12 Steps to Best Practice ESG Reporting

We spotted this in F&C’s Corporate Governance Guidelines document published earlier in the year, and took the liberty to share. Particularly interesting for IR teams responsible for communicating ESG matters to investors.

Basic:

• Identify significant ESG risks and opportunities for the business
• Establish and explain board accountability for ESG issues
• Set out policies for significant ESG issues and explain how they are implemented and monitored
• Establish and disclose targets and Key Performance Indicators for significant ESG issues covering global operations
• Describe systems for training board members and staff on ESG issues
• Report on performance against policies

Best Practice:

• Explain how ESG policies link to key operational and financial drivers
• Describe procedures for consulting key stakeholders and provide feedback on the range of views
• Discuss challenges and set-backs as well as success stories
• Describe procedures for verifying data including external verification
• Take account of widely-accepted reporting standards such as the Global Reporting Initiative
• Describe how ESG objectives are embedded into the corporate culture, including how they are reflected in remuneration policies and other performance management tools

Source: F&C, Global Corporate Governance Guidelines, January 2014