RFP0694 - ESG

2.0 STATEMENT OF WORK 2.1 Introduction AFSC is seeking a consultancy to support us as a strategic partner to assist in the proactive development of a collaborative Environmental, Social, and Governance (ESG) Framework. 2.2 Background AFSC currently does not have a documented ESG Strategy or Framework. While there are a number of activities occurring throughout AFSC that could align with the ESG pillars, they are happening in siloes and in an uncoordinated fashion. As a Crown Corporation, funded by both the Federal and Provincial government, falling under the Agriculture Financial Services Act, AFSC is in a unique position to require a bespoke strategy, distinct from what a federally regulated institution may require. AFSC intends to use a decentralized, collaborative ESG model, one that is supported by various areas of the organization. The Enterprise Strategy business unit will serve as the hub and accountability mechanism to ensure alignment of ESG activities with the corporate strategy. The successful vendor will work primarily with the Vice President, Enterprise Strategy & ESG. 2.3 Objectives AFSC wishes to secure a partnership with a qualified, experienced, effective firm to assist us in developing and “right sizing” an ESG Strategy and Framework. 2.4 Duration The initial term of engagement is intended to be approximately 3 months, targeted for January to March 2024, with an opportunity to contract with the successful vendor (for future phases of ESG and Climate Risk activities) for up to 3 additional years. The contract may also allow for multiple year extensions, and the successful Vendor may be AFSC’s preferred Vendor for these services until such time as AFSC’s business needs change. 2.5 Requirements The scope of this work is to support AFSC in developing the overarching ESG Strategic framework that it can align to operationally – a large focus of the engagement will be on developing material and deliverables to support AFSC’s ESG and Climate Risk journey. • Develop a collaborative governance framework for ESG at AFSC – identifying key stakeholders, terms of reference and RACI. • Develop and expand upon relevant material topics – develop and execute a materiality assessment. • Identify any required reporting frameworks or standards that the corporation must adhere to, along with any that are recommended. • Develop a climate related risk log, along with recommended risk treatments (focusing on adaptation over mitigation), considering AFSC’s goals related to climate:  Better assess and understand risk exposure to environmental/climate-related risks  Demonstrate meaningful commitment to informed (science-based, macro, future-oriented) decision-making to clients, community, partners, and employees  Enable risk-informed decision making / direction setting for the organization  Early alignment with incoming (currently out of scope) government regulations • Through data and analysis, support AFSC in determining the organization’s opportunities/ risk related to materiality. Developing priorities and a roadmap on “what” to focus on first. • Development of a stakeholder communication plan, including establishing the “narrative” that AFSC will use to describe its ESG and Climate Risk adaptation activities. • It is anticipated that the vendor will also need to interview/ engage with the following business units (not intended to be prescriptive or exhaustive):  Risk, Legal and Compliance  Finance  People Services  Business Services (includes procurement and facilities)  Product Innovation  Corporate Brand & Communication Documentation At the end of the engagement, the following deliverables are to be provided to AFSC:  ESG Governance documents – stakeholder log, terms of reference, RACI  Materiality Assessment – document process, methodology and inventory of the questions asked in the materiality assessment for each stakeholder group (turnkey document allowing AFSC to replicate the process in future years), final report of findings and recommendations related to the materiality assessment. This deliverable should highlight for AFSC the organizations opportunities and risks related to materiality. Recommending priorities and a roadmap on “what” to focus on first.  Reporting standards and frameworks – report of which standards and frameworks were reviewed, recommendation for AFSC and rationale to support the recommendation.  Climate Risk Log – detailed listing of the climate related risks facing AFSC  Stakeholder communication plan – identifying the different personas requiring communications, key messages and should include an overarching “narrative” that AFSC will use to describe its ESG and Climate Risk adaptation activities. Narrative needs to be aligned to AFSC’s Strategic Plan and Brand identity. Further context and included for your review are the following Appendices: Appendix D – DEI Work AFSC Appendix E – 2021-22 Annual Report AFSC Appendix F – The Road Forward Strategic Plan 2023-28 AFSC Appendix G – FPT Policy Placemat Vendors must complete the “Vendor’s Response” column of the tables below, providing detailed commentary (including examples where necessary) to the corresponding column: Vendor Capability and Experience 