Achieving ESG compliance can be a challenge.
Today more than ever before, companies are being pressured by the See-Through Economy and emerging federal regulations to determine how they can justify ESG status and sustain their disclosures from the SEC’s scrutiny on misstatements. But many people are struggling to find a way to achieve ESG in a meaningful way (that is, going beyond saying “we recycle”).
What is Environmental, Social & Governance Compliance?
Environmental, social and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors, as well as federal regulators like the SEC, use to screen potential investments and audit for compliance.
An ESG Program specifically addresses the following areas:
Environmental criteria consider factors such as carbon emissions, water and waste management, raw material sourcing and climate change. Social criteria examine diversity, equity and inclusion, labor management, data protection and community relations. Governance criteria deals with a company’s leadership, executive pay, audits, internal controls, board governance, business ethics, intellectual property protection and shareholder rights.
Find Out More: What Is ESG?
Why is ESG important?
According to a recent Harvard Law report, companies investing in ESG initiatives are now seen to be “ahead of the pack, and in prime position to utilize their reputations to garner greater mainstream buy-in towards sustainable business practice. As such, 2021 offers responsible investors an opportunity to truly live up to their potential as part of their business strategy in aiding in the delivery of a socially and environmentally sustainable global recovery.”
As a risk professional, if ESG is not something you’re already prioritizing at your organization today, we hope to put it on your radar with this comprehensive checklist. Download your free copy using the form on this page, and learn why it’s important to incorporate ESG best practices to create an ESG Bowtie across your enterprise, as well as associated action items for becoming ESG compliant.
Find Out More: Why Is ESG Important?
Utilizing an ESG Solution
By utilizing ESG software you can put your organization in the best position possible in regards to corporate social responsibility and to achieve ESG and sustainability targets.