ESG initiatives usually involve many aspects of a company’s business, and it’s important to secure alignment and buy-in across the organization early in the process.
Assemble a diverse team of representatives from finance, audit, legal, and other strategically important departments to create a comprehensive understanding and commitment to fulfilling their respective roles and appreciating the importance of compliance.
Considering the likelihood of more regulations being enacted in the years ahead, consider establishing a process for monitoring and adapting to new regulatory developments that may impact your business. It’s also important to be proactive about adding new capabilities as new requirements emerge.
Finally, it is important to provide enough context, so the ESG information you share is comprehensible to regulators, investors, and the public at large.
While private companies are largely spared from many ESG reporting requirements today, integrating sustainability into your business strategy can better position your company for potential regulation in the future and can create business value in the long term.
