fbpx

An introduction to ESG and your organisation

Jan 13, 2023

In 2023, organisations are increasingly devoting resources to their environmental, social and governance (ESG) strategies so that they can make a positive impact not just on the environment and society but on their stakeholders, employees and investors.

ESG is becoming an increasingly important factor amongst governments, investors and clients as climate change is at the forefront of society’s consciousness. Businesses are needing to make significant changes quickly in order to conduct themselves in a way which benefits both the environment and the business itself. Each organisation’s ESG strategy is going to look different

What is ESG?

As the name suggests, businesses usually break down ESG into three ways they consider their impact: environmental, social and governance. These three factors inform investors and other stakeholders.

Environmental:

This is an organisation’s impact on the environment such as through physical climate risks. Organisations may consider their carbon footprint and pollution as part of ‘environmental’ and work towards goals in line with their regulators or what their competitors and clients are doing in relation to environmental factors.

Social:

This measures how an organisation treats its employees and customers and forms part of the wider society.

Governance:

This is how an organisation operates in terms of its shareholder and board rights and internal controls.

What can ESG look like?

The impact and visibility of ESG will of course vary from company to company, given the different strategies used to implement it, the different visions of the directors and shareholders and the input and enthusiasm from all employees. However, a reduced carbon footprint, a happier workforce and a well organised internal structure may all be good indicators that a company is working hard to implement ESG practices.

Training:

There are a range of things that we can offer you, your board and your employees training on. We can help to review your supplier contracts to ensure they have appropriate ESG measures in place, with the ultimate goal of helping your company achieve net zero. We can also offer employment contract reviews and can look to suggest new employee initiatives. We have a dedicated corporate governance team, who are on hand to review your internal policies and controls.

Policies & procedures

We can run through ESG policies with you and help you to create a clear procedure of how these will be introduced, enforced and empowered throughout your company. These can range from the very minor, for example, only expensing employee meals if they are vegetarian thus lowering economic impact, to the more significant, such as offering a discount on electric vehicles as a company car.

Monitoring

It is important to make sure that the policies and procedures that you have put in place continue to be monitored, evaluated and updated as necessary. Monitoring performance and progress is a key way to measure success and will help to indicate which of your policies is generating the most impact.

Due diligence and reporting

ESG due diligence will deliver insights into how a company operates their ESG, including a review of the efficiency of their policies, their performance, any past statistics available and any improvements since this date. Due diligence reports should differentiate between each of the criteria: environmental issues, social issues and governance issues, whilst helping potential investors to mitigate risk.

At Herrington Carmichael we understand how ESG will be forming your future and we can tailor our advice to your strategy. Please get in touch to talk to a member of our Commercial Team.

This reflects the law and market position at the date of publication and is written as a general guide. It does not contain definitive legal advice, which should be sought in relation to a specific matter.

Cesare McArdle

Cesare McArdle

Legal Director, Commercial and Construction Law

Mark Chapman

Mark Chapman

Partner, Corporate and Commercial Law

Katrina Banks

Katrina Banks

Trainee Solicitor, Corporate & Commercial

Latest News & Insights

All in a Day’s Work: Employment Podcast Series

Our Employment team bring you a monthly podcast covering all aspects of Employment law for businesses and individuals. You can browse our podcasts below…

Contact us

    The information you submit will be handled in accordance with our privacy policy.

    Top Legal Insights

     

    Contract Law

    Material Breach of Contract

    What is a ‘material’ breach of contract by a party to a commercial contract? This is a critical issue regularly considered by the courts. What constitutes a material breach and what are the remedies?

    Property Law

    Commercial Lease: The Financial impact on Landlord and Tenant

    Coronavirus (COVID-19) and the restrictions now in place to control its spread, are having a significant effect on many business sectors.

    Divorce and Family Law

    Divorce in Lockdown: Can I get some discreet legal advice?

    We have spoken to clients who are unfortunately experiencing some family issues, and would like to obtain expert legal advice, yet don’t know how...

    Land & Property Dispute

    Restrictive Covenants – The Price of Modification

    Having identified that your land is burdened by a restrictive covenant and for the purposes of this article the covenant in question will be that only one residential building can be erected on the land. What do you do next?

    Wills, Trusts and Probate

    Why is having a will so important?

    It is entirely up to you if and when you want to create a Will, but it is important to be aware of the consequences of not having a Will.

    Award winning legal advice

    We are solicitors in Camberley, Wokingham and London. In 2019, Herrington Carmichael won ‘Property Law Firm of the Year’ at the Thames Valley Business Magazines Property Awards, ‘Best Medium Sized Business’ at the Surrey Heath Business Awards and we were named IR Global’s ‘Member of the Year’. We are ranked as a Leading Firm 2023 by Legal 500 and Alistair McArthur is ranked in Chambers 2022.

    Camberley
    Building 2  Watchmoor Park, Riverside Way, Camberley, Surrey  GU15 3YL
    +44 (0)1276 686 222

    Reading (Appointment only)
    The Abbey, Abbey Gardens, Abbey Street, Reading RG1 3BA
    +44 (0)1276 686 222

    Ascot (Appointment only)
    102, Berkshire House, 39-51 High Street, Ascot, Berkshire SL5 7HY
    +44 (0)1344 623388

    London (Appointment only)
    60 St Martins Lane, Covent Garden, London WC2N 4JS
    +44 (0)203 326 0317

    Wokingham (Appointment only)
    The Workstation Wokingham, Markham House, 20 Broad Street, Wokingham, RG40 1AH

    +44 (0)118 977 4045

    Email: info@herrington-carmichael.com

    Our Services

    Corporate Lawyers
    Commercial Lawyers
    Commercial Property Lawyers
    Conveyancing Solicitors
    Dispute Resolution Lawyers
    Divorce & Family Lawyers
    Employment Lawyers
    Immigration Law Services
    Private Wealth & Inheritance Lawyers
    Startups & New Business Lawyers

    © 2022 Herrington Carmichael LLP. Registered in England and Wales company number OC322293.

    Herrington Carmichael is authorised and regulated by the Solicitors Regulation Authority with registration number 446245.

    Pay Online

    Privacy Policy   |   Legal Notices, T&Cs, Complaints Resolution   |   Cookies 
    Client Feedback   |  Diversity Data