Environmental, Social and Governance
Archer ESG Management
Archer ESG Management enables you to measure, quantify, assess, and report ESG readiness.
Environmental, Social, and Governance (ESG) is a concept rapidly gaining prominence in the corporate risk landscape, and manifests as the evaluation of risks pertaining to the environment and sustainability, brand values, legal considerations, and ethical conduct towards both employees and the community. ESG is often associated with another popular corporate acronym, CSR, or corporate social responsibility.
Risk management teams must consider social factors and a renewed global emphasis on corporate social responsibility in almost all aspects of business, both financial and non-financial, as companies now face increased scrutiny pertaining to their overall impact on society and the environment.
In the years ahead, it will be vital for large organizations to be able to plan, execute, monitor, and report on key environmental, social, and corporate governance initiatives. This will be a key factor in relations with both potential investors and the public at large.
Addressing ESG Strategically
Addressing ESG from a tactical point of view, efforts typically focus on building an annual Environmental, Social, and Governance report. These reports often only offer fleeting value in the world of 24 news cycles, and organizations should try to gain efficiencies by avoiding large manual efforts to compile these reports.
ESG efforts become higher value when they go beyond simply meeting basic regulatory requirements and actually help alter business strategy to plan for disruptions and allow management to communicate actions that address potential uncertainty.
A recent study by the University of Oxford found that 88% of companies with robust environmental, social, and governance practices achieved better operational performance. That same study also found that 80% of companies with top-tier sustainability practices saw a positive impact on stock prices.
Environmental, Social, and Governance: An Integrated Risk Management Approach
Any good integrated risk management framework must take into account the world of ESG. This is not simply an area where the occasional good deed will remove a corporation from public scrutiny. Environmental impacts to a company from global weather events can be very real, and many prominent investors now take environmental, social, and governance scores very seriously when considering where to outlay investment dollars.
Risk teams must work closely with operational and executive teams to ensure that a roadmap is created with the goal of achieving true operational resiliency. Archer’s well-known capabilities in helping organizations manage risk provides an optimal combination with ESG efforts. Archer Integrated Risk Management enables organizations to address multiple dimensions of risk management including operational risk management, third party governance, regulatory and corporate compliance, business resiliency, IT and security risk management and audit processes on one configurable platform.
The Archer Environmental, Social, and Governance solution provides enterprise-wide assessment, mapping, monitoring, reporting, and quantification of the organization’s environmental, social, and
governance programs. Archer ESG delivers business leaders a complete and aggregated view of the organization’s value chains ability to meet its social and sustainability goals.
Frequently Asked Questions:
What is environmental social and governance risk?
Environmental, social, and governance risk is the set of potential of negative consequences for a corporation pertaining to the environment and sustainability, brand values, legal considerations, and ethical conduct towards both employees and the community. These are often classified as nonfinancial risks, but are increasingly shown to have the potential for negative financial ramifications.
What is an environmental social governance policy?
A corporate Environmental, Social, and Governance policy is a formal set of standards for a company’s operations. These policies detail how a company manages responsibility to the environment, the community, employees, and the world at large. They also include topics such as diversity, corporate leadership, executive pay, and shareholder rights.
What is an environmental social and governance report?
An environmental, social, and governance report is a document published by a company or organization about its ESG impacts due to ongoing day to day operations. It allows for transparency into how a company acts as a global citizen, and how it is addressing potential ESG risks. These reports are often used by regulators and investors who are increasingly attuned to corporate social responsibility.