ESG

ESG is not necessarily new, but a more structured and systematic evolution of prior Corporate Social Responsibility (CSR) reporting. It is not the concept of ESG that is challenging, but the speed at which the public and other key stakeholders have endorsed it, that creates the greatest challenge for companies.  ESG is not only impacting companies from a financial perspective, impacting credit ratings, increasing cost of capital and insurance rates, it is now set to become a regulatory issue.

The demand for companies to disclose their Environment, Social and Governance performance, and approaches for management of these related issues, continues to grow.  Companies are not only being asked how they are managing these changing risks today but also what they are doing to improve in these areas in the future. 

To effectively meet ESG requirements, companies will have to demonstrate sustained improvements in defined ESG pillars and stated requirements, supported by:

  • Established processes;

  • Consistent and progressive practices;

  • Measurement, reporting, and leadership oversight; and

  • Disclosure/Transparency (e.g. public reporting)

But there are many different Disclosure Standards and Frameworks that companies may be required to adhere to for their disclosures including CDP, SASB, GRI & TCFD.  There even more rating agencies that use this disclosure information to rate various companies. 

Understanding how the criteria in the Disclosure Standards interact and overlap and how raters use this information is critical to efficiently and effectively navigating the ESG landscape. 

Applied4Sight has completed detailed analysis and assessments of the various disclosure standards and has identified common topics and criteria.  We have helped our clients align their existing policies, strategies, processes, practices, and metrics to the various Disclosure Standards and developed integrated work plans and improvement actions.  These recommended actions cut across the various disclosure standards, significantly increasing efficiency and the rate of ESG improvements. 

Applied4Sight has also developed various risk processes, developed low carbon transition scenarios, and supported Scope 1, 2 & 3 GHG emission reporting.