Embedding an integrated approach finalists 2019

ABN AMRO, (The Netherlands) 

Summary of entry 
In 2018, ABN AMRO, a Dutch bank, announced a refreshed strategy and new purpose, ‘Banking for better, for generations to come’. This new purpose is about sustainability in its fullest form. It is about creating long-term value and positive impact for all its stakeholders. This is the tangible result of its integrated approach and the outcome of a longer journey to stimulate integrated thinking within ABN AMRO. Integrated thinking was initiated by the strategy and sustainability department together with the finance department. ABN AMRO has created a bank-wide integrated thinking community with representatives from all business lines and functions. 

Judges’ comments 
ABN AMRO, through its pioneering framework, is ensuring their value drivers are front and centre in their strategy and risk management. Embracing integrated thinking and reporting is clearly helping them to live their purpose. 

Landsec (Land Securities Properties Ltd), (UK)

Summary of entry 
As an owner and operator of property, Landsec is exposed to both risk and opportunity from climate change. To address this, Landsec made a public commitment to implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). This led to extensive research, financial modelling and scenario analysis, and resulted in financial reporting against the TCFD recommendations in its 2019 Annual Report. As well as providing investors with transparent climate-related financial risk information, Landsec now uses its research to inform property investment, development, operational and divestment decisions in an integrated way. Leadership on climate risk supports Landsec’s ambition to act early, positioning its business for the conditions ahead, and taking a long-term view of value creation and protection. 

Judges’ comments 
The work Landsec has done on TCFD and how that has been embedded across the organisation to drive decision-making is to be commended. Their consideration of environmental and climate change implications is obviously driving benefits.

SSE plc, (UK and Republic of Ireland) 

Summary of entry 
SSE, an energy company in the UK and Ireland, has set four fundamental goals for 2030 which put sustainability at the heart of its business strategy and the financial objectives of the group. These goals are not just important to SSE, they matter to everyone and are directly linked to the four United Nations Sustainable Development Goals (UN SDGs) that are most material for SSE: 

  •  Affordable and Clean Energy – SDG7 
  •  Decent Work and Economic Growth – SDG8 
  •  Industry, Innovation and Infrastructure – SDG9 
  •  Climate Action – SDG13 

The successful fulfilment of these goals will advance the company’s vision of being a leading energy provider in a low-carbon world. 

Judges’ comments 
SSE accepts the responsibility of its sector in decarbonising the economy. It has placed the Global Goals at the centre of its strategy. This is integrated across the business with clear targets linked to remuneration and it has raised ESG-linked finance to support the achievement of its goals. 

Stora Enso, (Finland) 

Summary of entry 
Stora Enso is a leading provider globally of renewable solutions in packaging, biomaterials, wooden constructions and paper. Sustainability is a core element in its strategy and integrated in everything it does. Its sustainability agenda encompasses the social, environmental and economic responsibility of its operations throughout the value chain. The agenda is based on the classic triple bottom line model. Stora Enso has the long-term aim of securing funding partners that have sustainability as a fundamental part of their agenda. It has issued a green bond (SEK 6bn) to finance an acquisition of sustainably-managed and certified forest in Sweden. Additionally it has incorporated CO2 reduction targets as a pricing element in its revolving credit facility. 

Judges’ comments 
The judges were impressed with the maturity of Stora Enso’s approach to doing business in a sustainable way, which is based around its integrated economic, social and environmental agenda. Sustainability is embedded in all financial processes and the quality of its non-financial information, which is subject to the same rigour as financial information and reasonably assured, has helped in raising sustainable finance.

Tata Consultancy Services Ltd (TCS), (India) 

Summary of entry 
TCS is an IT services, consulting and business solution provider. It’s commitment to create long-term sustainable value stems from Tata Group’s abiding concern for society and environment. A concern captured in the words of the Founder, Jamsetji Tata: ‘In a free enterprise, the community is not just another stakeholder in our business, but it is in fact, the very purpose of its existence.’ At TCS, sustainability is embedded into everything it does. The guiding principle is ‘Impact through Empowerment’, where outcomes and measurable impacts are delivered through a long-term sustained effort. 

Judges’ comments 
The organisation’s guiding philosophy of focusing on planet, profit and people shone through the entry. The finance team is clearly involved in that philosophy and takes pride in the business and what it contributes socially. 

Tesco plc, (UK) 

Summary of entry 
Tesco plc is a UK-based multinational retailer. ‘Every little help makes a big difference’ is a core value at Tesco. It drives what it does every day by focusing on its people, its products and its places – the three pillars of the Little Helps Plan. These pillars help Tesco to manage risks and opportunities from some of the key global issues facing the industry, from climate change to food waste. The Little Helps Plan is fully integrated into business plans across the group and every market has a clear three-year roadmap, as part of the financial long-term planning process. 

Judges’ comments 
Through its Little Helps Plan, Tesco is leveraging its influential position with consumers to shift behaviours and it is gaining the attention of mainstream investors and analysts. The finance team has clearly been an integral part in driving this forward and ensuring quality of data.