ESG, Uncategorized

How the UN’s Sustainable Development Goals Will Impact the Business Landscape

Posted on March 28, 2023March 28, 2023 by Sharon Amor

findings.co discusses the 17 sdg goals that the un has implemented.

28
Mar

How will the UN’s Sustainable Development Goals Affect the Future of Companies?

In 2015, the United Nations (UN) established 17 Sustainable Development Goals (SDGs) aimed at creating a prosperous and thriving future for all communities, countries, and their people by 2030. Central to achieving these goals is the need for industries, companies, and organizations to adhere to environmental, social, and governance (ESG) frameworks and regulations.

Several of the SDGs, including goal 8 (Decent Work and Economic Growth), goal 9 (Industry, Innovation and Infrastructure), goal 10 (Reduced Inequalities), and goal 11 (Sustainable Cities and Communities), have a profound impact on businesses’ decision-making processes and investment strategies.

Now, let’s take a deep dive into these four goals and explore how they may shape the future of businesses.

Goal 8: Decent Work and and Economic Growth

One of the five factors identified by the UN that halt the advancement of SDGs is supply chain disruption caused by various events such as pandemics, natural disasters, conflicts, or economic barriers. Companies can take measures to prevent such events from drastically impairing their businesses, such as by administering risk management assessments to their suppliers, diversifying their suppliers, and setting a concrete communication network between their suppliers and product managers.

Failing to take appropriate action can lead to detrimental consequences that can affect businesses, such as quality reduction, product delays, and ultimately profit loss.

Goal 9: Industry, Innovation and Infrastructure

It is no secret that technology has significantly enhanced people’s lives worldwide and accelerated the growth of industries. The objective of this SDG is to promote sustainable and inclusive industrialization.

According to the United Nations Environment Program (UNEP), “the number of people employed in renewable energy sectors is presently around 2.3 million.” To ensure sustainable and environmentally-friendly practices, it is crucial to adopt technology that enhances the wellbeing of employees while minimizing harm to the environment, especially given that technology has created job opportunities in this field.

Goal 10: Reduced Inequalities

The COVID-19 pandemic has exacerbated an already significant problem in many developing countries, where rural communities are experiencing a massive economic downturn. As a result, a large number of people are leaving these areas in search of refuge and economic opportunities elsewhere. The number of refugees across the world has reached an all time high. Rather than solely relying on governments and non-profit organizations, the private sector can play a significant role in reducing inequality and improving the current situation. Large corporations hold substantial sway in decision-making processes and can create business models that enhance working conditions, wages, and the lives of their employees, particularly those in developing countries.

While profitability remains the ultimate measure of success for businesses, investors are no longer solely interested in financially successful ventures. They are increasingly seeking to invest in companies that prioritize providing fair and humane working conditions for their employees and have a positive impact on the communities where they operate.

Goal 11: Sustainable Cities and Communities

Cities, neighborhoods, and industrial areas are being built to work with the environment as opposed to cause a disruption. New start-ups and companies have emerged and use AI technology to plan transportation paths, and reduce costs and stress in crowded cities and areas, such as Optibus, a start-up based in Tel Aviv, Israel. Similarly, Nordnese, another company, “develops waste management solutions to provide ‘greener; cleaner, and smarter; waste collection’.”

Moreover, Olleco, located in the United Kingdom, has developed technology that can convert waste and leftover oil into renewable, reusable energy to fuel cities and promote a circular economy. Essentially, they are taking something that was meant to go to waste and are putting it back into the economic cycle.

Improving the lives of human beings and the planet is one of the biggest challenges of the 21st century. Moving from the industrial era into one where new challenges no longer are defined by improving the lives of people has demanded the world change its strategy when it comes to how we do business. Technology, sustainable procedures, and healthy supply chain management are crucial to growing businesses.

How Findings Contributes to the UN’s SDGs:

Findings has contributed to these goals by providing businesses with a centralized platform for automating their risk management and supply chain compliance. Living up to these new standards can be challenging for companies whether they be small or large.

