As anti-ESG voices are raised in the United States, companies here are increasingly adopting environmental, social and governance strategies, transforming the work of chief financial officers, now responsible for measuring climate risk or inclusion, in addition to profitability.
Bouchra M’Zali, professor in the department of strategy, social and environmental responsibility at the School of Management Sciences at the University of Quebec in Montreal (ESG UQAM), predicts a bright future for ESG (environmental, social and environmental) standards. governance) in Quebec despite the debate raging among our neighbors to the South.
“It’s a well-established trend here,” she notes. There is a core of investors who have demonstrated that it is important to take ESG issues into account. And this base expanded when we realized that there are risks, particularly of boycotts, if we ignore them. »
Companies have also integrated ESG criteria into their strategic planning. “Customers demand it, as do investors,” explains Bouchra M’Zali.
A question of relevance
BBA’s commitment to sustainable development is not new. This engineering consulting firm specializes in renewable energy projects and electrification. Upon taking office in 2022, the company’s new president, Jérôme Pelletier, launched a plan to achieve carbon neutrality by 2030.
We hired an external firm to calculate our past carbon footprint. We managed to offset our carbon emissions over the first 42 years thanks to our agreement with Trees Canada.
Vincent Massé, Chief Financial Officer of BBA
As a private company, BBA has no obligation to integrate ESG standards into its business decisions, recalls Vincent Massé. “We believe that we have no choice but to do so in order to remain relevant to our customers, our 1,600 employees and our future employees. »
He emphasizes that BBA takes concrete measures on a daily basis. Energy source for offices, carbon emissions for travel during business trips and targets to be achieved to increase the number of female associates: all these data (and many others) are now measured by Vincent Massé, in addition financial information.
The company produced its first ESG report last June. She plans to update it every two years.
Towards harmonization of standards
The International Sustainability Standards Board (ISSB), established in Montreal since 2022, unveiled its first two financial disclosure standards linked to ESG criteria.
“There is an attempt to harmonize common standards,” explains Bouchra M’Zali. It going. The discipline is changing. »
According to her, this standardization will allow better reading of the data provided by companies. “In my humble opinion, requirements will evolve over time. The emphasis is currently placed on the environment, but the social aspect is neglected because it is difficult to measure. »
The one who also holds the African Chair of Innovation and Sustainable Management emphasizes that we cannot compare companies in different fields with each other. “Each sector has its challenges. Water management affects mining companies, but not banks,” she explains.
The president of the board of directors of the Quebec section of Financial Executives International (FEI) Canada, Dominic Grimard, is delighted with the establishment of the ISSB in Montreal.
Even if it is still early to say, he thinks that the standards will clarify the work of financial managers.
More engaged finance leaders
Traditionally, the chief financial officer manages the purse strings. This mandate is being turned upside down by ESG criteria. “Finance leaders will have to adapt to this new way of doing things, be more involved and propose solutions,” believes Dominic Grimard.
Himself Chief Financial Officer of Power Sustainable, Dominic Grimard predicts that a company’s ESG report will eventually be as important as financial results for institutional investors, such as pension funds.
Bouchra M’Zali agrees. “Financial managers will have to integrate these criteria into their investment evaluation and take into account all extra-financial issues. »
She adds that finance leaders must anticipate future ESG issues, such as diversity, and demonstrate agility to meet customer and investor expectations.
“We mainly act on people’s behavior,” believes Vincent Massé. The latter believes that his role is now to influence people to make the right decisions regarding ESG standards. For example, it encourages the use of public transportation or green taxis and the transition to LEED-certified buildings.
“The challenge is to be logical and constant, to rally people without bullying them. »
reference: www.lapresse.ca