Socially conscious investors want to know more about you

Welcome as they are, profits and growth are not the only issues driving investor concern. People increasingly realize that true success demands vision and accountability.

This is having a real impact in the financial world, where a whole niche market of ESG investing has sprung up. ESG stands for Environmental, Social and Governance investing—in other words, what are you doing to protect the environment, provide social leadership, and be wise stewards of your business? There are funds that invest only in companies that meet ESG criteria.

A lack of standards

The trouble has been distinguishing true performers from those paying only lip service. Each company has been free to portray its performance in the best possible light. There’s even a word for it: greenwashing. We say a company is greenwashing when it makes false or misleading statements about the environmental benefits of its products or practices.

Thus was born the International Sustainability Standards Board in 2021, a public-interest organization that seeks to develop a global baseline for sustainability disclosures.

IFRS S1 and S2

We’ve been following this issue very closely at TRSB as we’ve been translating sustainability reports for financial and regulatory clients for years. The new IFRS S1 is the first global standard to set down general financial reporting obligations on sustainability and major short-, medium- and long-term risks. IFRS S2 is a second reporting standard specifically on climate change risk. Both are new for 2024.

While neither standard is yet compulsory in Canada, there are solid business reasons for complying now. Companies may want answers before doing business with you. Consumers, particularly younger generations, are looking for accountability. And your bank may offer better financing rates if they’re reassured about risk.

Time to take action

As a translation provider, it’s easier for us at TRSB to meet environmental standards than, for instance, a cement manufacturer or a transport company. After all, we’re paper free and almost 100% remote. But there are other ways to take action, such as how you choose your suppliers.

Think about documenting your efforts toward diversity and inclusion. Does your hiring process have safeguards against race and gender bias? At TRSB, our process is heavily skewed to language ability, and that certainly helps.

Governance issues are important too. Think about things like board independence and executive compensation, or the extent of your community relations.

We’re there to be your partner

Whenever you need a hand communicating what your business is all about, TRSB is there to be your partner. Our talented writers and translators are like members of your team, ready with help that’s timely and on target. Contact us today.