KPMG's "The ESG journey: Lessons from the boardroom and C-suite" shares instructive insights for companies from directors and executives of ESG-leading organizations on how to bring to fruition the firm's five-step framework "ESG, strategy, and the long view."
The user-friendly framework, which is excerpted from KPMG's 2017 publication, comprises:
- Level setting: Agree on the definition of ESG and its importance to the company.
- Assessment: Determine which ESG risks and opportunities are of strategic significance to the company.
- Integration: Encourage integration of strategically significant issues into the business strategy.
- Stakeholder communications: Shape the company’s key ESG messages to investors and other stakeholders in the context of strategy and long-term value creation.
- Board oversight: Ensure that the board has the right composition, structure, and processes to oversee ESG in the context of strategy and long-term value creation.
Also helpful given the varying interpretations and perceptions, "ESG" is defined for purposes of the framework and related insights as those issues "that are prominent on investors’ and other stakeholders’ agendas today and commonly cited in corporate responsibility and sustainability reporting," with a list of illustrative topics across Environmental, Social and Governance categories.
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Access additional relevant resources on our ESG page. This post first appeared in the weekly Society Alert!
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