ENVIRONMENTAL, SOCIAL & GOVERNANCE
The basis for the formation of Experiential Equity is to drive sustainable development in the live entertainment industry and beyond. Our focus is to invest in companies that are being developed to address current ESG issues.
ESG impacts for live entertainment are as follows:
- Environmental Impact: Live entertainment events, such as concerts, festivals, and sporting events, can have a significant environmental footprint. This includes energy consumption, waste generation, water usage, and transportation emissions. Companies in the live entertainment sector can focus on reducing their carbon footprint by adopting sustainable practices, such as using renewable energy sources, implementing waste management strategies, and promoting responsible transportation options.
- Social Responsibility: Live entertainment companies have a social responsibility to ensure the well-being and safety of their employees, artists, and audiences. This includes providing fair and safe working conditions, promoting diversity and inclusion, and supporting local communities. It also involves addressing issues like human rights, labor practices, and public safety. Companies can demonstrate their commitment to social responsibility by implementing policies and practices that prioritize the welfare of all stakeholders.
- Audience Engagement: Live entertainment companies have a unique opportunity to engage with their audiences and raise awareness about important social and environmental issues. They can use their platforms to promote positive messages, encourage sustainable behaviors, and support charitable causes. By leveraging their influence, these companies can inspire and mobilize their audiences to make a positive impact on society and the environment.
- Governance and Transparency: Strong governance practices are crucial for ensuring ethical conduct, accountability, and long-term sustainability within the live entertainment industry. This includes having transparent decision-making processes, effective risk management, and clear guidelines for responsible business practices. Companies can establish strong governance frameworks and engage in regular reporting to demonstrate their commitment to ethical behavior and stakeholder value creation.
- Ethical Sourcing: Live entertainment companies rely on a vast array of suppliers and contractors for various goods and services. It is important for these companies to ensure that their supply chains align with ESG principles. This involves assessing and monitoring suppliers’ practices to ensure they comply with ethical standards, such as fair labor practices, environmental sustainability, and human rights.
Overall, the key points of ESG for live entertainment revolve around minimizing environmental impact, prioritizing social responsibility, engaging with audiences on important issues, practicing good governance, and ensuring ethical sourcing throughout the supply chain. By integrating these principles into their operations, live entertainment companies can contribute to a more sustainable and responsible industry.
At Experiential Equity, we have referenced many ESG frameworks for guidance, foremost are Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB). For our operations, as opposed to our portfolio companies, we will focus on SASB for our primary guidance and reporting framework.
Purpose of SASB Standards (SASB Standards)
The SASB’s use of the term “sustainability” refers to corporate activities that maintain or enhance the ability of the company to create value over the long term. Sustainability accounting reflects the governance and management of a company’s environmental and social impacts arising from production of goods and services, as well as its governance and management of the environmental and social capitals necessary to create long-term value. The SASB also refers to sustainability as “ESG” (environmental, social, and governance), though traditional corporate governance issues such as board composition are not included within the scope of the SASB’s standards-setting activities.
Below listed are the industry specific SASB Standards for capital advisory of which Experiential Equity is committed to measuring, monitoring and reporting.
- Employee Diversity & Inclusion
- Incorporation of Environmental, Social, and Governance Factors in Investment Banking & Brokerage Activities
- Business Ethics
- Professional Integrity
- Systemic Risk Management
- Employee Incentives & Risk Taking
These SASB Standards will be measured with the metrics provided in the associated SASB Standard.
