Implementing an Environmental, Social and Governance Strategy

ESG or environmental, social and governance is a broad umbrella term that includes factors from climate change and environmental conscientiousness and sustainability to social aims and responsibilities. In the commercial sense, it is how a business manages its operations to minimise its negative impact on the environment and wider society. It also includes a company’s social responsibility to its employees.

Given the current focus on climate change, resource depletion, waste and pollution, it is advisable for companies, including even small SME companies, to consider what their ESG strategy is and how this should be put in place in a way that is relevant to the company in question.

This month a new set of template board minutes have been created, to enable companies to start this process by explaining what their ESG strategy is and what practices and policies they are planning on putting in place as part of this. This will mean different things to different organisations depending on size and sector. However, a successfully thought out and considered ESG strategy is expected to have long term benefits for the company’s shareholders, employees and society.