We recently published an article on HSE Network exploring the role of legal compliance in building credible ESG commitments.
The visibility gap in ESG
Environment, Social and Governance (ESG) commitments have become crucial for organisations that are looking to operate responsibly and sustainably. The Environmental and Social initiatives of ESG tend to receive the most attention and publicity, whereas the Governance pillar (and legal compliance in general) tends to receive less focus. This is understandable, as Governance initiatives can be dry and more challenging to communicate. However, Governance and legal compliance form the foundation of mandatory obligations that the voluntary ESG work builds upon.
When the foundation cracks
At iCOR, we have been thinking about what happens when legal compliance gaps emerge in organisations that have made significant investments towards visible and meaningful ESG initiatives. When compliance breaches surface, they can quickly undermine the reputation, trust, and credibility that the Environmental and Social work sought to build. This can lead workers, customers, and stakeholders to question the sincerity of voluntary ESG initiatives: was the visible, voluntary Environmental and Social work genuine, or was it a distraction from deeper sustainability issues?
Protecting ESG through compliance
In our recent article for HSE Network, we explore how organisations can strengthen their ESG commitments by ensuring their legal compliance systems are robust, up to date, transparent, evidence-based, and therefore credible. We prompt organisations to consider several questions about their compliance system, and argue that a stronger legal compliance foundation protects the Environmental and Social work already underway.
Read the full article on HSE Network: Compliance as the Foundation for ESG