The Need for Corporates to establish Environment, Social and Governance (ESG) Processes has become quite important with many aspects of management, reporting and disclosures and will remain so for the foreseeable future for the following reasons
Attract and Keep Investors
Investors are using ESG as a screening method for choosing where to invest. If a company doesn’t have any ESG efforts or activity, it is at risk of being passed over for organizations that are publicly dedicated to ESG and that incorporate sustainable practices into the core of their business operations.
Rating agencies are benchmarking organizations against ESG parameters and ESG Ratings have become the guideline for investments
Regulatory agencies in multiple countries are likely to monitor disclosures to investors for investments based on ESG and will enhance their scrutiny to ensure markets and investors are not mislead by false statements
There are a number of frameworks and standards for ESG management and reporting, that the corporate may need to adhere to. Some of them are listed here. The regulations and disclosures for ESG are also continuously evolving even as the corporates are under pressure to prove their ESG postures.
GRI’s (www.globalreporting.org) standard for Sustainability Reporting
Task Force on Climate-related Financial Disclosures (TCFD)
CDP Carbon Disclosure Project (cdp.net)
UNPRI – UN’s Principles for Responsible Investment (www.unpri.org)
UNSDGs UN’s Sustainable Development Goals Reporting (www.un.org/sustainable development/sustainable-development-goals)
CDSB Climate Disclosures Standard Board (https://www.cdsb.net/ )
IIRC International Integrated Reporting Council (https://integratedreporting.org)
GRACE Can Help Establish and manage the ESG Process
GRACE can help Corporates
Identify the frameworks that are best suitable for their business
Establish the policies, procedures for ESG Management, Monitoring and Disclosures
Map Current Processes against frameworks for Disclosures
Obtain attestation from staff on adherence to these processes
Conduct current state of ESG assessments to benchmark themselves
Establish periodic data reporting and review processes
Manage the disclosures creation and review
Establish Key Process Indicators to monitor and
Have a real time ESG dashboard to continuously view and monitor changes
GRACE ESG for Corporates
Establish the ESG processes, data and metrics gathering, supply chain vendor ESG risks and monitor against goals with a simple to use GRACE system
GRACE helps manage the various ESG Frameworks like TCFD for Climate Change Disclosures, UN Sustainable Development Goals, UN Principles of Responsible Investing (UN PRI), UN Principles for Responsible Banking UN PRB, Global Reporting Institute’s GRI Sustainability Standards etc on the system.
It allows mapping of the various processes against these standards to enable data to be mapped correctly for disclosures as well as use it.
Conduct ESG Risk Assessments for Current State and Ongoing Progress
GRACE can help you set up various standardized questionnaires that can be sent to understand the current state of ESG processes and establish the new processes needed.
Calendars for assessments can be set up and alerts for follow up can be received.
Risk Assessment Questionnaires can be sent Online to collect information.
Findings can be analysed and risks recorded based on risk level to the organization.
Risks from the findings will be drawn into the ESG Risk dashboard along with their mitigation plan to monitor status of mitigation.
Establish ESG Policies and Procedures
The Organization’s ESG team can establish and manage ESG Management policies and procedures including review, release and versioning.
Through online attestation, the policies and procedures group can ensure all related staff are aware of the required expectations of the organization from its vendors.
ESG Supply Chain Risk Management
GRACE can help you set up your vendors and gather information on their ESG postures on a calendar basis through risk questionnaires to identify areas of change needed within each vendor.
Vendor Risk dashboard can help see the various vendor data online as well as the risk status within these organizations.
Establish ESG Goals and Manage them
GRACE can help set up and manage ESG goals for Environmental Metrics, Social Metric as well as Governance Metrics for the organization and manage them on a periodic basis across lines of business, departments and business functions.
ESG Process Management
The process management functions allows setting up for various ESG processes assign responsibilities for data reporting and allow the department users to report them on a periodic basis.
ESG Risk Dashboard
ESG Dashboard provides visibility to the ESG Officers to the various status of their ESG processes, analytics on the data that is gathered, trends over periods to see improvements in all aspects of ESG over time.
Charts and Analytics, with deep drill downs will allow for ESG Officers to their data in real-time and be made available for audits and examinations at all times.
ESG Key Risk Indicators (KRI) Monitoring
KRIs for various risks within ESG management can be set up for periodic monitoring. Staff can report the progress of KRIs and the KRI online dashboard can be available to senior management on a periodic basis.
GRACE can provide mapping the various policies, procedures, goals and data mapping to ESG Frameworks for easy data gathering and mapping.
Final disclosure documents can be created with very little effort as GRACE is the single source of truth for information and can cut disclosure creating time drastically.
It also provides traceability to all data in the disclosures.
GRACE offers Disclosure documents review process for people in the chain to review the completed disclosure documents and release.
The GRACE training function allows various training materials to be set up on the system and provide them to various staff members to ensure they are up-to-date on their understanding and obligations for ESG within the organization.
The system will help manage the Training calendar, send mails to staff for their training schedule and allow them to invoke the training online to go thru the training process.
It will record the data of successful training and scores when the user completes the training.
It will provide the online training dashboard on status and send alerts to users who have not completed their training.
The Great Value You Get from Using GRACE ESG for Corporates
Establish and manage the ESG process within the Corporate in an easy to implement way
Comprehensive management of ESG processes
GRACE can help you ensure an organized, ongoing and comprehensive process for ESG management within the corporate in an easy to use way
ESG Information becomes Online and Real time
With an integrated web based access anytime anywhere, there is no need for risk reports to be generated on ESG to present to senior management. All data is available online
Data gathering across functions made easy
Data gathering from various departments for their ESG data through online forms can bring all the data together and be analyzed through simple to use user functions across the organization
Improve Investor confidence by providing true, traceable information
The GRACE system becomes the living proof of auditable ESG management for investor reporting, rating agencies and regulatory examiners
By making process, data reporting responsibilities visible and with the ability to drill down to the status of mitigation, accountability for ESG management can be established and monitored
Organization Ownership of Data
Organizations suffer when key risk and compliance staff leaves. The information is scattered if maintained solely by individuals and are lying on disks in various forms. GRACE becomes the single central repository of documents, data and processes enabling continuity even when key people leave the organization
Early awareness of ESG trends against goals
With ongoing data gathering and mapping them to goals, trends can be very quickly identified with visual analytics , dashboards and drill downs to help the organization meet their ESG Goals
Single Source of Truth to ensure Traceability of Disclosures
Will all documents, data, reviews, audit trails, analytics and easy to use queries and reports, GRACE becomes the central repository of the Single Source of Truth on all ESG data for the organization and provide the single copy of data for disclosure to ensure traceability of the reporting
Enormous Cost Savings in disclosures management
By providing a single source of truth data for all disclosure s and mapping them to the reporting frameworks, organizations can benefit a lot from the costly manual processes of Disclosures management.
Complete Source of information : https://www.klgates.com/SEC-Proposes-Cybersecurity-Risk-Management-Rules-for-Investment-Advisers-and-Funds-3-9-2022. All Language quoted and attributed to the article On 9 February 2022, the U.S....
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