ESG regulation is becoming more detailed and comprehensive in many countries. Regulators are now expecting auditable proof of compliance from enterprises as well. It is important for companies to understand that ESG is not merely about doing the right thing but is also important from the perspective of long-term sustainability and return on investment.

The extra administration, complexity and need for an audit trail is prompting more companies to consider a software solution to handle their ESG compliance needs. EnGRC modules are ideally suited to seamlessly integrating ESG compliance activities and reporting into enterprise operations. Therefore, EnGRC minimises interference in operational activities while providing a centralised overview of status and monitoring progress. Automated workflows and alerts of tasks due even when not logged into the system keep an enterprise ESG program on track.

The Enterprise Risk Assessment and Management module EnRAM helps identify and evaluate the gaps between the company’s actual performance and its desired performance with respect to ESG parameters. Furthermore, the gap analysis is supported by action recommendations through the Enterprise Issue and Action Management module EnACT. Actions include guidance to address these gaps.

Regular internal controls aimed at maintaining and improving ESG compliance can be assigned through automated workflows using EnRICO the Enterprise Regulatory Compliance and Internal Controls Module. Reports, whether for internal or external use, serve as a risk assessment for the company to identify room for improvement in the existing structure and accordingly integrate actions or controls that can help enhance the position of the enterprise with respect to its ESG alignment.

ESG Assessment
The ESG Assessment conducted with EnRAM serves as a blueprint for the company’s ESG strategy. The aim as part of the assessment, is to identify goals and set realistic outcomes while keeping in mind different stakeholder groups. There is no one-size-fits-all approach as ESG materiality varies depending on the business and industry as well as the risk and opportunity factors in the sector.
The interactive Risk Matrix in EnRAM shows the current key ESG risks and their contribution to the companies’ overall ESG ratings. Details regarding each risk are available on the same screen as the Risk Matrix offering insight and the ability to make timely and informed decisions.
This process engages stakeholder with automated workflows to gather and report relevant information. The dashboards and reports provide information of particular importance not only to stakeholders and regulators but also to investors, who seek transparency and accountability with respect to internal systems and processes. Keeping the risk matrix as a guide, the strategies devised, and reporting standards adopted by the company result in more effective target setting and ESG program success.

ESG Controls and Actions
Once risks are identified and assessed, controls and actions to mitigate or avoid them need to be put in place. Internal controls can be created, assigned and their workflows automated using EnRICO. Progress monitoring as well as dashboards and reports for stakeholders enable the centralisation and co-ordination of these processes to ensure timely and effective compliance.
If at anytime during the process of risk assessment or control execution, issues are identified, they can be effectively and efficiently managed with EnACT. A centralised, detailed overview of issues from all departments and locations enables tracking till resolution. Issues can be rated according to their severity and the actions to remedy them prioritised and assigned through automated workflows. Action owners do not need to be logged into EnGRC to receive alerts or reminders when tasks are due. Follow up reports provide insights into the progress made and facilitate adjustments or escalation where necessary.

ESG Reports
EnGRC reports are a way of representing an enterprises’ non-financial and sustainable annual performance to all stakeholders including the public and investors.
EnRAM & EnRICO reporting involves both qualitative and quantitative data. These reports provide a detailed picture of the enterprises ESG framework including risks and the effectiveness of the controls in place to mitigate or overcome them. EnRAM is also a means of revealing opportunities which could be addressed in order to achieve enterprise goals faster and more effectively.
EnGRC – Effective & Effficient

The emphasis on ESG principles as a basis for sustainable growth is here to stay. The coming years will see a rapid increase of governments striving to enhance regulations and companies undertaking proactive measures to stand out as leaders demonstrating a strong ESG posture. There is also a substantial rise in the tendency of investors to consider ESG factors alongside financial metrics when deciding on their portfolio of assets.
All of these factors point to the necessity of a digital solution to not only comply with regulations but ensure that enterprises achieve the ESG goals they have communicated to their stakeholders in a reportable auditable manner. EnGRC and its modules deliver these capabilities without hindering daily operations. EnGRC is quick to implement, easy to use and delivers smart dashboards and reports, which makes ESG compliance effective and efficient.

Know more. https://www.3i-infotech.com/engrc/