Mahindra Group today (January 26, 2020) announced its commitment to implement the Stakeholder Capitalism Metrics of the World Economic Forum (WEF).
Mahindra Group today (January 26, 2021) announced its commitment to implement the Stakeholder Capitalism Metrics of the World Economic Forum (WEF). Till now, as many as 53 business leaders, including members of the WEF and its International Business Council (IBC) have committed to implement the core Stakeholder Capitalism Metrics.
Commenting on the commitment to implement the Stakeholder Capitalism Metrics, Mahindra Group chairman Anand Mahindra said in a statement, “Purpose-driven businesses are likely to be more resilient than those that do not embrace people and planet. Investors recognize that. We support the World Economic Forum’s effort to standardize reporting through the development of comprehensive ESG metrics and believe that this will be a step forward for a sustainable world.”
What is Stakeholder Capitalism Metrics?
Stakeholder Capitalism Metrics (SCM) are a set of environmental, social and governance (ESG) metrics and disclosures released by the World Economic Forum (WEF) and its International Business Council (IBC). The SCM measures the long-term enterprise value creation for all stakeholders.
The Stakeholder Capitalism Metrics have been drawn from existing voluntary standards, offering a core set of 21 universal, comparable disclosures that are focused on people, planet, prosperity and principles of governance. These are considered to be most critical for business, society and the planet.
The SCM strengthens the ability of companies and investors to benchmark progress on sustainability matters. Apart from Mahindra, some other companies that have committed to SCM include Dow, Unilever, Nestlé and Sony. The have committed to:
- Reflect the core metrics in their reporting to investors and other stakeholders (e.g. annual report, sustainability report, proxy statements, or other materials) by reporting on the metrics most relevant to their business or briefly explaining why a different approach is more appropriate
- Publicly support this work and encourage their business partners to do so
- Promote the further convergence of existing ESG standards, frameworks and principles to support progress towards a globally accepted solution for non-financial reporting on common ESG metrics
“Stakeholder capitalism becomes now really mainstream,” said Klaus Schwab, Founder and Executive Chairman, World Economic Forum. “The public commitments from companies to report not only on financial matters but also their ESG impacts are an important step towards a global economy that works for progress, people and the planet.”
In a statement, Mahindra Group said it has been publishing Sustainability Reports based on Global Reporting Initiative (GRI) framework for the last twelve years. GRI is considered the gold standard globally on reporting. Mahindra & Mahindra has also been publishing Integrated Report on the International Framework for the last three years, it said.