ESG PolicyThis ESG Policy represents a company's statement of values regarding environmental, social and governance issues. It is a tool to guide the company's operations at the level of employees but also contractors and commercial partners.
ESG brings together environmental, social and governance issues under one banner to ensure that a company's overall impact is positive. ESG is much like corporate social responsibility, but on a vastly larger and more measurable scale. It represents a set of priorities that are most important to investors and consumers at the present time, and having such a policy is beneficial for a company wishing to take action on these issues and to be seen to do so. ESG policies are often used as a framework for organisations to assess and manage their sustainability and responsible business practices, and to communicate their efforts to stakeholders. Organisations may choose to adopt ESG policies for a variety of reasons, including ethical considerations, risk management, reputation management, and alignment with stakeholder expectations.
Examples of ESG criteria:
Environmental: includes factors such as a company's carbon footprint, water and energy usage, waste management, and pollution levels.
Social: includes a company's labour practices, human rights record, diversity and inclusion policies, and impact on local communities.
Governance: includes factors such as a company's board diversity, executive compensation, transparency, and ethical business practices.
What are the benefits of an ESG Policy?
Demonstrates a company’s commitment to responsible and sustainable business practices, and to manage risks and create long-term value.
An ESG policy can help companies identify and mitigate risks related to environmental impact, social issues, and governance practices.
It can drive innovation by encouraging companies to develop new products and services that prioritise sustainability and social responsibility, leading to new market opportunities and increased competitiveness.
It can help companies align with their stakeholders’ values, including customers, employees, investors, and communities, leading to increased loyalty, engagement, and support.
It can contribute to long-term growth by promoting sustainable business practices which increase efficiency, reduce costs and generate new revenue streams.
Use this ESG Policy if:
You are a company looking to improve your sustainability practices and reduce your environmental footprint.
What does the ESG Policy cover?
The parties responsible for implementing this policy, and the role that they play.
Monitoring, reporting and enforcement mechanisms.
The details of initiatives that can be taken.