Environmental, Social and Governance (ESG) – An old wine in a new bottle!
That discussing sustainability in the boardroom is just ‘a good thing to do’ or carrying an opinion that sustainability is ‘a feather in the cap’ is an old school of thought!
Stakeholders of companies, with a special mention to the shareholders, market regulators and local community are no longer ignorant of the monumental disaster that failed businesses could have, not only on the environment and the society but also on the economy of the country, as well. Since the past two and half decades, the dynamic subject of ‘sustainability’ has kept on evolving and so has its ‘nomenclature’– the recent form being ‘ESG’.
From an age-old concept of ‘single materiality’ focused matters, on account of the hawk’s eyes of primarily the investors and regulators, the concept of ‘double materiality’ is now taking a precedence, which is incidentally gaining more traction and attention in the boardrooms. Capital markets across the globe are therefore focused on value creation by organizations, through improved financial returns and governance, while ensuring reduced environmental burden and larger benefits to the society, to ensure long term sustenance of the business, as well as, act more responsibly towards the stakeholders, the environment and the society, within which the business thrives.
Get in touch with Experts
Rajib Debnath
Partner
Neha Malhotra
Partner
Our Service Offerings
- Conducting internal reviews and facilitate in third-party assurance services for:
- Sustainability/ESG and Developmental/Social Responsibility performance audits
- Compliance audits, based on applicable Environmental, Health, Safety and Social laws of the land and corporate policy
- Financial Accounting of Social Responsibility, ESG/Sustainability performance
- Supply Chain’s performance focused on ESG and compliance
- Approval of projects through ESG financial instrument-based frameworks
- Decarbonization and Natural Resource Management performance
- Assurance engagements are facilitated based on national/international non-financial assurance standards, such as ISAE 3000 (Revised), IS 26002:2022 and AA 1000AS for conformity assessment against applicable national/global Sustainability and Developmental sector frameworks and laws of land, wherever applicable.
- Conducting internal and third-party assurance services for:
- Sustainability/ESG and Developmental/Social Responsibility performance audits
- Compliance audits, based on applicable laws of the land and corporate policy
- Financial Accounting of Social Responsibility, ESG/Sustainability performance
- Supply Chain’s performance focused on ESG and compliance
- Assurance engagements are facilitated based on national/international non-financial assurance standards, such as ISAE 3000 (Revised), IS 26002:2022 and AA 1000AS for conformity assessment against applicable national/global Sustainability and Developmental sector frameworks and laws of land, wherever applicable.
- Development of a Sustainability/ESG Policy
- Development of framework for Implementation, Monitoring, Review & Reporting of Sustainability/ESG performance
- Stakeholder Consultation and Engagement for identification of matters that impact stakeholders and business
- Single and Double Materiality assessment for identification of material matters relevant to the organization, followed by policy development for respective material matter
- Techno-economic feasibility analysis of material issues
- Strategy development for improving ESG/Sustainability performance
- ESG Cost Accounting to reduce liabilities and improving monetized returns
- Improving ESG Credit Rating for Enhancing Investor’s confidence for Improved Investment
- ESG Report Development as per national/global reporting frameworks
- Trend analysis of past ESG performance for predicting future performance
- Development of Environmental, Health, Safety & Social (EHS&S) Policy
- Development of framework for Implementation, Monitoring, Review & Reporting of EHS&S performance
- Assessment of compliance of EHS&S legal requirements,
- Techno-economic feasibility analysis of EHS&S based material issues
- Strategy development for improving EHS&S performance
- Trend analysis of past EHS&S performance for predicting future performance
- Conversion of identified ESG/CSR specific material and other priority matters into performance indicators
- Assessment of baseline and scientifically drawn targets for performance indicators
- Benchmarking of the performance indicators with the peers, business sector and national level metrics
- Sustainability cost accounting for reducing liabilities and improving monetized returns
- Strategy development for improving the performance of the indicators
- Identification of ESG matters that has an adverse effect on stakeholders and organization
- Assessment of – cost of liabilities emerging from such adverse matters, or projects undertaken; cost of opportunities arising from ESG projects; wealth created from social projects at community level
- Assessment of impact at the country’s economic level due to the ESG and Social welfare activities of organizations
- Techno-Economic-Commercial feasibility analysis to explore options to reduce liabilities