With Findings, customers can use our ESG assessments cost-effectively to monitor their suppliers’ carbon footprints to help achieve the UN’s SDGs. With one less thing to worry about, companies can focus on improving and growing their future for the sake of their success, their surrounding environment, and the planet.

LEARN MORE HERE

Cyber Attacks, ESG, Supply Chain Security

Is Chat-GPT a real cybersecurity threat? Here are 7 potential cybersecurity risks in using AIs

Posted on March 13, 2023March 13, 2023 by Yogev Kimor

7 Potential cybersecurity risks in using AIs | Findings.co

13
Mar

AI is everywhere, from Chat-GPT to Midjourney – But have you thought about the potential cyber risk in using it?

I recently sat with Jonathan Perry, CTO and Co-Founder of Findings.co to hear a PRO point-of-view. So here are 7 potential cyber risks in using AIs, such as ChatGPT:

WATCH THE VIDEO:

ChatGPT and cyber security – Is there a real, actual threat in there or is it just a big fuss that everyone talks about?

I think with regard to Chat GPT, it’s important to remember that the knowledge that ChatGPT gives is based on the sum of all available knowledge and data across the entire web.

And relying blindly on such information can create real security hazards.

So, security experts, and security engineers should not rely on such tools blindly. It’s only an advisory tool. And I think there Is a real threat of ChatGPT and similars.

It’s interesting to mention it because in marketing, we experienced more and more people saying that this is just a tool that is meant to help us create something and not something that’s supposed to be, instead of a marketer of any kind.

Would you agree on the same?

Definitely.

I think it’s really easy to fall into the charm of a chatbot just presenting you on a golden plate whatever you need to do and just follow it,

But that encompasses a real threat.

You don’t know if the output of the data you see is relevant, you don’t know if it’s secure enough.

It’s extremely important not to rely on it blindly.

Can anyone even ensure that ChatGPT is secure? Against these threats or secure at all?

I mean, once you enter something into Chat GPT and ask him to create something, can we even know that this data that you entered is secure enough, in your opinion?

Definitely NOT.. And the reason is it’s an extremely complex data set, unrealistic to think that humans can verify and make sure that the output you see is secure enough, it’s even fit for your purpose.

You don’t know if it even answered the question that you asked him at the first place. So I think common sense and just having the right experience are probably the best answer.

Any Cybersecurity attacks so for, using ChatGPT?

So we haven’t seen any real attack using Chat GPT so far, and I guess the reason is because it’s quite new, but I personally would believe that we will see complex attacks, uses and utilize AI technologies in general, not only ChatGPT, smart attack against industries and corporations. So, yeah, definitely.

How do you see ChatGPT affecting supply chain security?

It’s a good question. So we thought about it a lot here at Findings and I think we will eventually see organizations, companies and others utilizing Chat- GPT and AI in general to address supply chain supply chain questionnaires and to assess their vendors as well.

How do you protect against the risk of supply chain attacks using Chat- GPT or any AI available out there?

Not a specific checklist that you need to do in order to protect against such things; I think the general rule of thumb is just to take precautions, don’t rely on everything that you see and do.

It’s a good rule of thumb to life in general, but I think it definitely applies here in this topic as well.

And last question, out of your extensive experience in cybersecurity,

How do you keep informed? How do you know about new trends? What would be your best tip?

So, blog posts, and articles are a good thing, but I think the best tip I can give regarding staying informed is to have good connections and good networks because the best know-how and the best tips I’ve got, I’ve gotten from good friends from the industry.

I think having a good social and professional network is the best way to stay current.

All right, thank you so much for your time. Thank you. Thank you for watching.

Thank you for watching. And I’ll see you soon on our next video.

