Leading FIs' & real-economy large Corporations' Systemic Change for their Just NZ Transition through innovation at scale at the pace they must, leading to their long-term sustainability and with the measurement framework designed, enable disclosure of universal ESG metrics that can solve Greenwashing
At the core, these entities' systemic change is based on the concept of their long-term sustainability. An entity becomes so when it contributes directly or indirectly towards the bigger ecosystem it is a part of. It has an outward look, not just inward. It is multi-stakeholder focused, that is to say, it contributes towards its customers, employees, suppliers, environment, society, and, of course, its shareholders directly or indirectly. The positive presence of such an entity is felt by the ecosystem and it becomes robust and thereby sustainable for the long term. These non-financial outcomes do not come from a profit mindset but the entities having a purpose, a higher purpose beyond just making a profit. The std. Transformation Methodology CTM (Change thru Movement) embodies these concepts and includes a design to make it objective and measurable, leading to the disclosure of universal ESG measurements for these entities.
So, how does this systemic change get deployed?
It is done through two mechanisms -
First - the standardised NZ Transition Plans, which are nothing but the standardised Project Plans with variations for the leading FIs and real-economy large corporations to deploy the standardised Transformation Methodology (CTM) Change thru Movement with its two halves the Movement and the Objectivity. The Movement includes Purpose, shifting mindset and culture, innovation at scale, a constant pipeline of self-initiated impactful projects and their non-financial outcomes, and qualitative measurements embedded in it that become the qualitative part of universal ESG metrics. The other half brings more objectivity into it leading to the disclosure of universal ESG metrics (quantitative) that can solve the problem of Greenwashing. It is designed through the entity's governance framework for its self-initiated Projects' and their non-financial outcomes', entities’ periodic relative focus across 16 SDGs - their ideal, actual and targeted values, entities’ periodic focus on their standardised sectoral impact parameters - their baselines (directly/as-financed) and targets in alignment with their sectoral pathways (directly/as-financed), and the mechanisms for universal ESG metrics. CTM has provisions to incorporate requirements, recommendations and guidelines from GFANZ, TPT and the likes promoting Transition Plans; leverage on standardised sectoral Impact Parameters (e.g GHG reductions for SDG13 for large corporations) from applicable standardising Bodies or as decided, leverage on NZDPU and SBTi, as well as include any expert knowledge as needed.
Additionally, when it is a corporate or investment bank, the other mechanism is the regTech product CBD (Compliance by Design) for these banks that further enables them to deliver towards their purpose more powerfully and it sits outside of the Std. NZ Transition Plans. It solves their challenges in complying with regulations, solves their core issues of data silo, measures credit risk and compliance risk more accurately and discretely, integrates corporates' ESG data alongside their financials in measuring their creditworthiness, brings more agility in banks' processes, creates a bank-wide MIS etc. and thereby making the banks more robust, clean, purposeful and sustainable for the long term.