Are you satisfied with your understanding of your business’ Environmental, Social, and Governance (ESG) risks and opportunities? If not, you are not alone.
Although many companies may be facing minimal formal government regulations or none at all, many businesses are beginning to step up their ESG activities. As a result, organisations may miss out on opportunities to position themselves as a market leader to gain or protect market share, even when not subject to specific ESG reporting requirements.
For example, companies may be asked about their ESG policies by business partners, investors, or other stakeholders. A large international company may select its vendors based on the maturity of their ESG efforts, and those vendors may in turn demand the same level of ESG effort and reporting from their own suppliers, on down the line to the smallest companies in the supply chain. As a result, in the near future, small private companies should at least be prepared to implement ESG policies as robust as those followed by much larger organisations.