ESG: Establishing the Framework
Opthea – A Case Study
Today’s investors are looking for more than just operational performance, financial results and growth in their investment portfolio. They are now factoring in social values and risk management strategies to their investment considerations to develop a more comprehensive picture. There has been a growing expectation for businesses to demonstrate that they operate sustainably, reduce carbon emissions, make positive contributions to society, or speak out on issues of importance to investors, employees and customers. ESG reporting allows a company to explain its position on sustainability and demonstrate action and performance.
To help meet the growing demand from clients for tailored ESG reporting services, Collier Creative developed the Alliance initiative by bringing together three, well-established, Australian companies to support their needs. The Alliance, combining Collier Creative, Cress Consulting and Morell & Co, delivers specialised capabilities in sustainability, climate risk, water and stakeholder engagement supported by dedicated engineers, scientists, strategists, designers, digital developers and communicators across Australia and around the world.
In 2022, the Alliance assisted small-mid cap client, Opthea Limited with its inaugural ESG performance framework which was incorporated into its annual report to shareholders. The following case study summarises the three-phase approach taken, the solution provided, and the outputs delivered.
The opportunity
Opthea, one of Australia’s leading ophthalmic biotechnology companies, is currently in the clinical development phase for a novel therapeutic, that aims to improve vision and reduce retinal swelling in patients with eye diseases that affect the back of the eye or retina. Now listed on both the ASX and NASDAQ, Opthea recognised the enormous opportunity of communicating with current and prospective stakeholders on their ESG performance and risk management.
The challenge
Opthea faced the challenge of strengthening the storytelling of its positive impact to relevant stakeholders in a clear way that differentiates them from competitors. In response to this challenge, Opthea engaged Collier Creative and Alliance partner Cress to develop a comprehensive ESG position for the business. Opthea’s mission, grounded in developing innovative therapies to improve vision and enhance public health for a better quality of life, offered a strong foundation on which to build a robust ESG framework.
The analysis
To address this challenge, Cress initiated the study with a materiality assessment and stakeholder analysis. Developing a solid understanding of material issues was important for Opthea, to help:
An extensive list of potentially relevant topics for the biotechnology sector was identified. The analysis determined those ESG issues material to the business and those most significant to stakeholders. The assessment also included a detailed peer benchmarking analysis and ESG reporting gap analysis, resulting in the delivery of a strong initial ESG report, and ESG framework for ongoing and transparent assessment and reporting.
The solution
With Opthea’s key issues identified, a detailed and specific set of recommendations on how Opthea should articulate its response to each key ESG issue was tabled. This included both suggestions of the language that should be used when communicating its ESG strategy, as well as the actions and responses to each issue that Opthea should publicly disclose.
The next steps
Opthea’s future reporting should communicate and discuss its focused list of ESG issues alongside how Opthea is addressing them throughout its value chain. Meaningful ESG reporting at Opthea will require the definition of relevant and measurable metrics and targets that are regularly reported against to demonstrate consistent progress.
The solution
With Opthea’s key issues identified, a detailed and specific set of recommendations on how Opthea should articulate its response to each key ESG issue was tabled. This included both suggestions of the language that should be used when communicating its ESG strategy, as well as the actions and responses to each issue that Opthea should publicly disclose.
The next steps
Opthea’s future reporting should communicate and discuss its focused list of ESG issues alongside how Opthea is addressing them throughout its value chain. Meaningful ESG reporting at Opthea will require the definition of relevant and measurable metrics and targets that are regularly reported against to demonstrate consistent progress.
Alliance members
Collier Creative helps communicate business stories with singular, stand out creative ideas that enhance brand experiences, build reputation and value that speaks to customers, employees and investors.
Cress delivers expertise to help identify pathways to a more sustainable, secure future and can help you design and implement strategies to reduce risk and increase self-reliance. By working towards a more sustainable business model, we help identify opportunities to save costs and improve operational efficiency, performance and reputation.
At Morell & Co we help position your company as a long-term and trusted brand by building the bank of trust and effectively communicating the brand promise with business storytelling that has impact.