- Strategy development for improved monetized returns
- Green-house gas accounting of products/services, inclusive of operations in supply chain
- Lifecycle assessment of Green-house gas emissions of products and services
- Assessment of baseline and scientifically drawn targets
- Strategy development for decarbonization through application of various climate change frameworks
- Climate Change – Adaptation and Mitigation
- Climate change action plan for cities
- Identification of projects that result in carbon sequestration and abatement of carbon emissions, resulting in potential tradeable carbon credits
- Registration of projects with national/voluntary carbon credit registration authorities
- Facilitation in periodic monitoring of the carbon credit accrual projects
- Identification of carbon credit buyers and facilitation in carbon credit trading
- Identification of CSR projects and Implementing Agencies prior to on boarding them for implementation
- Sourcing of CSR funds for implementation of CSR projects
- Stakeholder Consultation and Engagement for identification of matters that impact stakeholders, primarily the beneficiaries and business
- Double Materiality assessment for identification of matters relevant to the organization
- Techno-economic feasibility analysis of CSR based material matters
- Development of CSR Policy
- Development/Design of a CSR framework to facilitate Identification, Planning, Implementation, Monitoring, Review and Reporting of CSR performance
- Strategy development for improving CSR performance
- Trend analysis of past CSR performance for predicting future performance
- Assessment of ESG performance of Supply Chain and matters that may pose a threat upstream or downstream of the supply of products/services
- Sustainability/ESG Policy and Framework Development for Implementation, Monitoring, Review & Reporting of ESG performance by suppliers
- Development of frameworks for periodic monitoring and evaluation of ESG performance of suppliers
- Development of an ESG Rating model for suppliers
- Development of platform for assessment of ESG performance of Supply Chain
- Digital assurance of ESG/CSR performance
- DDR of ESG or specifically Environmental, Health, Safety and Social operations and related performance prior to merger/acquisition
- DDR of ESG performance prior to investment
- DDR of compliance requirements against applicable laws prior to merger, acquisition or investment
- DDR of Developmental/CSR programs prior to implementation
- DDR of CSR Implementing Agencies prior to on boarding them for implementation
- Identification of ESG risks in ESG funds, where invested, with a focus on compliance requirements against applicable laws, prior to investment
- Development of a monitoring and verification mechanism for periodic review of ESG specific material matters
- Assessment of opportunities and liabilities arising from ESG specific matters, wherever practicable, in a monetized form for assessing the impact on investment
- Strategy development for mitigating adverse impacts arising from ESG matters
- Applying universal financial instrument frameworks to raise money for sustainability, social and green bonds earmarked for green and socially beneficial projects
- Facilitating in registration of the project with the relevant green bond framework and approval of the same from relevant authorities/market regulator
- Development of a monitoring and verification mechanism for periodic review of ESG performance of the projects
- Water – Water Neutrality, Socio-Economic Impacts on account of ground-water recharge, impact on the food security and national economy
- Waste – Waste minimization, recycling of wastes and monetization from wastes
- Development of NRM and Circular Economy policy
- Development of framework for Implementation, Monitoring, Review & Reporting of NRM and CE performance
- Biodiversity – Stakeholder Engagement & Consultation; Development of Implementation, Monitoring, Review and Evaluation Framework; Preparation of Report
- Development of Human Rights Policy
- Development of framework for Implementation, Monitoring, Review & Reporting of Human Rights performance
- Stakeholder Consultation and Engagement for identification of human rights-based matters that impact stakeholders and business
- Materiality assessment for identification of material matters relevant to the organization
- Strategy development for improving human rights performance
- Development of Anti-Corruption, Ethics, Transparency and Governance Policy
- Development of framework for Implementation, Monitoring, Review & Reporting of Anti-Corruption, Ethics, Transparency and Governance performance
- Materiality assessment for identification of governance-based material matters relevant to the organization
- Strategy development for improving performance of governance in organizations
- Energy – Demand and Supply
- Strategy development for reducing energy consumption
- Renewable Energy & Renewable Energy Credits
- National/international sustainability frameworks relevant to Sustainability, ESG and Developmental/CSR segments
- Specific areas of Sustainability/Developmental/CSR services
- of India specific notifications
- New/Upcoming ESG, Sustainability and CSR frameworks
- Audit/Assurance of non-financial performance
