Environment, Social, Governance
Embedding ESG best practice
Today, more than at any other time, corporations need social legitimacy to operate. The three pillars of ESG – Environmental, Social, Governance – require companies to exercise greater scrutiny and to conduct their businesses sustainably and responsibly. ESG aspirations (and compliance to these) are an increasingly important metric for investors and a broad range of stakeholders whose expectations continue to increase.
Building your ESG narrative means articulating what you are prioritising and why. Many companies ask themselves, 'what are the standards we should be looking to when setting the bar on ESG issues?' Fortunately, there is a clear answer to that: international law and soft law (denote agreements, principles and declarations that are not legally binding) standards.
Following a commitment to align with ESG-related international laws and standards, the next question is how to best shape a leading ESG risk and compliance culture? Embedding ESG means anchoring your best practices and standards across a broad range of areas.
Key steps for fostering best practice include:
- Thorough research and analysis to review current practices in place
- Assessing any gaps and risks
- Refreshing or creating ESG policies and redrafting commitments