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Ushma Pandya shares a vitaly relevant post that can help your company develop an ESG strategy.

ESG stands for Environmental, Social & Governance and lately it is the “it” word in the business community. But how does one go about developing an ESG strategy?

ESG framework is a set of standards used by investors to evaluate companies, usually for investments. But it is also a way for companies to communicate with the non-finance community on their environmental stewardship, their relationship with employees, suppliers, customers and communities in which they have operations and the governance structures they have put into place to ensure accountability, transparency and integrity. Depending on your company’s industry, operating model and geographic location, the factors within the E, the S and the G will vary.  

Environmental: Environmental factors include how a company mitigates its greenhouse gas emissions, whether the products the company creates are sustainable, if it uses natural resources efficiently, how it deals with recycling and waste and the end-of-life options for its products.  

Social: The social component includes factors both inside and outside the company. Does the business support the communities in which it operates? Does it carefully consider diversity and equal employment opportunity in its hiring? Does the company prioritize human rights everywhere it does business?

Governance: Governance refers to the company’s leadership and board, including whether executive pay is reasonable, if the company’s board of directors is diverse and whether it’s responsive to shareholders.  

 

Key points include:

• Educating the senior team
• Competitor analysis
• UN Sustainable Development Goals

Read the full article, ESG: What does it mean and what should your company do if it does not have an ESG Strategy, on LinkedIn.