Ultimate guide

to sustainability
Building a successful ESG program to foster trust

NOVEMBER 2022
Table of Contents

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03

What is sustainability and ESG? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03

What other ideas are shaping the sustainability conversation?. . . . 05

How is the regulatory environment changing?. . . . . . . . . . . . . . . . . . . . . . 07

ESG reporting is essential for building stakeholder trust. . . . . . . . . . . 08

ESG program management: Setting up for success. . . . . . . . . . . . . . . . 12

How OneTrust can help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

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Trust is becoming an essential differentiator. A range of
stakeholders, including investors, governments, customers,
and employees, are demanding more from businesses.
It’s no longer solely about driving profits for the benefit of
shareholders. It’s about pursuing higher goals that positively
impact society and living up to those stated values. Modern
leadership requires being trusted not only with today,
but also with our shared future. To lay the groundwork,
organizations must demonstrate their commitment to the
three pillars of a responsible business: environmental, social,
and governance (ESG).
The global pandemic accelerated the pace of digital
change and created societal shifts that continue to alter
how we work, play, learn, and shop. Constantly connected
Generations Y and Z have grown up, unafraid to speak their
minds, and act for justice. As the most trusted institution,
businesses are now expected to lead the charge in tackling
global issues such as climate change, diversity and inclusion,
racial injustice, and more. Stakeholders demand that
corporate responsibility be integrated, connected, and
transparent throughout the business.
In the face of these shifts, companies that demonstrate their
commitment and progress regularly and transparently are
building stronger foundations of trust. And while the ESG
reporting landscape is still changing rapidly, a convergence
between major frameworks and standards is already
underway. Understanding and being primed to align with
these shifts is essential to any organization aspiring to build
market credibility and trust leadership.
Now is the time to embed ESG into the DNA of your
organization. Doing so will not only foster stakeholder trust,
it will differentiate you from competitors, and position you
better to address new ESG risks and opportunities as they
surface. This guide will equip you with the foundational
know-how you need to understand, navigate, and establish
a successful ESG program to build trust within this rapidly
changing landscape.
What is sustainability and
ESG
People often assume sustainability is limited to
environmental issues, but it is fundamentally interconnected
with economic and societal drivers. For example, the human
activity associated with economic growth has accelerated
climate change, while the climate crisis disproportionately
affects women and other marginalized groups.
The most widely quoted definition of sustainability is in the
1987 Brundtland Commission Report: “development that
meets the needs of the present without compromising the
ability of future generations to meet their own needs.” At
its most basic level, it means meeting all people’s needs
equitably and fairly while operating within the limits of
the world’s resources and ecosystems. This is how we will
preserve sufficient resources for the generations to come.
Emergence of the triple bottom line
In 1994, British management consultant John Elkington
applied this concept to business by adding “people” and
“planet” to the traditional bottom line of “profit.” This triple
bottom line (TBL) was intended to strengthen corporate
alignment to and transparency around the true cost of doing
business. As this idea took hold, stakeholders began more
aggressively advocating for the need for greater corporate
transparency and accountability across the TBL. Business
leaders started paying attention.
Rise of stakeholder capitalism
In 2020, at the annual meeting of the World Economic Forum
(WEF), 120 of the world’s largest companies came together
to support the development of a common set of ESG
disclosure standards and metrics for their stakeholders.
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These “Stakeholder Capitalism Metrics” stood in stark
contrast to the traditional tenets of shareholder capitalism,
in which companies operate to increase profits and return
the highest possible dividends to shareholders.
Companies must also take into consideration how ESG-
related risks can impact value creation. For example,
environmental concerns such as climate change,
deforestation, and water security and availability, can limit
the ability to conduct business as usual.

The Environmental pillar focuses on how a company

“Stakeholder capitalism safeguards the environment, e.g., how its policies address
climate change and carbon emissions, pollution and waste,

is “a form of capitalism in deforestation, energy effi ciency, and electronic waste. It

also considers how environmental risks and opportunities

which companies do not are addressed.

only optimize short-term Example environmental metrics:

