The Key to Embedding ESG in Your DNA

Simon Arlington, Matthew Dunlap, Angela Kerek, and Patrick Spaeth authored an article for Maddyness discussing the importance of environmental, social, and governance (ESG) factors as a “must” for any business.

“For many businesses, embedding ESG into their DNA can seem daunting due to the complexity and proliferation of ESG regulations and reporting frameworks,” the authors wrote. “While efforts are being made to adopt uniform ESG reporting standards to act as a single reference point for businesses, such efforts are slow going. The spectre of different ESG regulatory and reporting regimes – for example across the EU, UK, and US – poses significant risks for companies with global operations.”

They added: “Given that ESG covers a broad range of topics, businesses seeking to adopt ESG policies must first undertake an internal ‘materiality assessment’ to determine which ESG factors are important and most relevant for its internal and external stakeholders and operations. Once a company’s ESG strategy has been identified and adopted, its board of directors and senior management must take an active role in ensuring that ESG practices are adopted on a company-wide basis. ESG teams should be interdisciplinary, composed of members from finance, operations, human resources, investment relations, marketing and legal, to ensure comprehensive and entrenched ESG practices.”

Read the full article.