ESG Environmental Social Governance

Environmental

The “Environmental” aspect of ESG refers to how a company interacts with the natural environment and the impact of its operations on ecological systems.

It encompasses factors such as:

Climate Change

This involves assessing a company’s efforts to mitigate climate change, including its carbon emissions, energy efficiency measures, renewable energy usage, and strategies for transitioning to a low-carbon economy.

Resourcing

Companies are evaluated on their responsible use of natural resources such as water, energy, and raw materials. This includes reducing waste, increasing recycling, and minimising resource consumption.

Pollution and Waste

Companies are assessed based on their management of pollution and waste, including air and water pollution, hazardous waste disposal, and efforts to prevent environmental contamination.

Biodiversity Conservation

Focuses on a company’s impact on biodiversity and ecosystems. It includes measures to protect natural habitats, conserve biodiversity, and avoid activities that harm endangered species or ecosystems.

Supply Chains

Companies are increasingly expected to consider the environmental impact of their supply chains, including sourcing practices, transportation methods, and the environmental footprint of their suppliers.

Labour & HR

This involves evaluating how a company treats its employees and ensures their rights are respected. It includes fair wages, safe working conditions, equal opportunities, and freedom from discrimination and harassment.

Diversity & Inclusion

Companies are assessed on their efforts to promote diversity and inclusion within their workforce, including representation of different demographics (e.g., gender, race, ethnicity, age, sexual orientation) in leadership positions and throughout the organisation.

Health and Safety

This aspect focuses on measures taken by a company to ensure the health and safety of its employees and stakeholders. It includes policies and practices related to occupational health and safety, emergency preparedness, and employee wellness programs.

Community Engagement

Companies are evaluated based on their relationships with local communities, including efforts to contribute positively to community development, support local economies, and engage in philanthropic activities.

Customer Relations

This involves assessing how a company interacts with its customers, including product quality, safety standards, customer service, and responsiveness to customer feedback and concerns.

Supply Chain

Companies are increasingly expected to address human rights issues throughout their supply chains, including preventing forced labour, child labour, and other human rights abuses in their operations and supply chains.

Corporate Governance

This involves the structure and functioning of the company’s board of directors, including board composition, independence of directors, and effectiveness in oversight and decision-making. Strong corporate governance practices help ensure accountability, transparency, and shareholder interest alignment.

Ethical Conduct and Integrity

Companies are assessed on their commitment to ethical conduct and integrity in all operations. This includes adherence to legal and regulatory requirements, avoiding conflicts of interest, and promoting a culture of honesty and integrity throughout the organisation.

Executive Compensation

Governance evaluates the fairness and transparency of executive compensation practices, including alignment with company performance, long-term value creation, and consideration of social and environmental factors. Excessive executive pay or incentives that encourage short-termism may raise governance concerns.

Risk Management

Governance includes processes and systems for identifying, assessing, and managing risks faced by the company, including environmental, social, and governance risks. Effective risk management helps safeguard the company’s long-term sustainability and resilience.

Shareholder Rights

Governance assesses the rights and treatment of shareholders, including mechanisms for shareholder engagement, voting rights, and disclosure of relevant information. Companies are expected to respect shareholder rights and ensure fair treatment of all shareholders.

Transparency and Disclosure

Governance evaluates the transparency and quality of corporate reporting and disclosure practices. Companies must provide accurate, timely, and relevant information to stakeholders, including investors, regulators, employees, and the public.

Stakeholder Engagement:

Governance considers how companies engage with and respond to the interests and concerns of various stakeholders, including shareholders, employees, customers, suppliers, communities, and regulators. Meaningful stakeholder engagement helps build trust and foster long-term relationships.

Assessment and Gap Analysis

CGBC offer a comprehensive assessment and gap analysis service to review the organisation's current practices and performance related to ESG factors.

Strategic Planning

Based on the assessment findings, our experienced ISO consultants can assist in developing a strategic plan and roadmap for integrating ESG considerations into the organisation's overall business strategy and objectives.

ISO Certification Preparation:

CGBC's team of ISO consultants can provide guidance and support throughout the certification process.

System Implementation & Integration:

CG Business Consultants can assist in implementing and integrating management systems based on relevant ISO standards for environmental, social, and governance.

Continuous Improvement:

CGBC's team of experienced ISO consultants can help establish systems and processes for ongoing performance monitoring, data collection, analysis, and reporting to track progress towards ESG goals and identify opportunities for further improvement.

Stakeholder Engagement

Our ISO consultants can support the organisation in engaging with stakeholders, including employees, customers, suppliers, investors, regulators, and communities, to solicit feedback, address concerns, and build partnerships for advancing ESG objectives.

Benchmarking and Best Practices

One of the biggest benefits of working with CGBC is that we can provide insights into industry benchmarks, emerging trends, and best practices in ESG management and ISO standards implementation.