Customers, employees, and investors are increasingly demanding ESG transparency from companies. Regulators are also starting to require additional disclosure to create comparability between companies. But how can companies ensure good ESG governance when defining ambitions, managing execution, and reporting on their ESG achievements?
In a new KPMG report, ESG governance: Why it’s everyone’s business at your company, we explore the challenges that organizations face in creating effective ESG governance and discuss emerging best practices from our first annual ESG survey and work with clients.
This isn’t about Governance with a capital ‘G’ (e.g., executive pay, board diversity) but governance with a small ‘g.’ To realize ESG aspirations, we believe it is critical that a company creates an ESG-aware culture that permeates the organization so that achieving ESG targets becomes part of “business as usual” for every employee. It is the job of the company leadership to determine the right ESG strategy, but it takes a team effort by the whole organization to execute.