Treasury and Payments
How treasurers can advance ESG priorities and objectives
Driven by generational mega-trends, ESG adoption has hit an inflection point. Learn how treasury leaders can support business-wide ESG priorities.
Environmental, social, and governance (ESG) is a set of qualitative and quantitative standards that outline the key elements for transitioning to a more sustainable world. With a central role inside large and diverse enterprises, treasury teams' priorities and objectives can have a broad influence that spans internal stakeholders, external business partners, investors and our shared communities. That influence can help treasury teams advance business-wide ESG goals and foster a greener and more inclusive world.
Here are nine steps that treasury teams can follow to design and implement an effective ESG strategy.
Positioning corporate treasury teams to drive ESG priorities
1. Review your company-wide ESG strategy
Understand core ESG priorities like greenhouse gas reduction/net zero targets and sustainability development goals.
2. Create an ESG stakeholder working group
Evaluate ESG priorities across treasury partners and identify internal stakeholders to drive ESG adoption.
3. Benchmark ESG performance
Understand how third parties like rating agencies currently view ESG performance and benchmark against industry best practices.
4. Determine your hypothesis
Review treasury policies, identify ESG factors to improve and drill-down into financial targets across daily treasury activities.
5. Design KPI methodology
Define treasury key performance indicators for specific ESG targets.
6. Validate design principles
Validate and iterate key performance indicators with stakeholders to ensure ownership and transparency.
7. Develop use cases
Establish use cases to drive progress toward key performance indicators, match use cases with design/pricing framework and test across divisions.
8. Measure internal and external performance
Create transparency around current and future state targets with reporting on internal metrics and external scorecards.
9. Evaluate ESG performance
Engage partner to regularly test whether proof of concept has driven towards solving hypothesis.
How J.P. Morgan can help advance your ESG goals
To explore ways J.P. Morgan can advance your ESG priorities,
please contact your J.P. Morgan representative.
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