Corporate environmental, social, and governance (ESG) identifies and measures the impact of 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. Publishing corporate ESG reports is becoming more important as customers, employees, and investors want to know what your impact is in these areas. Many companies are just beginning to develop their ESG reporting, and it can feel a little daunting at times. 

Watch the webinar: How OneTrust ESG can Help Organizations Gather, Track, and Report on Corporate ESG Data 

What are the Components of ESG?

ESG reports are typically defined from metrics in the areas of environmental, social, and governance. 

The ‘environmental’ component addresses the impact and the footprint of an organization on the external environment. These criteria are looked at by investors and capital markets in their evaluations of companies, but also increasingly by employees and customers, who take them into account when assessing their internal policies and managing environmental factors. 

The ‘social’ component addresses the way in which organizations manage their relationships and foster their reputation when dealing with employees, vendors and suppliers, customers, and the broader communities where they operate. 

The ‘governance’ component addresses the internal system of practices, controls, and procedures organizations adopt to govern themselves, make effective decisions, comply with the law, and meet the needs of external stakeholders. 

What are the Key Drivers of ESG?

ESG criteria is a popular way for investors to evaluate companies in which they might want to invest,as ESG criteria can guide investors to those companies that are a lower risk due to their ESG practices. But new imperatives are driving ESG today. These four main imperatives include: 

 Watch the webinar: How OneTrust ESG can Help Organizations Gather, Track, and Report on Corporate ESG Data 

Which ESG Frameworks Should an Organization Leverage?

There are numerous ESG-related frameworks that have evolved over the years, each with their own spin and metrics around ESG. By navigating, assessing, and comparing ESG frameworks and standards, organizations can build their ESG programs that their employees, customers, as well as with investors and capital markets’ want to know about. 

While these frameworks are non-binding, they represent sets of best practices which can assist organizations comply with binding, legal requirements in jurisdictions around the world, such as the EU Non-Financial Reporting Directive and the EU Taxonomy Regulation. These frameworks include: 

Once you’ve established the frameworks you will use, you will need to kickstart your ESG program. Below are just a few actions you to consider when starting: Assess, map and publish the organization’s ESG-related requirements  

Companies can no longer ignore ESG reporting and the value stakeholders are putting on it, for more information on how to gather, track, and report on your corporate ESG data, watch our webinar, and request a demo to learn more about how OneTrust can help. 

Further reading on corporate ESG data:  

Next steps for you corporate ESG data:  

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