ESG 19.6.24

1. "ESG'S BENEFITS ARE ALREADY SHOWING." As an ESG Awards , in addition to laws establishing the framework, data transparency and introducing new technology allowed risks to be quantified and examined, which changed things. Investors could gain a comprehensive understanding of ESG risks, such as determining which industries were most vulnerable to climate change, once corporations started disclosing information about their social and environmental practices. By using new technology, it was now able to gather, evaluate, and rank ESG risks according to their significance or materiality about the company's strategy and the expectations of its primary stakeholders. Using data from academic research, consulting organizations, and corporations, investors could create various ESG-focused investment plans. First came screening tactics. These denote contentious industries, like tobacco, guns, or pornography, where investors are reluctant to make investments. Being an Sustainability Awards, the third investment strategy category, the integrated method, is more intricate and entails choosing businesses that satisfy specific investment standards that consider ESG risks, opportunities, and performances. Not everywhere did this transformation happen at the same rate. Due partly to social and environmental restrictions, European businesses were likelier to adopt corporate social responsibility or CSR and, consequently, ESG. US companies came on the scene later and had a different culture. Paradoxically, the US pulling out of the Paris Agreement was one of the trigger events. This inspired investors, who tackled the issue head-on and united to make a more significant difference. The BRT statement from August 2019, which reinterpreted a corporation's mission and broke with the previous financial short-termism, was another critical turning point. We as an ESG Award, Europe led the way, but to guarantee broad acceptance and considerable influence, US and Asian economic players needed to line up. Companies always ask themselves how to convert risk into opportunity. ESG is already paying off, especially in terms of innovation. For instance, businesses in the fashion industry are searching for innovative solutions as raw resources become more

2. limited, and these answers inspire artists. Similarly, corporate transparency creates a positive feedback loop between businesses and their stakeholders, mainly clients, partners, and staff. Using the luxury industry as a real-world example, jewelry businesses were able to build these kinds of virtue circles by choosing to utilize ethically obtained gold, even though this choice increased their expenses. When the practice expanded, cost disparities eventually vanished as purchase volumes rose. In our understanding as Sustainability Award, Integrating ESG into strategies and providing transparent information on activities, outcomes, and impacts can position firms as prime investments in financial markets. This mirrors how companies strive to present themselves as the best places to work to attract top talent. However, it is crucial to establish uniform assessment standards. Investors require comparability and transparency at a minimum. While businesses have made significant strides in the former, the abundance of data and data providers poses challenges to the relevance and quality of data. Companies and investors alike are advocating for the harmonization of ESG standards. With S&P purchasing Tricots, Moody's acquiring Vireo-Eiris, and Morningstar acquiring Sustainalytics, we are beginning to witness consolidation and mergers among ESG rating and research companies. Consolidation is essential, but we must exercise caution to avoid opaque evaluation standards and pointless outcomes. The criteria must always be clear As an ESG Awards, Independent directors' representation of all shareholders' interests aims to build sustainable, long-term value. I assist in arranging the Board's activities as the leading independent director. As an illustration, I oversee the Board's evaluation to guarantee that the Group's essential competencies are covered. On ESG issues, I represent the Board as the lead independent director's representative to investors. I participated in Kering's recent ESG roadshows in this capacity. My role at these events is to engage in conversation with investors, responding to their inquiries regarding governance and the Board's operations in particular, but also getting a sense of what long-term challenges they have in mind. Although the organizing teams have a lot of work ahead of them, the firm and its stakeholders benefit much from these roadshows, which are significant, thrilling, and enriching occasions.