- Carbon Emissions
profits for shareholders, - Reliance on Fossil Fuels

but seek long term value - Water Management

creation, by taking into - Waste

account the needs of all

- Energy Efficiency

- Climate Risk

their stakeholders, and - Recyling Processes

society at large.” - Land Use

The Social pillar focuses on how a company manages

WEF relationships with its employees, suppliers, customers, and
the communities where it operates. Social also addresses
corporate policies surrounding human rights, health
ESG as the foundation of responsible and safety, data protection and privacy, and gender and

business diversity. It considers how social risks and opportunities are

addressed.
Over time, the definition of sustainability evolved to include
three main pillars: Environmental, Social, and Governance Example social metrics:

(ESG), which today are considered the foundation of a -H

 ealth & Safety
sustainable business. These are the metrics organizations
typically report on to their stakeholders. - Working Conditions

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-E
 mployee Relations being used by a wide range of stakeholders and regulatory
authorities across the globe. Executive teams and boards
-D
 iversity & Inclusion
across every industry are recognizing that people want to
-S
 upply Chain Transparency invest in, work with, and be employed by brands that treat
sustainability as a key part of their overall business strategy.
-H
 uman Rights And they are making ESG a top leadership agenda item

-C
 ommunity Relations because of it.

-P
 roduct Safety
The Governance pillar focuses on a company’s leadership,
executive pay, audit committee structure, board diversity,
tax transparency, corruption and instability, lobbying and
shareholder rights. It considers how internal controls for
decision-making and business operations are structured.
A recent IBM survey of 3,000 CEOs worldwide found that
sustainability is now one of the top five important issues
for CEOs, compared to being in last place in 2015. It’s no
longer enough to focus inwardly on revenue and costs alone,
and smart business leaders know that. In fact, eight out of
ten CEOs said sustainability investments will drive better
business results in the next fi ve years.

Example governance metrics:

-E
 thical Standards What other ideas are
-B
 oard Diversity & Governance
shaping sustainability
-E
 xecutive Pay

- Tax Transparency
-S
 hareholder Rights
-B
 ribery & Corruption
Broadening stakeholder impact
These foundational ESG topics, or metrics, are very
important to investors as they represent inherent risk and
opportunity for long-term value creation. Several studies
have pointed to a tangible link between ESG and financial
performance, with 81% of sustainable indices outperforming
their peer benchmarks. Investors consider ESG factors –
and their associated metrics and benchmarks – to be non-
financial performance indicators for future valuation.
Originally a way for investors to better screen their
investments for ethical and sustainable companies (and
the associated higher performance), the ESG model is now
conversation?
As ESG has become a more meaningful part of how
companies assess, track, and report their progress, a
host of related ideas can shape sustainability-focused
conversations. Understanding the following defi nitions will
help your organization successfully understand and navigate
the nuances.
Corporate sustainability vs. Corporate
social responsibility
Corporate sustainability is focused on value. It refers
to how a company incorporates material ESG risks and
opportunities into its business strategy for VALUE creation.
The primary audiences for corporate sustainability tend
to be investors, regulators, lenders, insurers, customers,
partners, and rating providers.

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Corporate social responsibility (CSR), sometimes referred Linear vs. Circular economy
to as corporate citizenship, is focused on is focused on
demonstrating our VALUES through positive impact. It refers Our current “take, make, waste” system is sometimes

to programs or actions that a company takes to advance and referred to as a linear economy. By contrast, a circular

integrate positive environmental and social impact into their economy is a regenerative production and consumption

business and in interactions with stakeholders. The primary system with the aim of extending product life cycles to

audiences for CSR tend to be customers, employees, and minimize use of the world’s resources, reduce waste, and

communities, and it is frequently linked to philanthropy and decrease carbon emissions. This is achieved through

workplace volunteering. sustainable design, production, recycling, reusing, and

refurbishing so materials can be used again and again. The
Sustainable investing vs. Impact investing circular economy is viewed as a key enabler for achieving
global net-zero emissions, making it a high priority on the
Like the concept of corporate sustainability, sustainable
policy agenda of governments and organizations worldwide.
investing refers to a long-term investment strategy that
considers the environmental and social implications of
investments in addition to economic impact and financial
return. It is sometimes synonymous with responsible
investing or socially responsible investing (SRI).

Impact investing is more akin to CSR – it refers to an

investment strategy that is focused on creating positive
environmental and social impact, as well as positive financial
returns.

