What is ESG? 

At BDO, we view sustainability through the universally recognised ESG framework - environmental, social and governance matters. Using the ESG framework helps to unpack the wide-ranging risks and metrics that fall under the term ‘sustainability’. ESG cuts across the functions of a business to assess how an organisation manages risks and creates long-term value.

Why is ESG important?

ESG is becoming critical as part of a business’ social licence to trade. Businesses that fail to act in this space risk potential impacts on their reputation, and market opportunities. A focus on ESG can do more than just meet growing stakeholder demands. Savvy boards are also recognising the broader business benefits, including the potential to create and sustain long-term value through:

• Corporate reputation – ESG can enhance a company’s license to operate making it easier to accomplish business objectives and respond to crisis scenarios with key stakeholder groups.
• Risk reduction – ESG can assist with the identification of immediate and long-term risks depending on the industry and business model.
• Opportunity management – Shifting market and non-market conditions can expose unmet needs for new products and/or services, potential customer bases, and potential strategic relationships for addressing ESG issues.
• Culture and intrinsic values – ESG maturity is an indicator of a company’s commitment to building a high-performing, purpose-driven workforce and inclusive culture.

What are the ESG factors?

While there is no universal standard, there are some common ESG factors that businesses tend to acknowledge. ESG factors can also be interlinked and may cut across more than one of the environmental, social, or governance buckets.

A BDO Sustainability expert can help you assess which ESG factors are most relevant for your business and how to start measuring your baseline. From managing carbon emissions to diversity and inclusion to ethical behaviour reporting, here are some examples of the ESG factors that might be important to your strategy and stakeholders:

ESG & Sustainability Services and Solutions (adapted from BDO USA website)

As ESG takes centre stage in a rapidly changing business landscape, the question is—how is your organization advancing toward true sustainability?

Every organization is at a different stage in its sustainability journey.

At BDO, we know that one size does not fit all. Whether you’re starting at the beginning with a sustainability self-assessment, adapting your ESG reporting to comply with new regulations, developing a net-zero roadmap, or designing a long-range climate change mitigation plan, we will meet you where you are. 
 
Where are you on the sustainability journey?

Initiating

Initiating your sustainability journey - How BDO Can Help: 

• Benchmarking and self-assessment
• Materiality assessment
• ESG program design with processes and controls
• Governance structure
• Carbon footprint measurement
• Development of a baseline report

Complying 

Complying with ESG and sustainability reporting requirements -  How BDO Can Help:

• SCA listed entity sustainability reporting requirements
• ISSB readiness and reporting (IFRS S1 and S2)
• ESG attestation readiness
• Resiliency assessment
• ESG gap analysis
• Industry/peer benchmarking

Proactive

Improving our ESG ratings  - How BDO Can Help:

• Ratings diagnostic
• Gap analysis
• Enterprise risk assessment
• Supply chain and global value chain assessment
• ESG attestation
• Climate risk and vulnerability assessment

Strategic

Develop a net zero, decarbonization or emissions reduction plan – How BDO Can Help:

• Energy transition roadmap and planning
• GHG mitigation and offset strategy
• Supply chain assessment
• Waste reduction
• Lifecycle analysis

Integrated

Transforming our business to align with our sustainability goals – How BDO Can Help:

• Integrated sustainability strategy and operational transformation
• End-to-end process and cost optimization and waste reduction
• Full spectrum enterprise risk management
• Organizational design and optimization
• Technology enablement and systems selection