Applications

Environmental Social and Corporate Governance

Environmental Social and Corporate Governance

What is Environmental Social and corporate Governance?

Environmental Social and corporate Governance (ESG) refers to the three central factors in measuring the sustainability and ethical practices of an organization. It is a concept that is being applied to promote sustainability across many industries and relies on three key pillars:

1. The environmental pillar

Here we need to understand how a company’s behaviour affect or impact the environment. Climate change, pollution and waste are prominent considerations, however there are a number of other issues that could be a risk to a company’s long-term financial health and survival. These include:

  • Its use of or dependence on fossil fuels
  • Its use or management of water and other resources
  • Pollution levels
  • Climate change
  • Hazardous materials and their disposal

2. The social pillar

In this pillar we consider the effect of a company’s behaviour regarding social issues. These could include:

  • Employment equality and gender diversity
  • Product safety concerns and liability
  • Employee health and safety
  • Training and development
  • Animal testing
  • Stance on various physical and mental health-related issues, such as topics such as drug abuse, gambling and reproductive choice
  • Supply chain transparency
  • Human rights
  • Privacy issues

3. Governance Pillar

The governance pillar refers to how a company operates internally, its corporate behaviour. Other governance issues that might be considered when evaluating a company include:

  • Compensation of employees and board executives
  • Board and company diversity
  • Tax strategy and accounting standards
  • Bribery and corruption
  • Fraud
  • Ethics and values
  • Transparency and anti-corruption
  • Shareholder rights

ESG Management with Z Horse

  • Risk Identification - understand what to monitor, determine key parameters
  • Impact Assessment – evaluate criticality and potential losses
  • Risk Mitigation – develop preventive and reactive measures
  • Continuously monitor risks and disruptions
  • Perform supplier due diligence
  • Generate visual reports with key supplier information

Go beyond with Z Horse

  • You can get online reports on the most critical risks for the organization and the status of the controls to plan the key audit activities
  • You can manage indicators to monitor status of the three pillars of ESG
  • You can assess the level of compliance with the regulations, standards, or policies.
  • Create and follow up on actions plans.
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