🪴 Maixnor WU

L1 SRSA

Nov 04, 20253 min read

  • Auditing

  • cash flow vs earnings

    • cash flow = hard facts
    • earnings = matter of opinion

  • Incentives

  • CBAMslides 1 16

  • Consumers are not paying extra for ecological products

    • expected ecological consumer behavior did not emerge
    • not true for textiles or wood products
    • maybe true for small amounts - but not driving any business
    • slides 1 17

  • circular economyslides 1 18

  • standardization and certificationslides 1 19

  • Startup Cash Flow scheme

  • Green vs Green

CSR Reporting Key Features

slides 1 24

  • difference between “ESG performance” and “ESG reporting”

Effects of CSR Reporting

  • enhanced transparency and accountability
  • improved stakeholder relationships
  • reputation and brand enhancement
  • operational efficiency and cost savings
    • is already captured by the companies themselves - not necessary to be included in CSR
    • resources optimization
    • innovation stimulation
  • risk management
    • not driving business actively → more of a hygiene factor → Herzberg Theory
    • identifying risks
    • regulatory compliance
  • access to capital
    • no tangible difference in cost of capital based on ESG score
      • no penalties yet based on ESG score
    • impact on future cash flows → future customers care (hopefully) more about sustainability
    • sustainable financing
    • lower cost of capital
  • competitive advantage
    • market differentiation
    • supply chain preference
  • influence on corporate strategy
  • regulatory and compliance benefits
    • preparedness for regulations
    • policy influence
  • employee attraction and retention
    • workforce motivation
    • talent acquisition
  • challenges and costs
    • resource allocation
    • increased scrutiny
    • disclosure of sensitive information
  • stakeholder pressure and activism
    • investor activism
    • management accountability
  • legal and ethical compliance
    • companies are not ethical by definition - they want to make money
      • after Kant - moral = no goal
    • the tone at the top is very important
    • ethical standards
    • legal protection
  • global standards alignment
    • international recognition
    • cross-border operations
  • performance measurement and improvement
    • help by LLMs → turning qualitative into quantitative
    • benchmarking
    • continuous improvement

Reptation

  • reputation is most important good
    • activism and public opinion (also through share value) can build pressure - legislation not so much

Official Stuff todo find name

Supervisory Board and Audit Committee

todo find title

slides 1 36/37

  • difference assurance providers and auditors
    • assurance providers are just doing quality assessments, not doing any financial reporting
    • handing out certifications, no financial stuff
    • assurance providers … technical
    • auditor … financial
    • all technical should also be seen from a financial perspective

Internal Audit Department

  • slides 1 38
  • external auditors - independence = internal audit department (but more expensive)
  • making sure that information they get is reliable

ESG Rating Agencies

  • slides 1 39
  • ESG rated funds and ETFs might have poorer performance since the information analyzed is new and interpretation is not yet at the level of the financial information interpertation
    • financial information is also “uncertain” - just like ESG data
    • with time the ESG funds may be equal if not surpass e.g. the SnP 500 since the ESG information may be analyzed better

Regulatory Authorities

slides 1 40

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