Creating an ESG Process

Posted by

Lynne Callister

on 03 Aug 2017

By building business ethics in tandem with compliance you will boost confidence among regulators, stakeholders and customers alike.

Creating an ESG Compliance Process

PwC compliance study findings

  • 98% of senior leaders said they were committed to compliance and ethics
  • 67% had a process to identify the owners of compliance and ethics-related risks
  • A third had an officer in overall charge of compliance and ethics
  • 56% of companies didn't have a Chief Ethics Officer
  • 20% of corporate boards had formed separate ethics committees
  • 82% of leaders communicated ethics with staff, but 46% in meetings or by email

You can read the full results on the PwC website.

Free Compliance Culture eBook

How to build a ESG process

1. Set policies, controls & procedures

Decide what's important and how you're going to achieve it.

2. Arrange effective compliance oversight

Get the "tone from the top" right, and appoint someone with overall responsibility for compliance/ethics.

This increases accountability and ensures things get done.

3. Conduct due diligence

Conduct adequate due diligence on all business partners, including associates and third parties.

Make sure you're not delegating authority to those who are unfit or unsuitable.

4. Provide information & training

Make sure everyone understands your compliance programme, rules and expectations.

Be careful how you do this too - put your compliance and ethics messages front and centre, rather than a 5-minute add-on at the end of business meetings.

5. Monitor & audit behaviour

Ask yourself - Is it achieving the desired results? How do you know? Is it effective? Are the rules or policies doing as expected? Can anything be improved? If so, how?

Data should be collected to ensure that monitoring is objective.

6. Use enforcement to deal with violations

Make sure that rules are applied consistently and you respond to all breaches effectively.

Publicise cases (while balancing the need for confidentiality) so offenders are clearly seen to face sanctions for violations.

Use information about violations to improve your C&E programme for the future.

Compliance Culture eBook

Looking for more compliance insights?

If you'd like to stay up to date with best practices, industry insights and key trends across regulatory compliance, digital learning, EdTech and RegTech news subscribe to Skillcast Compliance Bulletin.

To help you navigate the compliance landscape we have collated searchable glossaries of key terms and definitions across complex topics including GDPR, Equality, Financial Crime and SMCR. We also track the biggest compliance fines, explaining what drives them and how to avoid them.

You can follow our ongoing YouGov research into compliance issues, attitudes and risk perceptions in the UK workplace through our Compliance Insights blogs.

Last but not least, we have 60+ free compliance training aids, including assessments, best practice guides, checklists, desk-aids, eBooks, games, handouts, posters, training presentations and even e-learning modules!

If you've any questions or concerns about compliance or e-learning, please get in touch.

We are happy to help!

Compliance Essentials

Compliance Essentials Library is our best-selling comprehensive corporate training solution.

100+ e-learning and microlearning courses that help companies from SMEs to multinationals achieve compliance success.

Start a Free Trial