If you are going to develop specific E, S and G policies for your organization and want to start plotting your Sustainability Map, below are some factors to incorporate and sample actions to consider. Depending on the expertise and resources you have inhouse, you can employ the services of a sustainability consultant* to help you in the process. (There may be financial grants to be availed of towards the cost of external consultants and/or some of the sustainability related initiatives you undertake*).
Developing ESG Policies & Your Sustainability Roadmap
ESG Component
Recommended Features of Policy
Sample Metrics (to Assess Baseline & Set Targets)
Sample Initiatives & Activities
ENVIRONMENT
Reducing the Company’s Negative Impact on the Environment to Protect the Planet
➢ Overall Environmental Policy
➢ Include Specific Climate Action Plan & Target
➢ Energy & Water Consumption
➢ Waste Recycling
➢ Transport Emissions
➢ Paper / Plastics Usage
➢ Environmental Alliance Activity
➢ % Renewable Energy Usage
➢ Company Training on Climate Change & ESG
➢ Set up Green Team
➢ Research & Apply Options to increase % of Renewable Energy Usage.
➢ 5R’s Office Policy~
➢ Team Activities, e.g. community clean up, tree planting, UN Observance Days
SOCIAL
Treating Staff, Customers, Suppliers and the Community Better
➢ Diversity, Inclusion & Equality
➢ Staff Health, Safety & Wellbeing
➢ Community / Charity Support
➢ Promotion of Social Justice & Labour Equality
➢ Staff, Management & Board Diversity (Age, Gender, Ethnicity, Skills, Background)
➢ Job Creation
➢ Career Supports
➢ Suppliers – Local Sourcing
➢ Social Alliance Activity
➢ Adjust Diversity Targets
➢ Education & Career Progression Programmes (incl ESG)
➢ Flexible Working (office/remote)
➢ Charity Days
➢ Staff Surveys – D, I & E
➢ Sustainable Procurement Policy
➢ “Ethical” Pension Fund Options
Governance
Acting in the best interests of the business – holding the Company to account and Doing the Right Thing.
➢ Usual Governance Policies (Financial, Investment, Conflict of Interest etc) PLUS ESG Policy
➢ Risk Register – to incl ESG
➢ Board Composition (Exec / Non-Exec)
➢ Board Diversity
➢ Committee Structure
➢ ESG Board Pack Requirements
➢ Agree and Support Sustainability RoadMap
➢ Refresh / Rebalance Board for Diversity & Gaps
➢ Add Director(s)
➢ Add ESG as Standing Board Agenda Item
➢ Continual ESG Upskilling for Board
➢ Sustainability Committee
➢ Communication of Corporate Vision & Goals (and alignment with ESG Policies)
➢ Sustainability Reporting Process – Internal / External
~ 5Rs of Zero Waste: Refuse, Reduce, Reuse, Recycle, Rot.
Note: The above are suggestions to help you in your process. However, the most material and relevant factors to include may vary depending on your particular organisation, industry sector and business objectives.
*Sample Consultancy Resources, Training & Financial Supports:
• https://www.sustainabilityworks.ie/work
• https://changebydegrees.com/impact
• https://clearstreamsolutions.ie/our-work/
• Enterprise Ireland: http://www.globalambition.ie/climate-enterprise-action-fund
• Local Enterprise Grants: http://www.localenterprise.ie/green
• Sustainable Energy Authority of Ireland https://www.seai.ie/grants/
• Funding for Training https://www.skillnetireland.ie/about/funding-for-upskilling/
About the Author:
Aedín O’Leary is an Independent Director, Investment & ESG Consultant with over 25 years’ experience in the asset management industry, spanning multiple asset classes (traditional and alternative) and differing mandates. She consults on Asset Manager Selection (particular focus on ESG) and on Strategy for Investment Firms in relation to Launch and Distribution of Funds.
Aedín is a member of the Ethical Advisory Group for Appian Asset Management and of the ESG Working Group at the Investment Fund Directors Association. She is also Co-Founder of the Green Team Network, an initiative which devises collaborative solutions for the Irish Funds industry to tackle Sustainability (https://www.greenteamnetwork.ie/about). She also has substantial engagement with the Not-for-Profit sector with particular focus on Governance, Regulation and Risk.
aoleary@tripleline.ie