ESG = Environment, Society & Governance | SDG = United Nation, Sustainable Development Goals.

A modern criteria about investment philosophy has positioned on top of mainstream. The way corporations are impacting the environment, society and governance, the sustainability ratios are generating interest in investors with focus on that unexpected risks can be catastrophic for long-term results.

  • ESG Risk Factors Can Hurt Long-Run Returns.

How Can Corporations Improve their ESG Performance?

  • SDG Alignment To Boost Corporate ESG ratios.

SDG framework corporate mass adoption provide revenue, generating business growth opportunities and fostering innovation in products and services. By identifying new business models, products or services that drive progress toward the goals, it is likely that more resilient and prosperous communities will emerge, markets will expand and new ones emerge, and ESG performance will boost.

The money flows are redirecting towards the new challenges that the global development objectives demand from a sustainable point of view. To improve the ESG ratios corporation can alignment to the UN SDG, a critical step on here will be to identify how the goals directly and indirectly relate to their business. Companies should take a strategic approach and align their corporate priorities with the relevant SDG to better engage with customers, employees and stakeholders to make a positive impact.

The SDG Framework

The SDG are a set of 17 global objectives focused on sustainable development issues ranging from poverty, equality, education, climate change, innovation, infrastructure, land and water, and production / consumption, with an objective date of 2030.

The gap to reach those goals is $7 trillion planned by 2030 and it is generating an corporate opportunity to improve their ESG performance with a potential investment value in those sectors.

According Morgan Stanley survey, 78% of institutions integrating or considering sustainable investing are also at least considering an alignment with the SDG as part of their investment strategy.

ESG/SDG Pair, Sustainability Trading

Sucre.IO comes to solve the problem of connectivity between sustainable ventures, their financing and impact measuring. Now fund managers, corporations and investors from around the world can to align their sustainable strategies with the SDG framework through a Blockchain platform, being able to generate:

1.- Potential financial returns

2.- Positive social impact

3.- Corporate stakeholder's engagement

4.- Hedge ESG risk factors

5.- Boosting ESG corporate performance

6.- Impacting the world by SDG reaching out support

How We Do That?

Tokenization: It is a process where a cryptographic protocol based, which implements an algorithm with a smart contract running on a blockchain. On our blockchain it can be used to share between the token holders, profits, revenues, interest, etc, plus capital gain/loss in the token price, derivated of the financial result obtained in a sustainable project SDG aligned. Fully tradeable in our decentralized exchange.

Sustainability and SEC Filings

According to the Sustainability Accounting Standards Board (SASB) current point of view, the sustainability corporate disclosure world is a present significant development. Investors are demanding reliable, comparable, financially material, decision-useful, industry-specific ESG information. Even though public companies might appropriately provide this information either within or outside of regulatory filings.

Some corporations appear to have decided that use 10-K and 8-K SEC filling because SASB topics and metrics are targeted at financially material ESG information, many investors will expect to see such disclosures being made within the SEC reporting regime and with the seriousness, accuracy, and controls comparable to traditional financial information.

ESG Risk Measure

Recently Yahoo Finance launched in partnership with Morningstar the sustainability metrics tab where investors can evaluate corporations ESG performance, on more of 2,000 public corporations, 28,000 ETFs and mutual funds.

Investors Perspective

The perception of a trade-off between good ESG practices and financial performance is being replaced by an understanding of how environmental, social and governance issues can contribute to higher potential returns and inflate risk. The intensity of recent interest has been driven by a fundamental shift in sustainable investing has evolved, and where can find how to reach high quality ESG performance.

Risk Disclosure

Cryptocurrency trading is not suitable for all investors and involves the risk of loss. The risk of loss in cryptos can be substantial. You should, therefore, carefully consider whether such trading is suitable for your financial condition. No statement within this webpage should be construed as a recommendation to buy or sell cryptocurrencies or as investment advice.

Sources: 

Why Sustainable Development Goals should be in your business plan

Tokenization, Explained

Sustainability Indices: Benchmarks of listed companies’ future viability

Morgan Stanley: Sustainable Signals, Asset Owners Embrace Sustainability (.pdf)

Harvard Law School Forum on Corporate Governance and Financial Regulation

Germán Malavé
Written By
Germán Malavé
Alternative Finance | Sustainable & Impact Investment | Fintech World | UN SDGs | Sucre.IO Co-Founder & CEO