Sustainable supply chains VS. Third-party

risk management
Sustainable supply chain refers to the integration of
sustainable and ethical practices across the value chain to
build a more responsible supply chain and reduce risk. This
includes setting and tracking ESG targets and performance
as part of supplier due diligence.
Sustainable development and the
Third-party risk management (TPRM) is a form of risk
management that focuses on identifying and mitigating sustainable development goals
risks related to the use of third parties such as vendors and Like the Brundtland definition above, sustainable
partners. TPRM is designed to help organizations be more development refers to a business or economy’s ability to
resilient by giving them an understanding of the third parties mature and increase its capabilities without compromising
they use, how they use them, and what safeguards are in the sustainability of the world’s resources for today and
place. tomorrow.

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Adopted in 2015 as part of the 2030 Agenda for Sustainable
Development, the 17 United Nations Sustainable
Development Goals (UN SDGS) are an urgent global call to
action to end extreme poverty, promote individual wellbeing,
and protect the planet. The SDGs provide a great lens for
companies to share how they are addressing and positively
contributing to these global issues with their stakeholders.
The UN Global Compact is a voluntary initiative and
principles-based framework that aims to help businesses
implement principles and actions to support the SDGs. To
that end, it provides a guide to help companies integrate the
SDGs into their reporting.
How is the regulatory
environment changing?
Regulatory bodies around the world are introducing new
ESG mandates to protect human rights and the environment
that are impacting how companies define, track and report
on ESG issues. Examples include regulations for anti-
slavery, supply chain transparency, due diligence and ESG
disclosure requirements, data privacy, minimum wage,
workplace health and safety, and whistleblower protections.
The EU, which is further along than other regions, has led the
development of several pivotal regulations and disclosure
guidance including GDPR, Directive on Corporate
Sustainability Due Diligence, EU Taxonomy, CSRD and
SFDR. A representative list of existing and pending
regulations and guidance that are relevant to each ESG
pillar follows.
Environmental
-E
 SG disclosures are required in the US, UK, and Canada.
The CSRD (EU) requires disclosures across all three ESG
pillars.
- The proposed SEC Climate Disclosure Rules (US) for
companies and fund managers are based on broadly
accepted disclosure frameworks and accounting
methodologies, such as the Task Force on Climate-Related
Financial Disclosures (TCFD) and the Greenhouse Gas
Protocol. The intention of these proposed rules is to
enhance and standardize climate-related disclosures to
address investor needs.
- The Inflation Reduction Act (US) introduces several new
environmental taxes, incentives, and penalties, including
a minimum 15% corporate tax to help pay for climate
measures. The latter applies to companies generating at
least $1 billion in earnings annually.
-C
 ompanies (Directors’ Report) and Limited Liability
Partnerships (Energy and Carbon Report) Regulations
2018 (UK) states that, from April 1, 2019, all large
companies are required to include within their director’s
report information on GHG emissions, energy usage, an
intensity matrix, and energy effi ciency improvements
for any financial year that begins on or after this date.
These regulations update existing reporting requirements
for listed companies and introduce new reporting
requirements for large companies and limited liability
partnerships.
Social
-D
 ue diligence and supply chain disclosure requirements
are required in the EU and Germany to make large
companies more accountable for environmental and
human rights harm across their supply chain.
- Modern slavery disclosures are required in the US (CA),
UK, and Australia. In the UK, the Modern Slavery Act 2015
is designed to combat modern slavery and consolidates
previous off enses relating to traffi cking and slavery.
- The Dodd-Frank Consumer Protection Act (US) was
designed to protect consumers from abusive financial
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practices and safeguard capital markets by improving
accountability and transparency in the financial system.
- The proposed Declaration on Digital Rights and Principles
(EU) addresses individual digital rights including data
privacy, safety, security, education, inclusion, etc.
- The US Senate Committee on Financial Services is
considering legislation on diversity data disclosures that
would require companies to disclose the racial, ethnic, and
gender makeup of their employees and what measures
they are taking to improve diversity, equity, and inclusion.
- The EU Whistleblower Protection Directive specifies
that employees, former employees, subcontractors,
shareholders, suppliers, and other third parties will be
protected from dismissal, suspension, demotion, and
other forms of whistleblower retaliation, in response to
submitting a whistleblower report. Additionally, those
who support a whistleblower are also protected from
experiencing retaliation.
- Privacy and data protection laws are in place in many
countries, including the US (Federal and State), UK, EU,
Japan, Brazil, and Thailand.
Governance
-B
 oard diversity disclosures are required in the US
(NASDAQ) and eight EU countries. The EU has also
agreed on a draft bill that would require at least 40% of
non-executive director posts or 33% of all director posts
be occupied by the under-represented gender by June 30,
2026.
-C
 EO pay ratio and pay equity disclosures are required
in the US and UK. The EU is also likely to implement pay
transparency legislation within the next few years.
ESG reporting is essential
for building stakeholder
trust
Establishing a strong ESG program can improve your
brand image, reduce risk, positively impact revenue and
company valuation, and enhance overall market perception.
But leveraging your sustainability program to nurture trust
requires regular and transparent ESG reporting to a broad
range of stakeholders including customers, employees,
suppliers, industry partners, government entities, and
others.
Proactively disclosing your ESG risks, opportunities,
commitments, and progress shows important stakeholders
that you are on the right track. By contrast, companies that
choose not to publicly report on their ESG programs may
struggle to gain stakeholder trust, and face challenges such
as increased costs, declining productivity, and loss of market
share.
