ESG – Environmental, Social, Governance
Emergence of ‘ESG’
Many companies are moving from the old model of CSR to ‘ESG’ – Environmental, Social, Governance. CSR is more of an internal mandate and external narrative and actions. ESG is the measure of those actions and a prediction on how it will effect future performance.
It has its foundation in the finance sector, used by investors to evaluate corporate behaviour and to determine the future financial performance of companies based on these environmental, social and corporate governance measures.
We can predict that this ESG measure will be applied to all organisations going forwards and will become the barometer many use to decide on funding, sponsoring, partnering or participating.
The difference is metrics
Rather than producing impressive-sounding rhetoric, ESG demands metrics.
Connecting ESG and your sustainability programme
If you are implementing a rigourous approach to sustainability management, and being an authentic corporate citizen with great social responsibility, engaging stakeholders, defining your goals and measuring and disclosing your impacts and results, then you are well on your way to having an ESG structure that you can share with your potential funding partners, investors and sponsors
- environmental management, such as use of natural resources, operational impacts the environment, and managing climate change impact and risks.
- social responsibility, such as diversity and inclusion, labour practices, community engagement, supplier
- corporate governance including board/leadership, transparency, anti-corruption, integrity, principles and values.