In a time where ESG is becoming a greater and greater presence in boardrooms globally, knowing how to develop an ESG framework is vital.
In a recent post by Diligent, the company sought to lay the foundational elements to help companies develop an ESG program.
When it comes to developing an ESG program, Diligent underlined that it was key to get an understanding of existing corporate initiatives and evaluate if they align with ESG.
Companies also need to take into account what competitors are doing around sustainability. “This will not only help define your own steps but will provide you with the opportunity to move ahead of the competition the steps they’re taking aren’t clearly delineated,” said Diligent.
Securing buy-in from your executive leadership is also crucial. In this, Diligent claims your focus on ESG will permeate all areas of the business, with actions needing to be cross-functional.
Diligent said, “As a company, our goal is to be the global leader in modern governance. By following the steps above to map out our reporting framework, we were able to streamline and create efficiencies around current initiatives and growth areas, while also giving us the opportunity to truly understand our priorities and the areas where we wanted to focus and make the most change.
“Identifying, consolidating and categorizing these programmatic focus areas allows us to track, measure and report with integrity and align our ESG strategy with our company’s mission.”
The company claims it is concentrating its effort into three pillars that are most important to it – people, planet and purpose.
Diligent explained, “Our People pillar (encompassing employee engagement, social investments, responsible sourcing, and research and education) is key given that our employees and clients are our priority stakeholders — investing in them materially and ensuring we have the structure in place to support them is important in everything we do.”
For the planet pillar, the firm explains it sought to establish its Net Zero commitment not only because of climate change but also because companies have a ‘moral imperative to act’.
Purpose (encompassing accountability, transparency, modern governance, and leadership) is probably the closest of all the pillars to Diligent’s own mission as an organisation, it claims. “As the premier modern governance company, accountability and transparency is paramount for our success”.
Diligent concluded, “Ultimately the framework or pillars your organization decides to set as the foundation for its ESG program will be based on what is most important to you. These key focal points will allow you not only to define your ESG strategy, but to set actions on the pathway to achieving your goals — and those of your clients, employees and other stakeholders — in the future.”
Read the full post here.
Copyright © 2023 RegTech Analyst
Copyright © 2018 RegTech Analyst