consideration different climate-related scenarios, and evaluating the associated physical and transition risks and/or opportunities these scenarios may present.