Every issuer is on its own ESG journey, regardless of whether the firm is disclosing ESG and sustainability reports today. As ESG initiatives and decision-useful reporting continue to gain importance, many C-suite and boards of directors are truly starting to pay attention. The power of ESG is only beginning to be unlocked as companies realize ESG risk equates to financial risk.   Ownership of ESG and sustainability should reside at the top of any company with full support for the CEO and the board. 

The Five Things Every Private Company Should Know

Private companies are not required to make specific Environment, Social and Governance (ESG) disclosures. Why, then, do so many of them dedicate substantial time and resources to these issues?

DFIN has had quite a week. On Wednesday, the company announced its quarterly financial results – highlighted by a nearly 28 percent growth in our software solutions sales. You can read the press release here.

DFIN Supports Reintroduction of the Financial Transparency Act (FTA) to Help Bring Financial Transparency to Financial Markets and Foster Economic Growth and Capital Formation for Industry

I’ve been in the financial industry a long time. Some may disagree, but I believe in transparency. I believe it enables businesses, organizations—and governments—to work better, together.

With the tragic Covid-19 pandemic since last year, the emergence of remote-based work is now fully upon us. Like any working environment, this “new normal” has its plusses and minuses. Viewing the glass half-full, remote work has allowed employees the chance to spend less time commuting and more time on productivity. On the other hand, it can be difficult to achieve the same level of personal camaraderie amongst a project team, for instance, when all of its members are physically separated. That lack of personal face-to-face time has now been supplemented through modern technology.

Craig Clay, president of global capital markets at Donnelley Financial Solutions (DFIN), a Chicago-based financial compliance company, speaks with Acuris Capital Intelligence about virtual data rooms—one of their core products—post-COVID-19 as well as its partnership strategy.

Interview by Rachel Stone 

Q. What has changed in the M&A process during the pandemic? 

The coronavirus pandemic has disrupted trading relationships worldwide – and as a consequence, enterprise contract review, negotiation and renegotiation of contracts are taking place on a massive scale. Donnelley Financial Solutions (DFIN) was invited to participate in an international conversation to address the challenges and opportunities of enterprise contract management during and beyond the COVID-19 pandemic.

Donnelley Financial Solutions [NYSE:DFIN], a risk and compliance solutions company, could seek partnerships to further build out its technology offering, said Craig Clay, president of global capital markets.

The Chicago-based company could turn to partnerships rather than acquisitions as assets can be “pretty expensive,” Clay said. On its path to becoming a one-stop shop for transactions, it could, for instance, consider partnering with a market leader in US Food and Drug Administration (FDA) approvals, he added.

The adoption of technology for M&A due diligence has already been on the rise since the pre-Covid times. The Covid-19 global pandemic has forced dealmakers globally to accelerate the adoption of technology such as drones, cloud-computing and AI to enable virtual due diligence. A growing number of M&A professionals understand and appreciate the benefits of technology for their transactions, and advanced technologies such as cloud-based solutions is now allowing 24/7 access to crucial deal documents from anywhere in the world.

The Sustainable Accounting Standards Board (SASB) and the Task force on Climate Related Financial Disclosure, (TCFD) are fast becoming the standard and framework for reporting Environmental, Social and Governance data to stakeholders including customers, employees, suppliers, communities and regulators.

Human capital resources, climate change and sustainability reporting are critical topics this year across a diverse group of stakeholders including investors, employees, customers, communities, and regulators.