ESG – Environmental, Social, Governance – remains front-page business news. Organizations around the world and across industries are challenged to define, implement, and report on ESG. The pressures are coming from all directions: investors, customers, employees, regulators, and activists. The reality is that ESG has teeth, and organizations have to do something about it.
Previous iterations of ESG were Corporate Social Responsibility (CSR) and Sustainability. These were often passed around the organization as a hot potato and often landed in the lap of marketing as a branding exercise. This is not the case with ESG; the risk exposure to the organization is too great. The goal is to be an organization of integrity to ensure that the values, ethics, statements, commitments, relationships, and transactions are a reality in practice, process, relationships, and transactions.
However, understanding ESG is complex. What I see happening in organizations reminds me of the parable of the blind men and the elephant. One blind man touches the tail and thinks it is a rope, another touches the body and feels a wall, and another touches a leg and says it is a tree. The same is happening with ESG as different functions/departments see what impacts them. Some focus on the E for the environment and think that is the most important since it leads the acronym ESG. Others are focused on the S, and others are the G. All three are critical and intersect with each other.
There is no single global standard for ESG. There is some reporting guidance, and the most popular is the Global Reporting Initiative (GRI), and what is now the Value Reporting Foundation (the merger of the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB)). Nothing is complete; they each have their different perspectives. The organization is left to develop a strategy and process that delivers what they need to report to their respective/interested stakeholder groups.
This GRC Red Flag Series will explore the role of GRC in delivering and automating ESG reporting and accountability in the organization. Organizations need structured guidance on how to deliver on ESG strategy and processes across the diverse areas of ESG.
In our interview and panel discussion, attendees of this GRC Red Flag Series will learn about:
Drivers and trends advancing ESG in the organization
Developing a cohesive ESG strategy and process
Providing accountability and integrity in ESG initiatives
Defining ESG processes that are enabled through a GRC capability model
Automation of ESG and GRC with technology that makes ESG efficient, effective, and agile
Our host Michael Rasmussen
Michael Rasmussen is an internationally recognized pundit on governance, risk management, and compliance (GRC) – with specific expertise on the topics of GRC strategy, process, information, and technology architectures and solutions. With 27+ years of experience, Michael helps organizations improve GRC processes, design and implement GRC architectures, and select solutions that are effective, efficient, and agile. He is a sought-after keynote speaker, author, and advisor and is noted as the “Father of GRC” – being the first to define and model the GRC market in February 2002 while at Forrester Research, Inc.
Archer empowers organizations to manage multiple dimensions of risk on one platform with on-premises and SaaS offerings, and quickly implements industry-standard processes and best practices for advanced risk management maturity, informed decision-making, and enhanced business performance. Archer has been recognized as a Leader in the most recent Gartner Magic Quadrant reports for IT risk management, IT vendor risk management tools, and business continuity management program solutions, worldwide.