While some companies delegate responsibility for environmental, social and governance (ESG) matters to internal departments, this approach may not be the most effective for your ESG transformation. For maximum impact, it is important to embed ESG principles at the highest levels of corporate governance.

This ensures that ESG principles are given due weight and can be fully integrated into the corporate strategy, culture and business model.

The benefits of embedding ESG into the governance structure include:

1. Better alignment of your ESG strategy with the broader corporate strategy.
2. Effective and efficient implementation of ESG initiatives.
3. Increased board transparency, accountability, and control over ESG matters.
4. Effectively assess and manage ESG risks.
5. Reassurance to stakeholders that sustainability will be a priority for the company.

However, there is no ‘one-size-fits-all’ approach to effective ESG governance. Renoir-CGI will analyse and assess your existing governance structure and recommend a tailored approach to embedding ESG throughout your organisation. This may include:

1. Assigning clear roles and responsibilities at board and senior management level.
2. Establishing a dedicated Sustainability Committee and Charter to oversee ESG initiatives.
3. Embedding ESG into performance and compensation structures.
4. Improving ESG knowledge and building internal capacities across all employees.