ESG strategies refer to an organization’s policies and procedures in the areas of the environment, social, and governance, which may impact their brand, revenue, company valuation, and market perception, and reduces risk. Consumers, employees, and investors are paying increasing attention to an organization’s ESG progress and how it aligns with customer, investors, and employee goals. With ESG developments continuing to build a better future, organizations still have some way to go when it comes to their environmental, social, and governance programs.
The ESG factors are comprised of environmental, social and governance. Take a deep dive into each factor below:
Environmental impact and sustainability reporting is increasingly important to consumers, with an organization’s environmental programs and carbon footprint playing a significant role in consumer decisions. 80% of companies worldwide report on sustainability ( KPMG CSR Report 2020 ), recognizing that it can be a competitive differentiator and a valuable resource for investors.
Organizations’ social policies and procedures shine a light on how they manage their relationships with employees, society, and their political environment. While this social element has often lagged behind the environmental portion of ESG reporting, it is increasingly shaping stakeholder trust and confidence, despite the challenges in clear reporting. Many organizations have set up Diversity, Equity, and Inclusion teams to help organizations fulfill their social responsibility in a meaningful way.
In short, governance looks at the rules, roles, and processes that run a company. Governance reporting has a longer history compared to the environmental and social elements, and plays a key role in investor confidence. This often takes the shape of building a trusted environment, where stakeholders feel empowered to promote a company’s ethos and policies, and report any potential wrongdoing, with 43% of all occupational fraud schemes being detected by tips in 2020 (ACFE 2020 Report).
How can OneTrust support your ESG strategies?
OneTrust’s ESG solution can help your organization develop a sustainable ESG program that will seamlessly integrate into your wider compliance program. OneTrust supports all frameworks and standards, including the Social Accountability Standards Board (SASB), The Task Force on Financial Related Disclosures (TCFD), and the Global Reporting Initiative (GRI), as well as the option for custom templates and frameworks, allowing for easy management and reporting.
OneTrust’s dashboards and exportable reports can help your organization easily report on their ESG metrics and data.