Welcome to ESG Advising LLC

Helping you navigate the complexities of Sustainability/ ESG (Environmental, Social, and Governance) disclosure and reporting.

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ESG Briefly

Environmental:

What impacts a company has on the environment — its carbon footprint, waste management, water use and conservation, and the clean energy and technology it uses.

Social:

How a company deals with human rights, racial diversity in hiring, the health and safety of employees and board members, and community involvement.

Governance:

How a company is governed or managed — the quality of management and the board, diversity, executive compensation, shareholder rights, transparency and disclosure, anti-corruption, and political contributions.

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Climate change and fossil fuels

The fossil fuel industry faces many challenges in delivering affordable energy to the world while at the same time protecting the environment from carbon emissions.

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BenchMarking

We can taylor a relevant peer group to benchmark against based on market cap, area of operation, and product mix.

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The SEC Climate Rule

The SEC adopted a rule in March 2024 to enhance climate-related disclosures for public companies. The rule mandates companies to report on greenhouse gas emissions, climate risks, and their management strategies. However, the rule's implementation is currently stayed due to legal challenges from states and business groups.

Develop your sustainability program with our guidance: Understand its importance beyond compliance, form an ESG Committee across departments, conduct a materiality assessment to prioritize ESG issues, set clear, measurable ESG goals based on these priorities, manage data collection accurately, adopt recognized ESG reporting frameworks, engage stakeholders for feedback, draft transparent reports, seek third-party verification for credibility, communicate findings widely, and regularly review and iterate the process for continuous improvement and compliance with ESG standards.

Steps to follow

1. Understand the Importance

Why is it important for your business to develop and maintain sustainability disclosure and reporting. It is not just about doing good or meeting regulatory requirements.

2. Establish an ESG Committee

Have internal stakeholders involved- form a dedicated team or committee responsible for ESG strategy, data collection, reporting, and engagement. This could include members from various departments, such as finance, operations, HR, and marketing.

3. Conduct Materiality Assessment

Identify which ESG issues are most relevant to your business and your stakeholders. This involves assessing the potential impact of these issues on the company and the concerns of stakeholders like investors, customers, employees, and the community. Materiality is critical.

4. Set Clear ESG Goals and Metrics

Based on the materiality assessment, determine which elements need to be included in your reporting, and, if appropriate,  establish clear, measurable, and time-bound goals. Setting goals should be very carefully done to avoid the perception of green washing. Determine the key performance indicators (KPIs) you will use to measure progress against these goals.

5. Data Collection and Management

Identify sources of data required for each metric. Establish processes for consistent data collection, validation, and storage, ensuring data accuracy and reliability.

6. Adopt ESG Reporting Frameworks

Choose recognized ESG reporting standards or frameworks, such as the IFRS S1 and S2 standards supplemented by SASB Industry specific standards (there are 77 of them), the Global Reporting Initiative (GRI), or the Task Force on Climate-related Financial Disclosures (TCFD). Using established frameworks enhances the credibility and comparability of your report.

7. Engage Stakeholders

Regularly engage with your stakeholders (internal and external) to gather feedback and understand their evolving ESG priorities. This can be through surveys, focus groups, or one-on-one interviews.

8. Draft the Report

Compile the collected data, insights, and narratives into a comprehensive sustainability report. Ensure transparency, addressing both achievements and areas for improvement.

9. Third-party Verification

Consider having the report externally assured. This adds an additional layer of credibility and assures stakeholders of the report's accuracy.

10. Communication and Distribution

Publish the ESG report on your website and promote it through various channels such as press releases, investor communications, and social media. Ensure the report is easily accessible to all stakeholders.

11. Review and Iterate

After publishing, collect feedback, assess the effectiveness of the reporting process, and identify areas for improvement. Update your sustainability strategy and goals as necessary, reflecting the evolving business landscape and stakeholder expectations.

12. Ongoing Monitoring and Reporting

Sustainability is integral to your business strategy as it ensures continuous improvement and compliance with evolving environmental, social, and governance (ESG) standards. Regular sustainability reporting fosters transparency, engages stakeholders, and identifies risks and opportunities, enabling you to adapt proactively to regulatory changes and market demands. This ongoing process not only reinforces your commitment to sustainable development but also supports operational efficiency, innovation, and long-term financial performance by embedding sustainability into core business practices.

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