ESG (Environmental, Social, and Governance) is a relatively new area of interest within the corporate landscape. And as such, there isn’t yet a single global standard for it. The solution? A well-structured GRC strategy. Read all about how you can use it to seamlessly streamline your ESG dashboard.
ESG – Environmental, Social, and Governance – is pressuring organizations from every angle. Investors are making investment decisions based on the ESG practices of companies. Individual directors on boards are being voted out based on ESG metrics. Employees are making decisions on whom they work for based on shared values, as well as clients/customers. And regulators are taking focus on ESG, the most recent being the SEC with its proposed disclosure requirements for climate change.
Organizations around the world and across industries are challenged to define, implement, and report on ESG. The goal is to be an organization of integrity to ensure that the values, ethics, statements, commitments, relationships, and transactions are a reality in practice, process, relationships and transactions.
However, understanding ESG is complex. As a guide, but not exhaustive, ESG dashboard covers:
- Environment. Climate change, natural resource utilization, pollution and waste, biodiversity, certification and carbon footprint/emissions.
- Social. Child labor, forced labor, socio-economic inequality, privacy, personal data use, diversity and inclusion, working conditions, health and safety and product liability.
- Governance. Corporate governance, fraud, anti-bribery and corruption, anti-money laundering, internal controls over financial reporting, security, corporate conduct and behavior, anti-competitive practices, tax transparency, ownership and structure.
The challenge is that there is no single global standard for ESG. There is some reporting guidance – the most popular is the Global Reporting Initiative (GRI) – and what is now the Value Reporting Foundation (the merger of the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB)).