“Standards in Support of ESG Reporting”

ESG standards (ESG – Environmental, Social, and Governance) represent a set of principles and criteria used to assess a company's impact on society and the environment, as well as the quality of its corporate governance, which are gradually becoming a key factor in the decision-making of investors and other stakeholders regarding investments and business operations. These principles are focused on various spheres of influence, primarily on:

• The environmental aspect, which considers the impacts a company has on the environment, through reporting on greenhouse gas emissions, resource usage, waste management, biodiversity conservation, and similar. Companies that successfully manage these aspects and demonstrate environmental responsibility are often more visible and attractive to sustainability-conscious investors.

• The social aspect refers to how a company manages its relationships with employees, suppliers, customers, and the community in which it operates, including employee rights, working conditions, diversity and inclusion, community engagement, and corporate social responsibility.

• The governance aspect encompasses a set of rules, controls, policies, and procedures that regulate management and oversight within a company, including corporate governance, transparency in reporting, ethical issues, conflict of interest resolution, and similar. A good corporate governance framework can help reduce risks and promote sustainable long-term growth.

The brochure published by CEN and CENELEC, “Standards in Support of ESG Reporting” helps interested parties to better understand the relation between European standards and ESG reporting, providing them with information on the benefits of applying standards and relevant examples.

Download the brochure on the following link: https://www.cencenelec.eu/news-and-events/news/2024/publications/2024-03-14-esg/.