ESG

ESG’s Impact on ETFs

Posted on March 9, 2023March 9, 2023 by Or Kadosh

09
Mar

ETFs, or exchange-traded funds, are a type of investment vehicle that have been growing in popularity in recent years. As a passive investment, they allow investors to buy and sell a basket of securities that trade on an exchange, similar to how stocks are traded. This means that investors can gain exposure to a diversified portfolio of assets, such as stocks or bonds, without having to buy each security individually. ETFs also offer the flexibility of trading throughout the day, unlike mutual funds which can only be bought or sold at the end of the trading day. Additionally, many ETFs have lower expense ratios compared to mutual funds, making them an attractive option for cost-conscious investors.

Environmental, social, and governance (ESG) investing has become increasingly popular in recent years as well, as investors look to align their portfolios with their values. One area where this trend is particularly evident is in the growth of exchange-traded funds that incorporate ESG criteria.

And so: the rise of ESG ETFs came to play. These are designed to track the performance of companies that meet certain ESG criteria, such as having a low carbon footprint or strong labor practices. These ETFs may exclude companies that engage in activities such as fossil fuel production, tobacco, or weapons, and include companies that have strong records on issues such as gender diversity, labor practices, and environmental sustainability.

One of the primary benefits of ESG ETFs is that they allow investors to invest in companies that are aligned with their values without having to sacrifice returns. In fact, some studies have shown that ESG ETFs can outperform traditional ETFs over the long term. This is because companies that meet certain ESG criteria may be better positioned to manage risks and capitalize on opportunities that arise from trends such as climate change and evolving consumer preferences.

Another benefit of ESG ETFs is that they can help investors diversify their portfolios. By investing in a basket of companies that meet certain ESG criteria, investors can reduce their exposure to companies that may be more vulnerable to ESG-related risks. For example, companies with poor environmental practices may face increased regulatory scrutiny and reputational risks that could impact their financial performance.

Despite the benefits of ESG ETFs, there are some challenges to consider. For example, there is still debate around what criteria should be used to evaluate a company’s ESG performance, and there is a lack of standardization in the ESG ratings landscape. Additionally, because ESG ETFs are still a relatively new investment product, there is limited historical data available to evaluate their performance.

That being said, the growth of ESG ETFs is a positive development in the world of sustainable investing. As more investors look to align their portfolios with their values, we can expect to see continued growth in this area. In fact, some estimates suggest that the global market for ESG investments could reach $1 trillion by 2030.

Investing in a sustainable manner can lead to more resilient portfolios. Sustainable investing can reveal potential risks and opportunities that might otherwise go unnoticed and can result in improved performance. Traditional financial analysis might overlook risks such as climate change and data security breaches, which are becoming increasingly material risk factors with direct financial impacts on companies. By incorporating ESG factors into the investment process, investors can better evaluate a company’s long-term risks and returns, potentially improving the risk-adjusted returns of their portfolios.

Investors who are interested in incorporating ESG ETFs into their portfolios should do their due diligence to ensure they are investing in products that align with their values and meet their financial goals. This may involve evaluating the criteria used to select companies for the ETF and considering factors such as expense ratios and liquidity.

Overall, ESG ETFs are an exciting development in the world of sustainable investing. They have the potential to drive positive change while also delivering strong financial returns. Investors now have more options to align their investments with their values, and companies are now incentivized to improve their ESG practices to attract ESG-focused investors.

Learn More About Findings’ ESG Solutions

ESG

Importance of ESG in the Finance Sector

Posted on February 3, 2023February 3, 2023 by Yogev Kimor

findings.co talks about ESG in the finance sector

03
Feb

ESG is now a business reality

Environmental, social, and governance (ESG) is no longer just a buzzword floating around in today’s corporate realm. Issues around these three heads have become the top concern of business management and boards, and there are good reasons for the same.

As climate change is looming as a potential threat to humanity, it’s needless to say that effort has to be made by pretty much all entities of society to create a sustainable world. For the corporate enterprises, ESG is starting to form the foundation of a business framework that helps them achieve their financial and sustainability goals.

