In a world increasingly aware of environmental, social and governance (ESG) issues, Corporate Social Responsibility (CSR) has become a necessity. Investors, consumers and other stakeholders are increasingly demanding that companies integrate environmentally friendly, ethical and socially responsible practices into their operations.
ESG focuses on the criteria used by investors to evaluate a company, such as its carbon emissions or boardroom diversity. CSR, on the other hand, refers to an organization’s voluntary commitment to integrating ESG criteria into the extra-financial aspects of its business.
In accordance with Directive (EU) no. 2022/2464 of December 14, 2022, large companies and small and medium-sized enterprises will have to include, in their management reports, information that makes it possible to understand the company’s impact on sustainability issues, and how these sustainability issues influence the development of the company’s business, results and situation.
Here are a few recommendations you can implement to comply with the principles of sustainability and social responsibility.
On the environmental front
You can take the following actions:
- Waste management or recycling: this involves setting up a selective sorting program on your company’s premises, working with recycling companies to recycle waste (e.g. installing recycling bins for paper, plastic and glass in every office, with clear guidelines on how to use them).
- Reducing greenhouse gas emissions and energy consumption: if you have the financial resources, you can convert your company’s fleet of cars to electric or hybrid vehicles, install solar panels on the roofs of your company buildings, replace old light bulbs with LEDs throughout the building to reduce energy consumption.
- Sustainable prevention of environmental risks: depending on your sector of activity, you can draw up an emergency plan to deal with chemical leaks, and set up protective barriers around sensitive installations. For example, you can organize an annual simulation of a chemical leak to test the responsiveness of the emergency response team.
- Respect for biodiversity: it’s a good idea to develop green spaces on your company site (e.g. create a company garden with indigenous plants to encourage local biodiversity), and to take part in reforestation programs in the regions where your company operates.
Sur le plan social
Here are some measures you can take:
- Respect for employees’ rights: you can set up staff training on labor rights, an employee complaints mechanism, annual awareness-raising sessions on workers’ rights with specialized external speakers.
- Respect for social dialogue: this can be achieved by setting up a joint committee of staff and management representatives to discuss employees’ problems and concerns, and by organizing quarterly meetings with trade unions. You can also set up a suggestion box where employees can anonymously submit their suggestions and concerns.
- Preventing accidents in the workplace: you can carry out regular staff training on safety measures, and daily inspections of safety equipment. For example, organizing twice-yearly fire evacuation simulations to test emergency procedures and identify areas at risk.
- Staff training: you can offer them online courses on subjects relevant to the job, or finance external training programs. Example: a subscription to an online training platform where employees can access courses on leadership, time management and other professional skills.
- Practices promoting staff well-being: setting up a rest room with relaxation equipment, organizing weekly yoga sessions, setting up a gym reimbursement program to encourage employees to stay in shape.
- Creating links with local communities: you can do this by sponsoring local events such as community fairs or sports competitions, organizing volunteer days for employees (participation in local environmental clean-up projects in collaboration with a local environmental protection association).
In terms of corporate governance
There are a few things you can do to ensure sustainable governance of your company:
- Anti-corruption: you can achieve this by creating an anti-corruption policy with clear guidelines on expected behavior. Example: setting up an anonymous hotline to report cases of potential corruption.
- Transparency on executive compensation: this can be achieved by publishing a detailed annual report on executive compensation (base salaries, bonuses and non-monetary benefits), organizing an annual meeting with shareholders to discuss this information.
- Setting up an audit committee: you can appoint an independent audit committee made up of members from outside the company, organize regular meetings to review the financial statements and hire a reputable external auditing firm to carry out regular, independent audits.
- Independent management of the organization: this can be achieved by separating the functions of Chairman of the Board and CEO, and appointing independent members to the Board of Directors to ensure effective supervision.
- Shareholder relations: organization of an annual general meeting to enable shareholders to put questions to management, regular publication of reports on the company’s performance. Example: organization of quarterly meetings with major shareholders to discuss growth strategies and shareholder concerns.
This means you have the measures in place to ensure your company’s sustainability, while complying with environmental, social and governance criteria.
However, you can ensure your company’s ongoing compliance with ESG & CSR standards easily and with complete peace of mind by using the governance, risk and compliance platform, Klivar.
Klivar gives you data on your environmental, social and governance performance; it identifies your organization’s risks in this area and provides you with policy templates and guides for implementing corrective measures.
