Forecast 2021: The “S” in ESG, spotlight on societal investments
In our Forecast 2021 podcast series, we’re focused on preparing you for the year ahead by offering insights to help you better understand and manage some of the opportunities and challenges that your company might face—think policy, technology, and other big picture topics.
This week, we conclude our deep dive into ESG by focusing on the “S,” or social, initiatives. Heather Horn sits down with Aaron Gilcreast, PwC’s Global Valuation Leader, and Andreas Ohl, a partner in PwC’s National Office, to look at how companies are rebalancing their strategy to address societal challenges and building measurement frameworks that help prioritize and report on these societal initiatives.
* *1:05 - Overview.* We begin by highlighting a few big societal challenges—from globalization impacting supply chains to employee wellness and satisfaction—and how the companies that work to address these matters gain a competitive advantage in the marketplace.
* *4:14 - Value creation vs. value destruction. *To calculate ROI on societal investments, organizations need to begin thinking about the measurement of these intangibles, which is part of a disciplined capital allocation process and robust reporting.
* *10:44 - The time is now. *The momentum behind ESG is powerful as a result of increasing interest from investors and consumers. But it’s good for the company too. We look at the brand-enhancing benefits of translating intangible attributes into quantifiable metrics.
* *20:44 - Global challenges. *We talk through some of the challenges in executing and reporting on societal initiatives faced by companies with a global footprint.
* *22:59 - Key takeaways. *Companies have a role to play in proactively addressing societal issues, but they must be disciplined to build resilient assets and maximize value.
Want to learn more about ESG? Check out our C-suite summary, Making sense of ESG.
Aaron Gilcreast is the PwC’s Global Valuation Leader. His professional services career in finance, M&A, and corporate strategy spans 25 years. In his concurrent role as leader of PwC's Global Valuation & Business Modeling practice, Aaron is responsible for its overall vision, strategy, and operations.
Andreas Ohl is a partner in PwC's National Office where he focuses on mergers and acquisitions under US GAAP and IFRS. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's In-Process R&D guide, and has served as a member of the FASB's Valuation Resource Group.
Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With nearly 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.