Ask the Expert, ESG

Ask the Expert: Assessing the Effectiveness of ESG

In our latest installment of Ask the Expert, brought to you by KPA, we hear from Jade Brainard, senior product director for KPA EHS software solutions, about how to assess the effectiveness of Environmental, Social, and Governance (ESG) initiatives.

Q: How should my organization assess the effectiveness of our ESG initiatives?

Assessing the effectiveness of ESG initiatives is an important step for organizations to ensure they are achieving their business goals and positively impacting society. Taking a systematic approach is critical:

  • Set objectives
  • Select the appropriate metrics
  • Collect data
  • Analyze your results
  • Report progress

By evaluating your data and flowing it into your reporting framework, you can pinpoint improvement areas and tackle obstacles that stand in your way. You’ll want to determine not only what you’re going to measure but how often as well.

Q: What’s the best way to approach ESG reporting?

Start by defining your company’s ESG strategy and goals and then identify the key metrics you will use to measure progress towards those goals. Engaging with stakeholders, including investors, employees, customers, and communities, will help to establish expectations and priorities. You should also consider using existing frameworks, such as the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB), to guide your reporting. Also, regularly review and update your ESG reporting to reflect changes in your strategy, goals, performance, best practices, and standards in the field.

Q: How should we determine measurement strategies for ESG?

One approach is identifying the key ESG issues most material to the company’s operations and stakeholders. These issues can then be prioritized and translated into specific metrics that can be measured over time. Capitalize on the data you already have available, such as CO2 & GHG, water usage, emissions, and waste. By using data-driven approaches, companies can develop effective ESG measurement strategies that can help drive sustainable business practices.

Q: How can we identify potential ESG risks?

Identifying potential ESG risks involves analyzing a company’s operations and behavior to understand its potential impact on the environment, society, and stakeholders. Examining sustainability reports, which often disclose information about the company’s environmental impact, labor practices, and governance structure, is one effective way to identify ESG risks. Additionally, conducting stakeholder surveys, analyzing media coverage, and reviewing regulatory filings can also provide insights into a company’s ESG risks. By identifying and monitoring these risks, investors and stakeholders can make more informed decisions about the companies they support or invest in.

About the Author: Jade Brainard is the Senior Product Director for KPA EHS software solutions. She has been working with KPA products for over 14 years with a focus of providing turn-key safety management software solutions for KPA customers. She works closely with many types of organizations including construction, energy, manufacturing, and insurance to understand how technology can be leveraged to effectively manage safety, reduce risk, and stay compliant with an ever-evolving regulatory environment.

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