Environmental Social Governance
Implementing principles and practices of Environmental Social Governance (ESG) into business models and company operations is now a fundamental aspect to the sustainability of many businesses. Investors are increasingly integrating ESG risk into their analysis and screening of corporate assets. Previously seen as an add-on to investment decisions, investors now actively include ESG considerations in their investments and involve ESG in their calculations on risk.
Solid governance, creates better performance
Now that environmental, social and corporate governance considerations are widely integrated into investment decisions, it is critical, large-scale corporations monitor their compliance with their selected ESG standards and criteria. A business or corporation integrating ESG principles into their business models are more attractive to investors. They provide investors with another form of assessment on how a company manages certain risks, and (hopefully) a reassurance that they are a secure investment.
Mainer Associates have previously been appointed to monitor and report on the implementation of ESG principles and collation of evidence to monitor compliance. We have experience in playing a key role in a sustainability working groups to ensure businesses are continuously aligned to their ESG principles and standards.
We can help organisations demonstrate long term value for shareholders and lessen the risks investors are exposed to.
Often investor involvement can clearly contribute to better long-term performance, Mainer Associates can therefore help ensure organisations remain a solid and low risk investment by auditing, monitoring and improving your ESG compliance and practice.
ESG: What does it mean?
What the E, the S and the G entail and demand are very subjective from company to company. It depends on size of corporate influence, scale and type of operations and a company’s core values.
At a high level, the three components address the following issues:
Environmental: Corporate impacts on climate change, pollution, and waste management;
Social: Labour rights, supply chain, child labour, health and safety; and
Governance: Board structure, diversity, anti-bribery, shareholder rights.
These components can be adapted and applied to fit your company’s needs, business models, ethos, and core values. The issues covered are not limited to those detailed here and can, and should be, specific to your business. Mainer Associates can assist organisations in developing the most appropriate set of ESG criteria.
In summary, Mainer Associates can assist by:
- Holding workshops with key individuals to establish your ESG needs and aspirations;
- Assisting in formulating ESG policy;
- Auditing current policies, company values and strategies; and
- Monitoring, collating and reviewing ESG compliance.