ESG Monitoring and Goals Tracking: Integrating ESG in Everyday Operations

ESG Monitoring and Goals Tracking: Integrating ESG in Everyday Operations official banner (edited by: Rolyn May Galvez)

In a world where environmental concerns are becoming more and more prevalent, it is crucial to incorporate sustainability into an organization’s everyday operations, not only to ensure transparency of reports but also to determine how they can find the right tools and processes to aid in monitoring and tracking ESG goals. With this in mind, the Institute of Corporate Directors in collaboration with Azeus Systems Philippines Limited held a very informative and timely virtual event called 'ESG Monitoring and Goals Tracking: Integrating ESG in Everyday Operations', on March 30, 2023, as part of the Distinguished Corporate Governance Speaker Series (DCGSS) with Convene ESG, facilitated by Mr. Juan Gabriel Tomas IV, Mr. Lau Shih Hor, and Mr. Carmelo Alcala, and moderated by Ms. Katherine Pamintuan.

Dr. Carlos Jose P. Gatmaitan, Chief Executive Officer of the Institute of Corporate Directors (ICD), introduced this event as the first installment of the Distinguished Corporate Governance Speaker Series for this year. According to him, ESG is an effective tool for success that provides long-term value to stakeholders and ensures sustained future growth for companies who are striving to lessen their negative environmental effects and create a more sustainable business.

Mr. Juan Gabriel Tomas, Chief Risk Officer at RCBC, provided valuable insights about the motivations and drivers of regular ESG performance monitoring and shared the regulatory context, which is regarded to be the most important driver of all. In addition, he also talked about RCBC's ESG journey over the years and indicated how the performance standards are the pillars of the sustainability programs of the IFC. He also presented the RCBC's sustainability portfolio for the year 2022 and the different reporting framework that encourages management and supervisory oversight of sustainability risk. In line with his discussion on RCBC’s ESG journey, he also pointed out at the end of his presentation the achievement of RCBC in which they were able to cover 16 of the 17 UN SDGs with a positive outlook on continuous achievement and sharing of experiences.

Additionally, Mr. Carmelo Alcala, Compliance and Risk Officer and Data Protection Officer at Scrubbed Inc. discussed effective governance over ESG reporting and stated that ESG initiatives are typically delegated into teams and handled separately from the rest of the business, which reflects the poll responses to the question ‘Who owns the ESG reporting function and responsibilities in your organization?’, to which participants actively responded. He also highlighted essential actions that organizations can take in order to start embedding ESG in their operations, as well as the formal policies and processes for sustainability reporting.

Mr. Lau Shih Hor, CEO of Elixir Technology, provided helpful insights about tools and support to aid sustainability reporting. He guided the participants to answer a poll regarding the primary tools they use, and the majority of them answered email and Excel. Mr. Lau Shih Hor also shared useful information about the topics of data integration, technological solutions, and consultants, where he emphasized that the tools should be designed for the change and mixed data type.

To conclude, a panel discussion was held afterward to get insights from the speakers and answer questions from the participants in the event. The webinar ended with powerful closing remarks from Mr. Jerry Chua, where it was made very clear that sustainability should not be done as mere compliance, but rather should be taken seriously by organizations by implementing ESG into their daily operations.

KEY TAKEAWAYS:

● The five key actions to take as specified by Mr. Alcala, (1) conducting a materiality assessment, (2) implementing appropriate board oversight, (3) integrating ESG topics into the enterprise risk management process, (4) integrating ESG matters into the overall company strategy, and (5) implementing effective internal control

● There is no one size fits all approach to establishing governance over ESG reporting.

● The drivers of regular monitoring of ESG performance consist of external and internal drivers. For the external drivers, given are; 1) BSP Sustainable Finance Regulations and 2) SEC Sustainability Reporting Policy. On the other hand, the internal drivers are; 1) Commitment to Responsible Lending and Sustainable Finance, 2) Call to Climate Action, and 3) Advocacy to Raise Awareness.

● When it comes to the tools and support that the company needs in terms of the data for sustainability management, look for flexibility and adaptability in mixed data handling, full coverage of sustainability management, and assurance readiness.