TBT - ESGSA - 7/125 - Building an ESG Framework @esgsacademy6537

Summary

This video script offers a step-by-step guide to building an ESG (Environmental, Social, and Governance) framework, emphasizing the integration of sustainable practices into business operations. It covers understanding ESG principles, assessing organizational readiness, engaging stakeholders, conducting materiality assessments, defining goals, developing policies, integrating ESG into business strategy, establishing governance, measuring performance, training, continuous improvement, and external engagement. The aim is to drive long-term value creation and positive impacts through a strong ESG framework.

Takeaways

• 📚 Understand ESG Principles: Familiarize with the core principles of Environmental, Social, and Governance (ESG) and their role in sustainable business practices.
• 🔍 Assess Organizational Readiness: Evaluate the current state of ESG maturity, including existing policies and practices related to ESG issues.
• 🤝 Engage Stakeholders: Identify and interact with key stakeholders to understand their ESG priorities, concerns, and expectations.
• 🔑 Materiality Assessment: Conduct an assessment to identify and prioritize significant ESG issues relevant to the organization's operations and stakeholders.
• 🎯 Define ESG Goals: Establish clear and measurable ESG objectives aligned with the organization's mission, values, and strategic priorities.
• 📝 Develop Policies and Procedures: Create comprehensive ESG policies and procedures that outline the organization's commitment to ESG principles and strategies.
• 🔄 Integrate into Business Strategy: Incorporate ESG considerations into the overall business strategy and decision-making processes to drive sustainable value creation.
• 🏛 Establish Governance Structure: Define a clear governance structure with roles and responsibilities for overseeing ESG strategy implementation and progress.
• 📊 Matrix and Measurement: Define key performance indicators (KPIs) and metrics to track progress towards ESG goals and demonstrate impact.
• 👨‍🏫 Training and Awareness: Provide training and awareness programs to educate employees and stakeholders about ESG principles, policies, and practices.
• 🔄 Continuous Improvement: Foster a culture of continuous learning and improvement by regularly reviewing and refining the ESG framework.
• 🌐 External Engagement and Reporting: Engage with external stakeholders to communicate the organization's ESG commitments, performance, and progress.

Q & A

What is an ESG framework?

An ESG framework is a structured approach to integrate Environmental, Social, and Governance considerations into business operations and decision-making processes, aiming to drive sustainable business practices and long-term value creation.

Why is it important to understand ESG principles?

Understanding ESG principles is crucial as they are the core foundation for driving sustainable business practices, ensuring long-term value creation, and engaging with stakeholders effectively.

What does the assessment of organizational readiness involve?

The assessment of organizational readiness involves evaluating the current level of ESG maturity, including existing policies, practices, and initiatives related to environmental, social, and governance issues.

Who are the key stakeholders in the context of ESG?

Key stakeholders in the context of ESG include investors, employees, customers, suppliers, communities, and other stakeholders whose ESG priorities, concerns, and expectations need to be understood.

What is a materiality assessment in the context of ESG?

A materiality assessment is a process to identify and prioritize the most significant ESG issues relevant to the organization's boundaries, operations, activities, industry, and stakeholders.

How are ESG goals and objectives defined?

ESG goals and objectives are defined based on the outcomes of the materiality assessment and stakeholder engagement, ensuring they are clear, measurable, and aligned with the organization's mission, values, and strategic priorities.

What does developing comprehensive ESG policies and procedures entail?

Developing comprehensive ESG policies and procedures involves outlining the organization's commitment to ESG principles, objectives, strategies, and ensuring alignment with relevant laws, regulations, industry standards, and best operating practices.

How does ESG integration with business strategy work?

ESG integration with business strategy involves incorporating ESG considerations, criteria, and factors into the organization's overall business strategy and decision-making process, as well as the risk management framework, to drive sustainable value creation and mitigate risks.

What is the purpose of establishing a governance structure for ESG?

The purpose of establishing a governance structure for ESG is to define clear roles and responsibilities for overseeing the ESG strategy's implementation, monitoring progress, and ensuring accountability, as well as defining reporting lines and communication channels for effective coordination and cooperation.

Why is it important to define key performance indicators (KPIs) for ESG?

Defining KPIs for ESG is important to track progress towards ESG goals, measure performance, demonstrate impact, and establish mechanisms for collecting, analyzing, and reporting sustainability data transparently and regularly.

What role does training and awareness play in an ESG framework?

Training and awareness play a crucial role in educating employees and stakeholders about ESG principles, policies, and practices, fostering a culture of sustainability and responsibility throughout the organization.

How does continuous improvement in ESG practices help an organization?