The importance of ESG is emphasized in the context of both SMEs and large organizations, especially amidst post-pandemic concerns and climate crises. After all, a conscious society is not solely dependent on government initiatives but also on socially responsible businesses capable of meeting its needs. It can foster equitable growth, employment creation, conservation of natural resources, and protection of consumers’ interests, to name a few.

A high ESG rating lowers the risk profile of enterprises in all industries by facilitating their top-line growth and reducing regulatory and operational hurdles. Many investors seek intelligent investing options in enterprises that adhere to high ESG standards. As such, those small and medium enterprises (SMEs) with a strong focus on ESG will be better positioned to attract investor interest.

What about the finance sector?

While ESG standards are crucial to all industries, the finance sector deserves a stronger ESG focus. Financial institutions across the globe are increasingly confronting risks due to reporting and regulatory requirements that revolve around the impacts of their business operations on ESG. As such, it’s of the utmost importance that financial institutions, which deal in billions of dollars on any given day, devise a robust ESG strategy to achieve long-term competitive success and avoid regulatory complications.

As a part of ESG compliance, the performance of finance companies and financial institutions is steadily shaping lending criteria, investment-related decision-making, and insurance factors. So, it becomes clear that the finance companies that are unable to create and implement an ESG strategy are at a higher risk of losing resilience and the long-term feasibility of their business.

For financial institutions, a primary environmental concern has been the shift to green or sustainable financing, a vital determinant of an organization’s reputation and a regulatory mandate. The governance concerns of financial institutions revolve around board structure, particularly board diversity, transparency and audit quality, and issues around remuneration of professionals, for example, executive pay. Labor management policies, well-being, safety, health commitments, and other labor standards are some social concerns facing financial institutions and social equality, customer privacy, and diversity and inclusion policies.

Conclusion

Financial institutions vary significantly in readiness for the shift to sustainability. As ESG concerns are getting global attention, the need for financial institutions to take action will increase. The agility of organizations to respond to changes in laws, regulations, and market expectations will be critical to success. Companies adopting a systematic and proactive approach to ESG will have greater resilience.

Cyber Attacks, ESG

Why The Energy Sector Is Especially Vulnerable to Cyber Threats

Posted on January 30, 2023January 30, 2023 by Or Kadosh

Findings.co explains why the energy sector is vulnerable to cyber threats

30
Jan

The energy sector is attractive to hackers for a number of reasons. While there are few documented attacks on energy infrastructure, the inherent nature of the sector makes it vulnerable to hackers. Cybersecurity compliance in this sector is critical simply because of the wide-ranging impact that a successful attack can have. The hackers that targeted the Colonial Pipeline network in early 2021 not only managed to extract a $4.4 million ransom but also pushed per gallon price by six cents in affected areas and gasoline futures to their highest level in three years.

What makes energy companies easy prey for cybercriminals?

1. Highly interconnected

The energy ecosystem is complex, consisting of physical and cyber infrastructure assets distributed across regions or countries. This creates a large surface area for attack. Moreover, the operational technology of grid distribution systems is increasingly allowing remote access to business networks, allowing hackers further opportunity to create inroads to company data.

The energy sector has historically been late to adopt technology and innovate. A lack of cybersecurity expertise means energy companies have to be more proactive in managing risks.

2. More to exploit

Cybercriminals have the chance to exploit vulnerabilities in energy companies’ IT system and operational technologies. IT systems include software, hardware and technologies to run business. Operational technologies include software, hardware and technologies to control motors, pumps and valves, among other devices and equipment.

Energy companies rely on different types of hardware, software and services from third-party vendors worldwide. Attackers can access a company’s network through a third-party vendor or supplier.

3. Always on infrastructure

The energy and utilities sector is increasingly using cloud services, driven by the need for improved flexibility and operational efficiency, and reduced capital expenditure costs. This digital infrastructure supporting the energy sector works 24/7.

4. Wide-ranging disruption

The prospect of severe damage is also an attraction for cybercriminals. A single attack on a network or system in the energy infrastructure can impact a number of entities. For example, a blackout of 6-7 hours from a cyberattack on the energy grid can cause financial loss, affect social-economic life and retard daily life activities.

