An ESG Policy demonstrates a company’s Environmental Social & Governance ethos.
An ESG Policy is a policy/framework that demonstrates a company’s approach to issues around matters of environment (E), social (S) and governance (G) issues. The ESG Policy should therefore cover those 3 areas.
Who uses ESG information?
ESG policies are increasingly important to potential investors.
What is an Environmental Policy (ESG)?
Your company’s ESG policy may cover things as follows (that are relevant to the environment):-
- SUPPLY CHAIN – is your supply chain audited for sustainability?
- CARBON FOOTPRINT – of your own operation and those within your supply chain
- ENERGY USE – is it renewable energy?
- POLLUTANTS – does your operation produce chemical or pollutant waste?
What is a Social Policy (ESG)?
Your company’s social policy (ESG) might cover things such as:-
Carbon footprint is one of several important environmental issues
Social aspects are perhaps those most relevant to the area of employee wellbeing, human resources (HR), and employment law.
What is a Governance Policy (ESG)?
Your governance policy (ESG) might cover areas such as:-
- BOARD MEMBERS (eg diversity)
Employee Benefits from an ESG Policy
Employee engagement and buy in to a new ESG emphasis is really important – if you don’t bring the staff along with you, your ESG programme won’t be so successful in terms of increased employee retention and productivity. So, it’s a good idea to seek input from employees about how and what to introduce as part of an ESG framework. Ask what benefits they would like to see introduced, giving some ideas like those above.
Is there a standard ESG Policy?
It’s tricky to be definitive about what to include and how to introduce ESG policies, because the contents and process will be unique to the organisation, industry, and workforce involved.
Employment Law Solicitors
If you have any employment law queries around ESG, or want information about how you can introduce ESG factors to your existing policies and procedures, do reach out to our expert team of online employment law solicitors. Leave a comment below or email at email@example.com, or call us at 03300 020 365.