Continuous improvement in ESG practices helps an organization by driving a culture of continuous learning and improvement through regular review and refining of the ESG framework.

What is the significance of external engagement and reporting in an ESG framework?

External engagement and reporting are significant as they involve communicating the organization's ESG commitments, performance, and progress to external stakeholders, including investors, regulators, rating agencies, and industry peers.

Outlines

00:00

🌿 Building an ESG Framework

This paragraph introduces the concept of establishing an Environmental, Social, and Governance (ESG) framework, which is a structured approach to incorporate ESG factors into business operations and decision-making. It emphasizes understanding ESG principles, assessing organizational readiness, engaging stakeholders, conducting materiality assessments, defining ESG goals, developing policies, integrating ESG into business strategy, establishing governance structures, measuring performance, providing training, and fostering continuous improvement. The aim is to create sustainable business practices and long-term value while engaging stakeholders effectively.

05:00

📈 Driving Long-Term Value with ESG

The second paragraph concludes the discussion by highlighting the importance of integrating ESG considerations into core business practices to drive long-term value creation and positive impacts. It serves as a call to action for organizations to start new discussions on ESG topics, indicating the significance of ongoing dialogue and commitment to ESG principles for sustainable and responsible business operations.

Keywords

💡ESG framework

An ESG framework refers to a structured approach that integrates Environmental, Social, and Governance considerations into business operations and decision-making processes. It is central to the video's theme, as it is the main subject being discussed. The script outlines steps to build such a framework, emphasizing its importance in driving sustainable business practices and long-term value creation.

💡Sustainable business practices

Sustainable business practices are methods and strategies that a company employs to operate in a way that is environmentally friendly, socially responsible, and economically viable. In the script, these practices are highlighted as a key outcome of understanding and implementing an ESG framework, which aims to create long-term value and engage stakeholders.

💡Stakeholder engagement

Stakeholder engagement involves actively involving all parties with an interest or stake in a company's activities, outcomes, or survival. The script mentions this as a critical step in building an ESG framework, where organizations identify and interact with stakeholders like investors, employees, and suppliers to understand their ESG priorities and expectations.

💡Materiality assessment

A materiality assessment is a process used to identify and prioritize issues that are most relevant and significant to a company's business and stakeholders. In the context of the video, this assessment helps define the ESG goals and objectives, ensuring that the company focuses on issues that matter most to its operations and industry.

💡ESG goals and objectives

ESG goals and objectives are the specific, measurable targets a company sets to achieve in the areas of environmental, social, and governance performance. The script explains that these goals should be aligned with the organization's mission, values, and strategic priorities, and are defined based on the outcomes of materiality assessments and stakeholder engagements.

💡Policies and procedures

Policies and procedures are the formal rules and guidelines that an organization establishes to govern its operations and behaviors. In the script, developing comprehensive ESG policies and procedures is a step in the ESG framework, which outlines the organization's commitment to ESG principles and strategies, and ensures alignment with laws, regulations, and best practices.

💡Business strategy integration

Business strategy integration involves incorporating ESG considerations into an organization's overall strategic planning and decision-making. The script emphasizes this as a step in the ESG framework development, where ESG criteria and factors are integrated to drive sustainable value creation and mitigate risks.

💡Governance structure

A governance structure defines the roles and responsibilities within an organization for overseeing and managing its operations. In the context of the video, establishing a clear governance structure for ESG strategy implementation, monitoring progress, and ensuring accountability is a key step in the ESG framework.

💡Key performance indicators (KPIs)

Key performance indicators are metrics used to evaluate the success of an organization in achieving its objectives. The script discusses defining KPIs in the ESG framework to track progress towards ESG goals, measure performance, and demonstrate impact through transparent and regular reporting of sustainability data.

💡Training and awareness

Training and awareness programs are initiatives aimed at educating employees and stakeholders about specific principles, policies, and practices. In the script, providing such a program for ESG principles, policies, and practices is highlighted as a way to foster a culture of sustainability and responsibility within the organization.

💡Continuous improvement

Continuous improvement is the ongoing process of enhancing products, services, or processes. The script mentions driving a culture of continuous learning and improvement by regularly reviewing and refining the ESG framework to ensure it remains effective and relevant.

💡External engagement and reporting

External engagement and reporting involve communicating with external stakeholders such as investors, regulators, and industry peers about an organization's ESG commitments, performance, and progress. The script positions this as a final step in the ESG framework, emphasizing the importance of transparency and accountability in ESG practices.

Highlights

Introduction to building an ESG (Environmental, Social, Governance) framework for integrating ESG considerations into business operations and decision making.