5. Various motivations

Reliable electricity is a convenience of modern life, and also crucial to the nation’s security and economy. The electricity grid is a prime target for cyberattacks perpetrated by hostile countries. Financial motivation (ransom) and hactivism (to promote an agenda against the oil and gas industry, for example) are prime reasons for cyberattacks in this sector.

Actions to take

Businesses in the energy sector need a multi-pronged risk management strategy to stay compliant with industry standards and government regulations on cybersecurity. Active management of supply chain risk is crucial. Hybrid identity and access management solutions combining cloud and on-premise components can help bridge the gap between IT and OT architectures.

A strong incident response plan will minimize the impact of ransomware attacks while employee training on identifying phishing and other social engineering attacks will be essential to maintaining a robust compliance posture. Last but not the least, ensuring that the company’s cloud-based infrastructure is being monitored, or effective cloud monitoring, can help eliminate potential data breaches.

ESG

What Google’s Latest Layoffs Means for Its ESG Goals

Posted on January 25, 2023January 27, 2023 by Sharon Amor

Findings.co explores What Google's layoffs means for its ESG goals

25
Jan

In January 2023, Google announced it was laying off 12,000 employees globally. This news shook the tech industry, and rumors about how the layoff was done raised questions about the company’s commitment to its environmental, social, and governance (ESG) goals. Let’s take a closer look at what this announcement means for Google’s ESG initiatives.

The Impact on Google’s Economy Goals

Google has set ambitious goals related to its economic impact, such as increasing the number of businesses using its cloud products and services by 50%. To reach these targets, the company employs a large sales force to market cloud services to businesses. With the layoffs, these economic goals will likely take more work to achieve in the short term.

The Impact on Employee Engagement & Diversity Initiatives

Employee engagement and diversity initiatives are essential components of any ESG program. By reducing its workforce, Google has created a difficult situation regarding employee morale and diversity initiatives. While Google did provide severance packages for those affected by the layoffs, many of those impacted may feel slighted or unappreciated after being let go abruptly.

It remains to be seen how this decision will affect employee engagement in other divisions of the company and overall morale among current employees.

Furthermore, with Google’s stated goal of having a “fairly balanced gender ratio” across all departments by 2025, it is unclear if these layoffs have an adverse effect on this goal due to their heavy focus on sales and marketing departments which tend to have higher gender disparities than other departments.

The Impact on Sustainability Efforts

Google has made several commitments related to sustainability over the last few years, including transitioning all global operations to 100% renewable energy by 2030, as well as reaching net-zero emissions across all operations by 2050.

To meet these targets, they need an engaged workforce that understands their sustainability mission and is willing to work towards achieving their goals.

The recent layoffs could adversely affect these efforts if current employees feel disconnected from their employer or lack incentives due to decreased job security or resources available in their departments moving forward.

Conclusion…

Overall, while no one can predict precisely how these layoffs will affect Google’s ESG initiatives in the long run, it is clear that there are potential ramifications for each pillar of their ESG program both directly and indirectly related to this decision.

As organizations continue striving towards meeting their own sustainability goals while also providing secure employment opportunities for existing staff members during uncertain times like these, only time will tell how companies like Google balance both objectives simultaneously.

ESG

5 Ways You Can Invest in ESG That Aren’t Costly

Posted on January 19, 2023January 19, 2023 by Yogev Kimor

Findings.co will help you discover 5 ways you can invest in ESG that are not costly.

19
Jan

The hazards of climate change and the need for restorative measures are felt across the business landscape, which is why investors are increasingly looking at the ESG ratings of companies they are choosing to invest in. The channeling of funds towards driving sustainability has become the concern of a huge chunk of investors, who are now showing keen interest in smart investing in green stocks.

