2ISO - mcdonald-associates.ca consulting services

Two emerging trends that have been pushing for the reporting of environmental, social and governance (ESG) information for investors:

a) Stock exchanges requiring companies to report on ESG issues, which will affect any investment with an initial public offering (IPO) ;

b) Government regulations mandating that certain companies, both public and private, report this type of non-financial information.


https://rmsa-edu.uk/wp-content/uploads/2016/07/Vol-2-Issue-2_ESG-Integration-An-Overview-of-ISO-90012015.pdf

ESG refers to the three main subject areas of sustainable development for measuring the risks and opportunities on business performance. Each of these factors covers issues including but not limited to:

1) Environmental factors include gas emissions, pollution, natural resource consumption, waste management and associated opportunities to reduce environmental impact.
2) Social factors including a wide range of issues related to stakeholders, such as health and safety for employees, human rights, community development, and labour standards.
3) Governance is the system of internal policies, procedures and controls that makes up the management structure of a company. Factors include director remuneration, regulatory compliance, conflicts of interest, risk management and transparency.
4) Product responsibility is the subject area concerning customers, including quality, health and safety, and environmental responsibilities for products and services, as well as ethical marketing.

ESG integration refers to the incorporation of ESG subject areas, aspects and key performance indicators into the corporate strategy and processes of the organization.

This requires the integration of different management systems (ISO 9001, ISO 14001, OHSAS 18001 and other standards) into a single responsible management system.