The increased importance of Environmental, Social and Governance matters are by no means a novelty at this stage, fuelled partly by society’s call for change as well as by the EU’s advancements on a legislative perspective.
In fact, during the past decade, the EU as well as other bodies and associations have introduced numerous directives and guidelines in an attempt to improve companies’ accountability and transparency in reporting their own impact on the environment and its people.
While the regulatory aspect of ESG is continuously evolving, we have put together a summary which highlights the key aspects of the current and proposed legislation which is set to guide the way to the betterment of the EU economy from an ESG standpoint.
Keeping abreast of the ESG regulations may seem daunting. It is therefore crucial that organisations begin to sift through the noise and focus on devising an ESG strategy for the future. At this stage, the value of being proactive cannot be underestimated and organisations cannot afford to be left behind.
At this stage, organisations are advised to identify methods and procedures that enable them to measure and track their current impact on the environment and society. New policies, processes and systems would allow for the gathering of data, utilised primarily to support clear goals and metrics that are in line with an overall ESG strategy. This allows for the efficient measurement and control of organisational operations in the interest of constant improvement over prior records.
It is easy for an organisation to focus all efforts on the reporting side of ESG, but it is crucial that the core values of ESG are not ignored and that such values are embedded within the fibres of the organisation and its people.
