Enhancing companies and funds reputations
An interview with Oriane Schoonbroodt, Co-founder and Executive Director of Label R, a company, which delivers an ESG and ethical certification to companies and funds.
Can you present Label R in a few words?
Label R is a Luxembourg based company providing a unique ESG and ethical certification for companies and funds. I have created it in 2015 with several partners active in compliance and audit with the intention of establishing a very strict methodology, in order to enhance companies and funds reputations, especially when they are active in sensitive and emerging countries. Over the years, we see that ESG and ethical strategies have become critical for companies and funds: we position ourselves as a trusted partners to help them structure and implement their strategies.
“Companies and funds understand the value of investing ethically”
Can you describe the certification process?
Companies or funds approach us for an initial assessment of their internal ESG processes. Depending on the client, this phase lasts between 1 week to 3 months, during which our partner, Sqope, perfoms a reputational due diligence. As soon as the initial assessment is complete, SGS examines both the documents submitted by the client and the report prepared by Sqope to draw a risk map of company or fund and publish a rating. From this point, there are two scenarios; If the company or fund is already up to the right standards, the process is completed by an onsite audit. If progress is needed, Label R helps them structure and implement a plan that will allow them obtaining the certification within 1 or 2 years.
How important is ESG today in the corporate world?
It is a growing trend as more and more investors require companies and funds to prove that they are applying the highest ESG and ethical standards. This cover anti-money laundering, anti-corruption and ethical financial practices. This trend is promoted by a fast-evolving global context, which evolves through new regulations, financial leaks and big headlines in the press. On one hand, the millennials are clearly active players of this new evolution and on the other hand companies and funds understand the value of investing ethically, not only for their clients, but also for their shareholders and employees. Many studies prove that the long-term return on investment is better when investment are ethical.