The function of any integration strategy is to allow for a smooth juxtaposition of a foreign entity into a current operation. When organizations have a smooth process laid out, investors and owners can start see how other concepts can be addressed to boards and management so a larger and more diverse integration among concepts can take place.
“I think the quest for gender parity should be based on the starting point of competence and consequence for the company and for the investor,” explains Hasselgren. “Once you have identified the skill set needed to govern the company and its successful development, you can credibly argue with ESG as a basis, that diversity and gender parity are an optimal solution over time.”
She continues, “This, I believe, is a matter that clearly shows how ESG has developed into a power issue that reaches beyond the assessment of an individual company in your investment portfolio.”
Tying it all together, investor-led ESG efforts in the global marketplace commence and positively impact global political agendas, like The Paris Agreement.
“I would say that the typically investor-led ESG efforts can have major political significance. This is because an increasing number of investors and asset managers today initiate and implement climate-influencing investment strategies in line with the Paris agreement,” says Hasselgren. “Perhaps this may mean that the worst fears of a failed Paris agreement can be mitigated. It is probably not wrong to argue that ESG and investor initiatives today can have a major impact on people as well as the environment.”
These initiatives by investors can then lead to an incorporation of a global practice. If it can be argued that ESG integration can increase the valuation of an organization, it could also be argued that a global integration would have a similarly positive effect on the world.
She continues, “Moreover, scientists and their advocacy are likely to play an increasingly important role for the priorities that investors and asset managers need to make. E.g., by arguing how to best reduce the risk of accelerating climate change and pouring energy cost.”
Hasselgren will be a moderator for the Gender Parity on Boards: A Comparative View from Around the World discussion at the ESG Integration Summit on Aug. 29 in Stockholm, Sweden.