ESG is having an increasing impact on the performance and value of companies. It includes policies on environmental, social and corporate governance factors. It is important to consider the perspective and expectations of various stakeholders when creating ESG activities.
LEGAL AND REGULATORY REQUIREMENTS
There are several centers and legal acts that determine ESG policies to the main extent. Among the most important are: CSRD (Corporate Sustainability Reporting Directive), TCFD guidelines, EU taxonomy, SFDR (Sustainable Finance Disclosure Regulation). Having a strategy in this area is not a matter of nice to have, but already a must have.
WHAT EXACTLY IS ESG?
ESG – environmental, social and corporate governance stands for environment, social and corporate governance. It is these aspects that should be paid attention to by companies, entities, organizations that care not only about customers, but also about investors, for whom sustainability policy plays an increasingly important role. ESG is now an important factor taken into account when making business decisions in many companies and beyond. Investors often choose companies that match their values on this basis.
ENVIRONMENT – When we talk about the environment here we mean energy consumption, waste management, emissions, or compliance with government environmental regulations. SOCIAL – Social criteria are related to business relations inside and outside the company. They include, among others, respect for human rights and the promotion of diversity and equality among employees. Investing in human capital, or taking care of relations with the local community. GOVERNANCE – And when it comes to corporate governance, issues related to board structure, shareholder rights, compensation or corruption are important.
CITIES AND ESG
ESG is not exclusively the domain of private business. The City of Toronto released its first-ever Environmental, Social and Governance (ESG) Report in 2021. This annual report outlines how the city is focusing on ESG opportunities and risks within the framework of strategic priorities, sustainable financing and socio-economic performance. Toronto is the first government in Canada to release an annual ESG report reflecting its commitment and performance in each of three areas: environment, social well-being and governance.
The city strives to be a leader in making a positive impact on key ESG priorities through engagement, innovation and transparency. It is taking an integrated ESG approach, with responsible practices, to build a sustainable and resilient foundation for delivering high quality services and value over the long term. A number of coordinated strategies have been put in place to achieve these goals, such as the TransformTO Climate Action Strategy, the HousingTO 2020-2030 Action Plan, and innovative project financing programs that improve ESG-related outcomes. Toronto strives to be a caring and welcoming city that invests in quality of life for all, a goal that includes social and economic well-being and inclusion. Strategic priorities include preserving and creating affordable housing, investing in people and neighborhoods, and affordable and accessible transportation.
