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Environmental, Social and Governance Policy Checklist

CO.CEP.08

ESG (Environmental, Social & Governance) is a broad umbrella term that includes factors from climate change, environmental conscientiousness and sustainability to social aims and governance responsibilities. This ESG Policy Checklist can help a business to plan and write an ESG policy statement. It contains a suggested structure for an ESG policy statement and it highlights some key ESG areas and objectives which a business might wish to cover in its policy statement.

ESG is more and more being seen as a top priority for businesses and, in view of this, they need to have an awareness of their own wider impact on society and the environment in which they operate. A failure by a business to tackle ESG issues relevant to it may lead to, amongst other things, regulatory enforcement as well as posing a litigation, physical, commercial, financial and reputational risk to it that might adversely affect its sustainability and resilience. There is also a growing trend for ESG requirements and compliance as a pre-requisite for contracting with other parties.

In view of these considerations, it is becoming increasingly necessary for a business to have an ESG policy and strategy in place to address ESG issues. An ESG policy statement serves not only to clarify for a business what its ESG objectives are and should be, but also to record and communicate to its stakeholders what its ESG commitments are going forward.

However, each business will need to tailor its ESG policy statement according to its particular needs and circumstances. It will need to decide on the content of its ESG policy statement by taking into account its size and sector focus, and the type of organization that it aspires to be. Therefore, this document is not, and should not be treated as, a one-size-fits-all template. It can only be a starting point for drafting an ESG policy statement.

A business will need to amend this document by deleting and/or adding content to it and redrafting it where appropriate to turn it into a policy statement that meets its needs.

Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document. This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

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