Successful organizations develop them to shape corporate purpose and meet stakeholder expectations. Here’s how to listen, learn and own your ESG message.ESG refers to the process for setting, managing and reporting on an organization’s governance mechanisms, environmental and social impacts, and related policies.
As you build and evolve your ESG program, listen to the voice of society, ensure clarity of governance, and own your ESG narrative.” is now common parlance in today’s world because thousands of organizations have made ESG commitments. Investors, consumers, governments and citizens expect action. It’s not enough to have an ESG program. Organizations need one that understands stakeholder expectations and impacts corporate strategies and decision making.
, VP, Research at Gartner Research. “The law tells us what is necessary in terms of corporate behavior, but it doesn’t ensure a company’s social license to operate or the sustainability of revenue streams.”to ensure the company accounts for evolving societal expectations in corporate planning and governance, legal risk management and corporate disclosures.
Gartner recommends that companies form an ESG executive committee composed of senior leaders as required by the type of industry a business operates in. While this is an important show of commitment, it also consolidates ESG reporting into a central authority. This provides a clear overall picture to the board of directors, ensuring strategic objectives become concrete action in the wider organization.Tip No.