If you are considering an investment in ESG companies, you are actually signing up for high future returns. As the focus on maintaining business sustainability is increasing with each passing year, your smart investing strategies should pick the right avenues. Let’s take you through some ways you can go about investing in ESG.

ESG Stocks

One of the most recommendable ways to join the sustainability bandwagon is to invest your money in ESG stocks of companies that you feel will perform well in the future. The best way to evaluate a company’s ESG capabilities is by checking its impact report—a statement that’s released to highlight its sustainability and social initiatives. The report can give you an insight into how the company is handing ESG issues, reducing carbon emissions, and creating a positive impact on the world. Fuel-Tech (FTEK), Invesco MSCI Sustainable Future ETF (ERTH), VanEck Vectors Environmental Services ETF (EVX) are a few companies you can consider for your ESG investment.

ESG Funds

Sometimes, it’s recommended that you avoid screening individual stocks to know if they meet the ESG criteria. An alternative investment solution would be to put your money in an ESG fund. These funds include only those companies that meet the criteria for inclusion. This means that you will know where your money is being channeled. ESG funds are also considered a great option for investors looking to create a diverse portfolio of ESG stocks. The best part: you don’t have to do all the hard work. Shelton Green Alpha Fund (NEXTX) and 1919 Socially Responsive Balanced Fund (SSIAX) are ESG funds doing great in the present times.

Robo-Advisors

If you wish to go off the traditional investment route, you can go for a robo-advisor that offers ESG investing options. Finding such robo-advisors for your ESG investment needs shouldn’t be a difficult task, as the internet has a huge deal of options to offer. After you have identified the robo-advisor of your choice, you need to indicate to them that you are keen on investing in ESG funds. Henceforth, they take care of pretty much everything. You just have to deposit the money regularly and your investment will continue as per a preset plan.

Green Power Stocks

Another great ESG investment avenue for you would be green transportation. Although on a smaller scale, research is underway to use fuel-cell technology to create an alternative powering method for automobiles. Millions of consumers are waiting for this technology’s fruition. Businesses that operate in this space include Ballard Power Systems (BLDP), the producer of cells for vehicles and power backup systems. Also, FuelCell Energy (FCEL) is worth considering because it focuses on offering power options to various industrial and commercial facilities.

Waste Management Stocks

Lastly, you can consider investing in ESG stocks of waste management companies that have large recycling facilities. Companies such as Waste Management (WM) and Republic Services (RSG) are worth considering, especially during times when recycling has become a standard practice across the globe. Most people are becoming increasingly aware that they can reprocess metal, paper and glass and reuse them. However, the number of recyclable things continues to grow. Vegetable oil, Waste oil, cell phones, batteries, computers, and auto parts can have a second life. So, companies engaged in recycling these items can have great return-generating potential for investors.

Learn More About Our ESG Solution

ESG, Vendor Risk Management

ESG: Nice to Have or a Must?

Posted on January 12, 2023January 12, 2023 by Sharon Amor

12
Jan

Yup, the world has taken a new turn… and I’m not talking about post-COVID-19. Industries, governments, and the environment began adapting to new standards way before the world experienced the effects of COVID-19.

This is what is more commonly known as environmental, social and governance (ESG) data and numerous companies have defined it as a “must have” for supply-chain risk management.

Stakeholders are no longer willing to work with companies who do not take a genuine interest in incorporating ESG measures and let’s just say that investors are following along step by step. In addition, stakeholders and investors want greater transparency of information regarding issues such as carbon emissions and modern slavery.

That being said, as ESG standards and regulations are still developing and have not been considered a “concrete” measure like cybersecurity, companies need to understand what needs to be done to adhere to supply-chain compliance.

Let’s break it down.

What is ESG?

According to Investopedia ESG, “refers to a set of standards for a company’s behavior used by socially conscious investors to screen potential investments.”

In other words, numerous investors have this topic on their minds when it comes to making an investment decision. ESG guidelines and principles are expected to be incorporated into an organization’s culture and business strategy.

