A new ISACA publication discusses the importance of establishing an environmental, social and governance (ESG) framework and applying it to an enterprise’s daily operations.
ESG helps enterprises increase growth while reducing costs and risks. According to ISACA’s What Are You Doing About Environmental, Social and Governance Practices in Your Enterprise? white paper, “ESG embeds environmental and social investment into enterprise governance and encourages socially responsible investing in capital markets. Its key principle is that embedding environmental and social criteria into capital markets makes good business sense and can result in more sustainable markets and favorable social outcomes.”
The ISACA white paper:
- Provides an overview, scope and current status of ESG
- Describes the stakeholders of ESG and its importance to them
- Details the components of ESG
- Defines the business implications of ESG adoption
- Shares practical recommendations for successful deployment of ESG in your enterprise
ESG investment can help enterprises strengthen relationships with customers, suppliers, employees, regulators and the public. As noted in an ISACA Now blog post by Chetan Anand, “The purpose of ESG is to achieve multiple benefits for the corporation such as increased profits and enhanced shareholder confidence. The citizens and ultimately the earth also reap the benefits when ESG becomes part of the day-to-day culture and ethics of society.”
The COVID-19 pandemic caused many organizations to revamp their business models and, in many cases, served as a catalyst for more sustainable approaches to business operations and investing. ESG approaches align nicely with this trend and encourage sound corporate stewardship that strengthens the enterprise’s position in the community.
For more insights on ESG, download the free ISACA white paper.