ESG

Sustainability is the goal and ESG is the framework for how to achieve sustainability. 

ESG is about building an ESG corporate governance strategy and to use this to implement measurable activities that has tangible effect.

ESG stands for:

• E - environmental
• S - social (focusing on human rights etc.)
• G - governance (for example adherence to law, with focus on compliance with anti-bribery regulation, trade regulations, etc.)

There is an increasing focus on ESG, both from legislators and from companies that take responsibility by implementing ESG activities beyond legislation. Implementation of ESG is also an increasingly important element for many companies when deciding who to choose as business partners, and especially who to engage as suppliers or service providers. A well implemented ESG strategy can be a competitive advantage. 

One example of implemented legislation is the Norwegian Transparency Act, that places obligations on Norwegian companies of a certain size to carry out and account for due diligence of their entire supply chain. In addition, such companies have a duty to answer requests for human rights information from anyone in the world within three weeks. This is a complex task, and especially for companies with an international supply chain.

Even though this law applies to Norwegian companies of a certain size, it is also relevant for both foreign companies and for smaller Norwegian companies that want to cooperate with companies that are obligated under the law. Other countries have also implemented or are implementing similar legislation, including the EU.

Another example is the need for a sanctions compliance program to ensure compliance with appliable sanctions, including sanctions imposed by UN, EU and USA. Breach of sanctions can have devastating effects on a company, and a proper sanctions compliance program will significantly lower the risk of sanctions breach or the consequences of breach.

I can support you to make an ESG strategy and risk assessment of your supply chain, in close cooperation with key stakeholders in your organization, and to roll this out both internally and towards your supply chain.

Please feel free to reach out if you would like my support with ESG.