distinct functions of the board in relation to management helps establish a strong board-management relationship .
Marten Möller , ESG Lead at Algbra , states that there are a number of steps companies can take to ensure that their governance practices align with ESG principles .
“ Firstly , ESG should not be considered a bolt-on ,” Möller says , “ but should be seen as foundational to a company ’ s governance and overall strategy . It is becoming increasingly clear that companies scoring high on ESG metrics are likely to outperform their counterparts . Making the business case important for companies seeking to start their ESG journeys .
“ Secondly , it ’ s imperative to develop a clear and comprehensive ESG strategy that outlines the company ' s commitment to ESG principles and sets specific targets and goals . The strategy should be aligned with the company ' s overall business strategy and consider the needs and expectations of all stakeholders .”
Möller continues to explain the importance of establishing an ESG committee that is responsible for overseeing and implementing the ESG strategy , as well as conducting regular ESG assessments to track progress . ESG trackers should cross-reference to the UN ’ s SDGs and should cover the implementation of policies and procedures that support the ESG strategy and goals . Although improving a business ’ s governance can seem overwhelming , a good place to start is to take the B Corp Impact Assessment . B Corps are businesses or organisations that have voluntarily met the highest standards for social and environmental performance , having passed the rigorous testing – and annually evaluating measurements and methods – to demonstrate the commitment to meet
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