From ESG Compliance to Strategy
What is ESG Compliance?
Environmental, Social, and Governance (ESG) compliance is how companies align their operations with ethical and sustainability ideals. It includes actions a company might take to reduce its carbon footprint, ensure decent working conditions in its supply chain, and maintain a transparent governance structure.
But it is not just about companies taking action on ESG topics; it is important that companies report on these actions. The emergence in recent years of voluntary frameworks and standards, such as the International Financial Reporting Standards (IFRS) and the Global Reporting Initiative (GRI), aims in part to make it easy for organizations to communicate on ESG performance, as well as provide guidance.
Fast forward to 2024, and the ESG landscape has become ever more complex with the introduction of a new framework: the Corporate Sustainability Reporting Directive (CSRD). The CSRD is a new European regulation that requires a much broader range of European companies to report on ESG. As a result, lots of companies are being introduced to ESG reporting for the first time and probably wondering, “What’s in it for me?”