Being clear, transparent, and authentic in your
communication is also key. Stakeholders want to see
accountability and measurable improvement, not perfection.
Companies that fail to do this and only provide vague, high-
level claims may be accused of greenwashing.
Who are ESG stakeholders and what
metrics matter to them?
ESG stakeholders can include anyone with a direct or
indirect interest in a business and its impact on people and
the planet. With that said, the stakeholder groups below
exert a particularly strong influence on how organizations
implement and report on ESG programs.
Gaining a deeper understanding of what these critical
audiences care about helps you report on ESG metrics in
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the ways that are most relevant and meaningful to each
unique group.
- I nvestors use ESG criteria and ratings to target investment
into ethical and sustainable assets. Interest in ESG
investing has soared in recent years. According to
estimates from Bloomberg Intelligence, it could reach $50
trillion by 2025. And per Morgan Stanley, 70% of investors
believe that their decisions can have an impact in fighting
climate change. When considering investor interests,
your main task is to identify ESG risks and opportunities
that may positively or negatively impact your company’s
valuation and financial performance.
-C
 ustomers prefer to purchase from brands that share
their values. 74% believe that ethical corporate practices
and values are an important reason to choose a brand, and
66% plan to make more sustainable or ethical purchases
over the next six months. 67% of consumers also support
carbon-labeling on products.
- Employees want to work for ethical and sustainable
enterprises where gender, pay and racial equality are top
priorities. Increasingly, the commitment and action taken
on ESG initiatives by a corporation drive its attractiveness
as both a brand and a potential future employer. Employees
who strongly agree their organization makes a positive
impact on people and the planet are also 3.1x more likely
to be extremely satisfied with their organization as a
place to work. And, nearly 8 in 10 of 3,500 employees who
responded to a Harvard Business Review survey indicate
sustainability is important to them.
-B
 usiness Partners use vendor ESG ratings/scores to find
ethical and sustainable partners and suppliers. Requesting
information about the sustainability practices of a business
is becoming a standard ask in RFPs and an important
factor in vendor selection.
-N
 onprofits and NGOs are at the forefront of driving
ESG regulations, standards, and reporting frameworks.
Examples include IFRS, CDP, SASB, GRI, and more.
-G
 overnments around the world are introducing new due
diligence and ESG disclosure requirements as noted in the
previous section.
-L
 ocal Communities are often the beneficiaries of corporate
philanthropy because businesses directly impact the
communities in which they operate. In 2021, nearly 6 in 10
companies reported an increase in community investments
over the past three years. Employees are also demanding it:
70% of employees expect opportunities for social impact,
and 72% of job seekers are more willing to apply for a job at
an organization they consider to be socially responsible.
-R
 aters/Scorers such as Sustainalytics, MSCI, ISS, etc.
are independent monitors who assign companies,
especially public ones, with sustainability scores. Industry
organizations who spotlight purpose-driven companies in
recognition categories such as “Most Sustainable…,” “Most
Ethical…,” etc. rely on these independent raters to identify
sustainability leaders and laggards. A low rating may not
indicate improper practices, but a lack of data or data-
transparency. By prioritizing ESG and sharing your findings,
you can improve these important scores.
Key ESG reporting frameworks and
standards
A variety of ESG reporting frameworks and standards have
evolved to meet the needs of different stakeholders and
industries. While many of them are not (yet) mandatory,
they represent best practices that can help organizations
meet stakeholder requirements and comply with emerging
regulations around the world. Determining which ESG
issues are important to your business and stakeholders
(material topics) is an important first step. The ESG Program
Checklist can help you get started.
ESG reporting is categorized as non-financial reporting
because, while ESG issues can impact financial valuation
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or performance, they do not have corresponding financial
figures. ESG disclosure standards typically require
companies to submit an assessment of their business model,
policies, and key performance indicators that determine
how they operate and manage social and environmental
risks and opportunities. In this section, we cover examples of
target setting guidance, as well as reporting frameworks and
standards available to companies.
Target setting
Organizations seeking to develop an ESG reporting strategy
often turn to existing reporting frameworks or standards to
guide them in crafting an ESG reporting process that meets
their specific corporate financial and social responsibility
goals.
SBTi – The Science Based Targets initiative (SBTi) is a
global coalition promoting science-based targets (SBTs)
to strengthen business participation in the shift to a carbon
neutral economy. SBTs are goals that organizations set to
reduce their greenhouse gas (GHG) emissions in line with
the 2015 Paris Agreement to mitigate the worst effects of
climate change.
The Paris Agreement provides a framework for limiting
global warming to no more than 2°C while striving to limit it
to 1.5°C. More than 3,000 organizations, representing $38
trillion in the global economy, have committed to SBTs.
UN SDGs - The 17 SDGs provide a great lens for companies
to share how they are addressing and contributing positively
to global societal and environmental issues. While it is
voluntary, more than 17,500 companies based in 160+
countries are already active participants in the UN Global
Compact. Moreover, aligning with the SDGs can also
positively impact the bottom line. According to research
by S&P Global, 49% of revenues of the 1,200 largest global
companies come from business activities that support the
SDGs.
ISO standards are international standards representing the
agreed-to best practices for various business processes.
ISO standards commonly referenced for ESG program
management and reporting include environmental
management (ISO-14001), energy management (ISO-
50001), social responsibility (ISO-26000), health and safety
(ISO-45001), quality management (ISO-9001), IT security
(ISO/EIC-27001), risk management (ISO-31000), and anti-
bribery management (ISO-37001).