This is extremely important, but practically speaking, how do companies measure their carbon footprint and outline the specific steps to incorporate ESG into their supply chain and pipeline? For this, we need to have a better understanding of what each one of the pillars is referring to.

How can companies adhere to ESG standards?

As ESG is still a developing framework across the world, industry best practices based on experts in the field is usually what is adhered to.

In the United States, for example, there is not one body that has created a compliance audit for all companies to follow. Setting aside the political hemisphere, incorporating federal government law can reduce the flexibility and progress of the framework, not to mention that industries vary.

In contrast, the EU has a formal body (the EU Commission) that creates ESG regulations, but here comes the issue of trial and error to continuously stay up to date with standards.

In Singapore, a centralized registry exists where companies can upload all their ESG reporting, but this has only been recently implemented and has very little data currently.

Considering all of these alternatives, it seems the best solution for companies and organizations is to reach out to experts who provide software or auditing services that can review their ESG spectrum.

What can Findings do to Help?

Findings is a centralized, one-stop shop for enterprises and vendors to automate and scale their ESG assessment(s). We enable you to implement a sophisticated, straightforward, and efficient ESG vendor due diligence process.

Enterprises can use pre-built best practices assessments or can be custom-built according to an enterprise’s needs. Vendors can use our automated response to easily and quickly respond to incoming ESG questionnaires. Fast, automated, and at scale all in one place!

Reach out today

ESG

Slavery Still Exists?

Posted on December 14, 2022December 14, 2022 by Or Kadosh

14
Dec

Wait a second… What?

That was my exact reaction too. In fact, modern slavery is all around us. (More than you may think).

You’re probably wondering: Wasn’t slavery abolished internationally in 1948 when the United Nations adopted the Universal Declaration of Human Rights?

Apparently not.

It’s almost 2023 and we live in an age where approximately 50 million people, a quarter of which are children, are trapped in modern slavery. They are are forced to work and get married, and are being exploited sexually every single day.

While modern day slavery is widespread, many of us are unaware of what’s going on and the different forms of slavery that exist. You might be surprised to find that a large portion of slavery in today’s day and age is facilitated through different corporations. Furthermore, it can be found in companies of all different industries and sizes, and in every stage of the supply chain – from raw materials to manufacturing to shipping. Knowing about modern slavery is a responsibility every business should take on, because it is possible that you are working with suppliers who use slaves, without even realizing it.

Today, there are over 27 million people forced into labor. Many would say their business doesn’t tolerate modern slavery, but, when hundreds or even thousands of suppliers are added into the picture, how can you be so sure they aren’t using forced labor?

As explained by Anti-Slavery International, the oldest international human rights organization in the world, there are different forms of slavery today:

Human trafficking – “The use of violence, threats or coercion to transport, recruit or harbour people in order to exploit them for purposes such as forced prostitution, labour, criminality, marriage or organ removal.”
Forced labor – “Any work or services people are forced to do against their will, usually under threat of punishment.”
Debt bondage/bonded labor – “The world’s most widespread form of slavery. People trapped in poverty borrow money and are forced to work to pay off the debt, losing control over both their employment conditions and the debt.”
Descent–based slavery – “A very old form of slavery, where people are treated as property, and their “slave” status has been passed down the maternal line.”
Child slavery – “When a child is exploited for someone else’s gain. This can include child trafficking, child soldiers, child marriage and child domestic slavery.”
Forced and early marriage – “When someone is married against their will and cannot leave. Most child marriages can be considered slavery”
Domestic servitude – “Domestic work and domestic servitude are not always slavery, and when properly regulated can be an important source of income for many people. However, when someone is working in another person’s home, they may be particularly vulnerable to abuses, exploitation, and slavery, as they might be hidden from sight and lack legal protection.”

Why should your company care?

