ESG assessments refer to three key factors in the process of evaluating and measuring the sustainability of investments in companies or businesses. These factors are: environmental protection issues, social responsibility issues and corporate governance issues. Typical elements of environmental protection include: use of natural resources, energy efficiency, water and air emissions, waste generation, carbon dioxide emissions, sustainability initiatives. Some of the essential elements of social responsibility are: safety and health in the workplace, human rights, protection of personal data and privacy, employee training, diversity and opportunity policies, community programs. The elements of management are: business ethics, rights of owners, communication with interested parties, commitment of management.

The ESG assessment process should help better determine the company’s financial performance in the future, including looking at possible risks.

Conducting an ESG audit includes the following activities:

• Review of documentation submitted by the client
• Preparation for the implementation of the audit at the client’s location and submission of the audit plan
• An on-site audit includes a conversation with the management and part of the employees, a tour of the site and a review of the documentation on the site
• Primary summarization of results at the client’s location and presentation of conclusions on site
• Analysis of collected evidence and information and consolidation of conclusions
• Issuance of reports

Benefits of the organization based on ESG audit and assessment:

• Strengthening the corporate reputation among its customers
• Compliance with legal regulations
• A clearer presentation of your business strategy
• Demonstrating appropriate risk management
• Answers to questions from investors and suppliers and clients
• Demonstrating appropriate cost management
• Adequate response to competition challenges.

Attitude and expectations of key stakeholders towards companies that have carried out ESG assessments:

• Investors want to invest in companies that are active in the issue of sustainable development, so they consider such companies more reliable for a long time.
• Employees like to work for companies that demonstrate social impact, demonstrate ethical behavior and are committed to ensuring a balance between employees’ personal and workplace lives.
• Customers are increasingly choosing products and services that come from an environment that cares about the environment and where they can demonstrate transparency in their own supply chain.