Deciphering the ESG Alphabetti Spaghetti
NED Special Interest Group “Sustainability Soup” via Zoom 18th September 2023
An unintentional (I hope) consequence of ESG is the many TLAs and Acronyms. What are they? Why do they exist? Who invented them? How important are they? What do they accomplish? When do they apply?
NEDs must understand the Alphabetti Spaghetti else drown in the alphabet soup.
This event is for us to gain from each other a better understanding of the many three (of more) letter abbreviations that circle around environmental, social and governance aspects. Is ESG ‘sustainability by another TLA?
NEDs need to understand as much as they can about the various ESG standards their organisations must adhere to. For larger companies, or those organisations that are heavily regulated, ESG compliance and reporting are becoming a necessity. Greenwashing is the key risk. Found wanting means loss of reputation and fines.
Once we talk about ‘sustainability’ rather than environmental, social and governance – and many now are – we need to understand the 17 OECD (Organization for Economic Cooperation and Development) sustainability goals are OECD and the Sustainable Development Goals: Delivering on universal goals and targets – OECD and then branch out to climate change by understanding the TCFD requirements (Task Force on Climate-related Financial Disclosures) Task Force on Climate-Related Financial Disclosures | TCFD) (fsb-tcfd.org). After that?………
Sue Milton, NED-SIG coordinator and XTEND committee member, will lead the discussion. Sue is not an expert but hopes the collective knowledge of attendees will help increase understanding. Sue is a concerned citizen wanting better corporate governance which, of course, includes ESG practices.
On ESG matters, Sue engages with the FRC (Financial Reporting Council About the FRC | Financial Reporting Council and FRC work on ESG and Climate related reporting | Financial Reporting Council), the ISSB (International Sustainability Standards Board IFRS – International Sustainability Standards Board) and the IAASB (International Audit and Assurance Board About IAASB | IAASB and IAASB Begins Work on Global Standards for ESG Assurance – ESG Investor).
Contact Details
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