First off, I don’t think any company would be proud to say they use slaves. But besides that point, imprisonment up to life imprisonment and heavy fines are amongst the penalties. In addition, more countries are enforcing modern day slavery regulations and companies will need to show proof of compliance as time goes on. Not complying to modern slavery regulations will in turn make your company unappealing to investors and ultimately the end user. For example, in the United Kingdom, the Modern Slavery Act of 2015 requires businesses to report on steps they have taken to reduce modern slavery in their supply chains. With modern slavery so rampant in the United Kingdom, the legislation applies to commercial organizations that:

are a body corporate or a partnership (described as an ‘organization’ in this service), wherever incorporated
carry on a business, or part of a business, in the UK
supply goods or services
have an annual turnover of £36 million or more

Currently, many organizations provide a modern slavery statement voluntarily, but in the near future, the requirement will be extended to segments of the public sector as well.

Not sure where to start? Findings gives you a platform to show track your compliance. By doing so, you are demonstrating to other enterprises that they can trust doing business with you. In addition, Findings offers assessment tools that enable you to easily evaluate whether your business is staying compliant with modern slavery regulations.

Findings is proud of the work we do and we fully support the Universal Declaration of Human Rights. Learn more about how we can help you address modern slavery here.

aicpa soc 2, ESG, findings tech, soc 1

ESG companies are outperforming their peers in recent years – why?

Posted on May 19, 2022August 31, 2022 by Ilan Lavan

Findings.co | supply chain | security | ESG

19
May

Higher ESG rating, higher return

Indeed the ultimate goal of any investment is to earn a maximum return. But as the focus has increased on sustainability, investors worldwide are resorting to smart investing strategies. In the current investment scenario—where environmental sustainability and corporate social responsibility are driving business decisions—investors place a great deal of emphasis on the environmental, social, and governance (ESG) rating of a company they wish to invest in.

Take a look how to easily automate, monitor and assess your ESG posture:

ESG criteria are becoming increasingly popular amongst investors to evaluate the ability of companies to be stewards of nature, managers of social relationships, and trailblazers of excellent leadership. Now, ESG companies that uphold the principles of smart investing while catering to the needs of socially conscious investors are seen outperforming their peers in a big way, especially after the COVID-19 pandemic.

In 2020, the year of extreme and dramatic changes trigged by the pandemic, the median total return on equity funds of ESG companies focused on sustainability exceeded that of their peer funds by 4.3 percentage points. Funds of such companies provided better returns almost every month of the year. Their focus on sustainability is essentially indicative of the quality of their board and management.

Low beta, high quality

The companies with higher ESC ratings fell and rose less dramatically as the markets collapsed and recovered sharply in April 2020 than those with lower ESG ratings. The pattern suggests that stocks of such companies also have a low-beta-high-quality factor. Such funds are also less affected by volatility in the larger market.

There’s been a significant rise in the popularity of ESG investing. It is mainly triggered by fears of the global community over climate change. As such, socially conscious investors, especially millennials, now consider the impact of their funds as they have started investing. It’s crucial to note and understand that ESG risk is an investment risk; those firms that meet ESG standards are more unlikely likely to be sustainable enterprises.

Similar trends were observed when fixed income ESG stocks were analyzed from January to September 2020. The bonds of ESG companies with high ratings performed better on average than their lower-rated peers. The stocks of companies with an A-rated ESG score lost around 0.5 percent on average during the period compared to low-rated stocks, which lost 4.6 and 4.4 percent.

A peek into the future.

ESG and smart investing with a focus on sustainability are expected to grow. The attitude of retail investors towards sustainable investment has also been shifting. In the U.S., close to half of individual investors adopt sustainable investing. Also, 80 percent of asset-owner institutions are seen incorporating sustainability factors in their investment processes.

It’s also worth noting that the Institute for Sustainable Investing, in 2019, found that sustainable funds had larger market capitalizations on average and hold more stocks in companies that are considered growth stocks. Let’s not forget. Evolving regulations also lead companies to disclose their sustainability practices, providing investors with more data to understand ESG-related risks and growth opportunities. We can hope that the future of sustainability investing delivers on its promises and make a positive global impact in the times to come.

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