Mindful Business Models Impact Goal considers the ability of companies to incorporate Environmental, Social and Governance (ESG) elements into their long-term planning, including the transition to low carbon and climate-friendly economies and the serving of underrepresented populations. Considerations include the handling of a company’s assets and their impact on the environment and society, and management’s willingness to abide by legal and regulatory requirements while respecting the views of investors, customers, and society at large.
When scoring a company on the Mindful Business Models goal, the following underlying Sustainability Accounting Standards Board (SASB) factors are considered:
- Business Model Resilience: Management introduces ESG into LT business model planning: transition to low carbon, growth, and creation of new markets among underserved and underrepresented socio-economic populations, ability to adapt, and risk to business models.
- Physical Impacts of Climate Change: Ability to manage E risks to their assets or services, also socio-economic consequences of failing to incorporate climate change into products and services, and the ability to adapt and perfect products & services.
- Management of the Legal & Regulatory Environment: What is the approach to engage with regulators in cases where there is a conflict between corporate and public interests and impact on social relations, lobbying, overall resilience on the regulatory environment for business competitiveness and ability to comply, alignment of management and investor view of regulatory environment and compliance at large.
The SASB is a non-profit organization founded in 2011 to help businesses and investors develop a common language about the financial impacts of sustainability. To learn more, see https://www.sasb.org/about/
To learn more about the Impact Scoring methodology, see How are Impact scores calculated?