- Standardizing ESG Measurement
The approach that leads to performance
Leading businesses prioritize ESG by including it in their strategy, operations, and transparent reporting. Clear targets and roadmaps guide progress tracking and address factors like climate change.
Many countries regulate climate-related disclosures with an opportunity to align with global standards like UN’s SDGs, TCFD, and ISSB that facilitates accelerated progress across diverse domains.
We add value by providing integrated measurement tools and solutions.
- Track and Measure
Methodology to track and measure ESG performance
1
Define ESG Objectives and Metrics
Identify the specific ESG objectives that are relevant to your company's industry and stakeholders. Establish key performance indicators (KPIs) and metrics for each ESG objective. These metrics should be measurable and at par with industry standards and best practices.
2
Stakeholder Engagement
Identify and engage with relevant stakeholders, including investors, customers, employees, local communities, and regulators. Understand their expectations and concerns regarding ESG issues. Incorporate stakeholder feedback into your monitoring and reviewing process.
3
Data Collection
Develop an effective system for collecting data related to ESG metrics. This may include environmental impact data, social responsibility initiatives, and governance practices. Ensure that data is collected consistently and accurately from various sources within the organization.
4
Data Analysis
Implement tools and methodologies for analyzing the collected data. Regularly assess your company's performance against established ESG metrics. Identify the trends, areas of improvement, and potential risks.
5
Benchmarking
Compare your company's ESG performance with industry benchmarks and peers. Also, identify areas where your company excels and areas that need improvement relative to industry standards.
6
Reporting
Develop a structured and transparent ESG reporting framework. Publish regular ESG reports that communicate your company's performance, initiatives, and progress towards goals. Use standardized reporting frameworks such as the Global Reporting Initiative (GRI) or Sustainability Accounting Standards Board (SASB) if applicable.
7
Continuous Improvement
Implement a feedback loop to continuously improve your ESG monitoring and reviewing methodology. Adapt to changing circumstances, emerging trends, and evolving stakeholder expectations.
8
Audit and Assurance
Conduct periodic internal and external audits to verify the accuracy and reliability of ESG data. Engage external assurance providers to validate your ESG reporting that enhances credibility.
9
Integration with Decision-Making
Integrate ESG considerations into strategic decision-making processes. Ensure that ESG metrics are considered in risk assessments and long-term planning.
- At a glance
How to measure your ESG performance
- Relevant and transparent ESG reporting builds trust among stakeholders. Varied standards have traditionally posed a challenge for many organizations.
- Leading ESG measurement frameworks are starting to evolve and this creates the possibility of a more standardized and dynamic landscape needed for tracking and measuring ESG performance.
- Additional ESG reporting regulations incentivize organizations’ ESG activities and help the businesses to create value for not only itself but for a range of stakeholders.
- Facts
Key Advantages of ESG Monitoring and Reviewing Methodologies in Sustainable Companies
- Enhanced ESG reporting regulations will encourage organizations to engage in ESG activities that fosters value creation for various stakeholders in the business landscape.
- 85% of individual investors express interest in sustainable investing which reflects a rising trend.
- Renewable energy attracted over half of global investment in new power generation in 2020.
- ESG-related shareholder resolutions are on the rise as investors demand greater transparency and action.
- Explore our related services
ESG Reporting and Compliance Consultancy Services
ESG Strategy and Roadmap
Implementation Plan
