ESG and your Organization

Environmental, Social and Governance (ESG) performance may be key to your company’s success. This may seem odd given the current political climate that is moving away from the government commitment to promoting ESG programs. The fact is that the movement by shareholders to promote ESG started before
the current change in Washington leadership and is continuing.

The importance of ESG is shown through:

• Customers who want to support
a business that is doing “good” or at
least not doing harm

• Investors who want to be associated
with an organization that demonstrates
ESG responsibility

• Employees who will voluntarily
contribute more of themselves by
being part of a purpose-driven organization

The investment community has
demonstrated this.

• Investment ‚firms such as Vanguard
and BlackRock have made
statements about their commitment
to ESG in selecting companies for
their investment portfolio.

• Per Larry D. Fink, Chairman and
CEO of BlackRock: “To prosper over
time, every company must not only
deliver ‚nancial performance, but
also show how it makes a positive
contribution to society.“

• Vanguard is now a signatory to
the Principles for Responsible Investment
(PRI). Founded in 2005, the PRI
is a United Nations-supported network
that encourages asset managers
and other institutional investors
to engage with corporations on ESG
issues to create a more sustainable
global financial system and support
long-term investment value.

• Investment advisory ‚rms such
as Institutional Shareholder Services
(ISS) and Glass Lewis now have an
ESG evaluation section as part of
their reports that recommend a
”For“ or “Against“ vote on proxy issues
presented to shareholders.

• Companies are now encouraged
to start a dialogue with their major
shareholders about their ESG activities
throughout the year.

Further, in this day of social media, a company or organization of any size can suffer quick and sometime irreparable damage through a claim of sexual harassment, environmental damage, or lack of good governance practices. On the positive side, the social media platform can provide a reason for someone to go
out of their way to do business with you or want to be employed by your organization. An inspiring example of a successful start-up venture with a social purpose is John’s Crazy Socks — johnscrazysocks.com — a father-son venture inspired by co-founder John Lee Cronin, a young man with Down syndrome. Their mission: we want to spread happiness.

You will find ESG sections on many corporate web sites. Good Advice: Add ESG as a marketing element for your business success and as an important component to rewarding your employees for their work. Please let us know if we can assist.

Jo Anne Rioli Moeller leads her firm
in consulting with executive management
on the development of solutions
to compensation and benefit delivery
challenges in plan design or execution.
The focus of her 4-year-old firm is
to assist organizations in improving
their total reward programs. Current
clients include organizations that are
in diverse business segments, have
employee populations of less than 100
to several thousand, and are national
and international. However, they have
the common challenge of attracting,
retaining, and incenting their staff to
further business objectives.

J.A.R. MOELLER LLC
Office: 561-362-0112
Mobile: 312-925-4201
www.jarmoeller.com
jmoeller@jarmoeller.com