“We believe that an economically efficient, sustainable global financial system is a necessity for long-term value creation. Such a system will reward long-term, responsible investment and benefit the environment and society as a whole.” (PRI, Mission Statement)

Investors are increasingly moving beyond financial metrics to assess a company’s value, now incorporating environmental and social factors that impact long-term sustainability. Managing negative externalities is crucial, as poor performance on social metrics can jeopardize a company’s social license to operate among stakeholders, including investors, financiers, employees, and customers. Growing evidence shows a correlation between financial performance and social responsibility, particularly in diversity, making it a fiduciary duty for investors to consider these factors. By integrating social and diversity metrics, investors can not only grow the wealth of their beneficiaries and clients but also make a positive social contribution.

There are several reasons for the increased focus on Social & DEI performance within the financial sector, however, these can be grouped into four main categories:

Supply chain risk assessments have undergone a significant transformation over the years, reflecting a broader understanding of the myriad of factors that can impact the stability and integrity of global supply networks. Traditionally, these assessments primarily concentrated on financial and geopolitical risks, focusing on the stability of supply chain partners, currency fluctuations, and the impact of political instability or regulatory changes in key regions. However, as awareness of sustainability issues and corporate social responsibility (CSR) has grown, there has been a marked shift towards incorporating environmental and social risks into these evaluations.

This evolution mirrors a global trend towards more ethical and sustainable business practices, driven by both regulatory requirements and consumer demand. Companies now routinely consider the environmental impact of their supply chains, including carbon footprints and resource depletion, as well as social factors like labor practices, human rights, and supplier diversity. This holistic approach enables organizations to not only mitigate a broader spectrum of risks but also to align their operations with the values of a more conscientious market, enhancing their resilience and competitive advantage in a rapidly changing world.

Denominator’s dataset helps corporates analyze all their suppliers globally, large and small, on their DEI and social footprint in accordance with a standardized framework, thereby circumventing disparate standards, certifications, and data availability. This ultimately enables corporates to scale their social impact significantly while minimizing their operational risk.

Diversity, Equity, and Inclusion (DEI) form fundamental pillars for a thriving corporation. Elevated levels of DEI not only enhance internal productivity and attract top talent but also play a crucial role in representing consumers and fostering customer loyalty. Additionally, robust DEI commitments are instrumental in capturing investor interest.

In today’s corporate landscape, Diversity, Equity, and Inclusion (DEI) practices are essential for fostering innovation and creating a dynamic workplace environment. A diverse team brings a variety of perspectives and ideas, driving creativity and problem-solving capabilities. By promoting inclusive work conditions, companies not only attract top talent from a broad range of backgrounds but also enhance employee satisfaction and retention. Furthermore, implementing robust DEI practices ensures that businesses align with the growing consumer and stakeholder expectations for responsible and ethical operations. This commitment to DEI reflects a company’s dedication to social responsibility and positions it as a leader in sustainable and forward-thinking business practices.