21st March 2023
In today's business world, integrating ESG (Environmental, Social, and Governance) considerations into a company's operations is now becoming essential in order to stay competitive and address societal challenges. However, starting an ESG program can be a daunting task.
Many companies face challenges such as a limited understanding of ESG, lack of resources, resistance to change, the complexity of ESG issues, and limited guidance and standards. In this article, I will explore how companies can overcome these challenges and begin their ESG program.
To initiate an ESG program, it can be challenging to know where to begin and how to take control from the start. One effective way to get going is to take inspiration from the United Nations' Sustainable Development Goals (SDGs) and follow these ten steps:
Conduct a materiality assessment to identify the sustainability issues most relevant to the company's operations and stakeholders.
Develop a sustainability strategy that aligns with the SDGs and sets measurable targets.
Establish governance structures and processes to oversee the sustainability program, including assigning responsibilities to specific individuals or departments.
Engage with stakeholders, including customers, employees, investors, and communities, to understand their expectations and concerns.
Identify and assess ESG risks and opportunities, including those related to environmental impact, social responsibility, and corporate governance.
Implement management procedures to monitor and track progress towards sustainability goals.
Incorporate ESG considerations into day-to-day business decision-making processes, such as investment decisions and supply chain management.
Measure and report on the ESG performance, using standard frameworks such as the Global Reporting Initiative (GRI) or Sustainability Accounting Standards Board (SASB).
Engage in partnerships and collaborations with other stakeholders to advance sustainability goals, including with NGOs, industry associations, and other companies.
Continuously review and improve the sustainability program, incorporating feedback from stakeholders and monitoring emerging ESG trends and best practices.
By following the above, you can not only start your ESG program but also take control from the beginning, ensuring that you are addressing the most relevant sustainability issues, setting measurable targets, engaging with stakeholders, and continuously improving your sustainability program.
This is where Regtick comes in. With our in-built library of regulation and best-practice workflows, you can quickly address your ESG requirements. Our health check will help you reveal key issues for you to address while our integrated PMO and MI reporting provides an out-of-the-box set of project tasks to follow. And all of this is supported by our embedded audit module that retains the required evidence for future regulatory inspection and reporting.
Ultimately, the success of ESG programs will depend on the willingness of companies to embrace it as a central part of their business model and to demonstrate a genuine commitment to sustainability and responsibility. By taking this step, companies can not only do their part to address the global challenges of our time but also position themselves for long-term success in a rapidly changing world.
Regtick is making available Regtick ESG Express as a free trial to enable you to get your program up and running quickly. To avail of this offer please click on: https://signup.regtick.com/register/apply
Thank you for reading.
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