Understanding ESG principles and their importance for driving sustainable business practices and long-term value creation.

Assessing organizational readiness and maturity for ESG integration through evaluating existing policies and practices.

Engaging with key stakeholders to understand their ESG priorities, concerns, and expectations.

Conducting a materiality assessment to identify and prioritize significant ESG issues relevant to the organization.

Defining clear and measurable ESG goals and objectives aligned with organizational mission, values, and strategic priorities.

Developing comprehensive ESG policies and procedures that outline the organization's commitment to ESG principles and objectives.

Integrating ESG considerations into the overall business strategy and decision-making process to drive sustainable value creation and risk mitigation.

Establishing a clear governance structure with defined roles and responsibilities for overseeing ESG strategy implementation and monitoring progress.

Defining key performance indicators (KPIs) and metrics to track progress towards ESG goals and demonstrate impact.

Establishing mechanisms for collecting, analyzing, and reporting ESG data transparently and regularly.

Providing training and awareness programs to educate employees and stakeholders about ESG principles, policies, and practices.

Fostering a culture of sustainability and responsibility throughout the organization.

Driving a culture of continuous learning and improvement by regularly reviewing and refining the ESG framework.

Engaging with external stakeholders, including investors, regulators, and industry peers, to communicate organizational ESG commitments, performance, and progress.

Building a strong ESG framework that integrates ESG considerations into core business practices, driving long-term value creation and positive impacts.

Transcripts

[Music]

Hello friends how are you hope you're

doing well so let us start the

discussion related to our new topic

building an ESG framework environmental

social governance framework

so this involves creating a structured

approach to integrate ESG considerations

into business

operations and decision making processes

here are step by

step guide to build an ES framework so

let us understand understand step by

step approach so first one is about

understand ESG principles in this we

familiarize ourselves with the core

principles of ESG and their importance

in driving sustainable business

practices sustainable business practices

so core principles of ESG and their

importance in driving sustainable

business practices the long-term value

creation and stakeholder engagement in

the next assessment of the

organizational Readiness the maturity

model we are talking about so evaluating

the organizational current level of ESG

maturity including existing policies

practices and initiatives related to

environmental social governance issues

the next is stakeholder engagement here

as I said earlier we identify and engage

with key stakeholders including

investors employees customer supplier

communities NOS to understand their ESG

priorities concerns and expectations

third one stakeholder engagement and

next is materiality assessment we

conduct a materiality assessment as I

said to identify and prioritize the most

significant ESG issues relevant to the

organizational boundaries the Scopes the

operations the activities the industry

and the stakeholders next is we Define

the ESG goals and

objectives based on the material

assessment what we have conducted the

stakeholder engagement we have

conducted

uh we Define the clear and measurable

ESG goals objectives aligned with the

organizational Mission values and

strategic priorities the next one is

developing the policies and procedures

in this step of the framework

development uh we develop the

comprehensive ESG policies and

procedures outlining the organizational

commitment to ESG principles

the ESG objectives the ESG strategies

and ensuring the alignment with relevant

laws regulations industrial standards

best operating practices the next is

integrating the business strategy

integrating with the business strategy

or corporate strategy so we integrate

ESG

considerations ESG criteria ESG factors

into the organizational overall business

strategy in the decision- making process

and the risk management free framework

to drive sustainable value

creation to mitigate the risk the

governance structure the next one in the

governance structure we establish clear

governance structure the roles and

responsibilities for overseeing the ESG

strategy

implementation monitoring the progress

ensuring accountabilities so we Define

reporting lines and communication

channels to facilitate effective

coordination collaboration and

cooperation next is Matrix and

measurement in The Matrix and

measurement we Define the key

performance indicators so our kpi key

performance indicators and matrics to

track the progress towards ESG

goals performance measurement and

demonstrating the impact establishing

mechanism for collecting analyzing and

Reporting SD data transparently and

regularly the next we talk about

training and awareness Pro providing a

training and awareness program to

educate employees and stakeholders about

ESG principles policies and

practices

uh this will lead to you know educating

the employees stakeholders about our

framework ESG framework ESG principles

policies and practices and we will

Foster a culture of sustainability and

responsibility throughout the

organization in the next continuous

improve Improvement in this step we

drive a culture of continuous learning

and Improvement by having regular review

and refining our ESG framework the next

is external engagement and Reporting in

this step engaging with the external

stakeholders including investor

regulator rating agencies industry peers

to communicate our organizational ESG

commitments the

performance and the progress so by

following these steps organizations can

build a strong ESG framework that

integrates ESG consideration into the

core business practices driving

long-term value creation and positive

impacts thank you very much friends so

let us start the new discussion new

topic