35% Requirements Vendor’s Response: Provide a brief company history and overview of the Vendor as it applies to the content of the Competitive Bid. Within this summary, please include how many employees there are in the Vendor’s company. Describe corporate philosophies, values, and culture especially as they relate to the requirements of AFSC. Detail your experience developing an ESG and/or Climate Risk strategy with a Canadian institution, preferably a financial institution or Crown Corporation. Detail your experience in developing an ESG and/ or Climate Risk strategy in agricultural organizations, or organizations with no existing ESG position/ infrastructure. Detail your experience in developing, executing and analyzing a Materiality assessment. Demonstrate how your organization has committed to ESG – how are you measuring the ESG pillars, and please provide your most recent publicly available report. Indicate why the Vendor considers itself to be the “right” service provider and what key strengths it will bring to AFSC in the immediate and long term. Approach / Implementation 25% Approach - Methodology Vendor’s Response: Outline your methodology to accomplish this initial project. Provide your proposed activities and timelines from start to finish of this project. Describe your understanding of the project requirements along with what is expected from AFSC. Outline your approach to the Documentation deliverables for AFSC - i.e. - excel spread sheets, reports? Identify in detail any assumptions that have been made during the creation of your proposal to the scope identified. The Proposal must provide two project examples that demonstrate the Vendor’s ability to take ownership, accept accountability and deliver on commitments made and to “stand behind their work. Provide the Vendor’s approach to quality assurance, continuous improvement, and performance management processes, techniques, change control and tools. Resources 15% Key Personnel – In the table below, provide a list of each person, sub-contractor or partnership resource that will deliver any aspect of the service, along with an overview of the combined strengths and capabilities of the proposed team. RESOURCE RELATIONSHIP (EMPLOYEE, SUB-CONTRACTOR, PARTNER) ROLE CAPABILITIES Explain the role of each team member along with how each team member fits into the organizational structure. Your response should demonstrate education and experience directly related to each person’s role in providing the services, as well as outlining any specific area of expertise. Outline a human resources risk mitigation plan which will ensure an uninterrupted level of service throughout the life of the agreement. Vendors are requested to list/describe the roles/skills required of AFSC to ensure a successful engagement (if applicable). Detail your expectation for access to AFSC resources. Role Name AFSC Role Description Effort (Time Commitment) Value Add 5% Value Add Vendor’s Response: The Vendor may describe two (2) significant value-added services provided relative to the scope of work provided to other clients including the Vendor’s commitment for future support. The Proposal should contain a description of value-added services provided by the Vendor and the strategy that the Vendor would employ in proposing a similar type of service to AFSC. The Proposal must clearly outline if there are any additional cost for the value-added services Pricing 20% Please use the chart below (modify as needed) to outline your rates for this first engagement, and the first year of a resulting contract. Rates must be inclusive of all travel and expenses. Service/Resource/Project Role Fixed Hourly Rate (role) $ (role) $ (role) $ Using the rates specified above, and your estimated resource effort, please provide your estimated total cost for this first engagement? _________ What will be your rate increase year over year? Year two percentage _______ Year three percentage ______ Identify any other administrative fees or service charges, and indicate how you will be invoicing in detail, this may subject to change based on AFSC’s requirements. G. S. T. Certification Clause This is to certify that the services ordered or purchased are for the use of, and are being purchased by AFSC with Crown funds, and are therefore not subject to the goods and services and harmonized sales tax. 2.6 Disclosure While AFSC has not had a previous relationship with any vendors related to ESG, there are various vendors who have worked with AFSC on other matters. Through the normal course of providing services over the past few years, they may have acquired more knowledge about AFSC than the information provided in this document. Specific to ESG, over the past few months, AFSC accepted meetings with the following vendors to learn more about market offerings, or has attended their publicly available webinars: • Deloitte • Diligent • Encompass ESG Corporation • Marsh (and its subsidiaries) • Price Waterhouse Coopers Vendor(s) proposing an alternative to a Competitive Bid requirement must clearly denote each as an alternative and substantiate the merit of that alternative. Proposed alternatives must substantially meet the fundamental intent of the requirement