SBTi target setting process

1. Commit 2. Develop 3. Submit 4. Communicate 5. Disclose

Submit a letter Work on an Present your target Announce your target Report company-wide
establishing your emissions’ reduction to the SBTi for official and inform your emissions and progress
intent to set a science target in line with the validation stakeholders against targets on an
based target SBTi’s criteria annual basis

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Reporting frameworks and standards
IFRS global sustainability reporting standards - The
International Financial Reporting Standards (IFRS)
replaced the International Accounting Standards (IAS) in
2001. Its purpose is to provide accounting rules that public
companies can use to ensure their financial statements are
consistent, transparent, and comparable globally. Although
the US and China do not currently use IFRS, it is used by
more countries than any other accounting standard. In
2021, the IFRS Foundation established the ISSB to develop
a global baseline of sustainability disclosure standards to
give companies a consistent set of rules for reporting ESG
information. This will make it easier for investors to compare
apples to apples when assessing enterprise value.
The proposed EU sustainability reporting standards
(ESRS), if adopted as part of EU’s Corporate Sustainability
Reporting Directive (CSRD), outline detailed reporting
requirements across 13 ESG issues as well as audited
assurance on the information disclosed.
SASB - Founded in 2011, the Sustainability Accounting
Standards Board (SASB) standards are designed to help
companies disclose financially material sustainability
information to their investors. They identify and enable
reporting on ESG issues most relevant to financial
performance in 77 industries. Originally developed by the
Value Reporting Foundation (VRF), a global nonprofit, the
VRF has since consolidated with the IFRS.
The Global Reporting Initiative (GRI) is an independent,
international standard setting institution and collaborating
center of the United Nations Environment Program (UNEP).
Used globally by many companies (>10k) to disclose
ESG performance, GRI standards provide a comparable,
interconnected system that organizations can use for their
impact reporting and/or decision-making.
CDP - Formerly the Carbon Disclosure Project, CDP is an
investor-led nonprofit focused on motivating companies,
cities, states, and regions to measure and disclose their
environmental impacts and take action to reduce them. It
runs a global disclosure system, known as the CDP Online
Response System (ORS) that organizations use to report
sustainability information requested by their stakeholders.
The Task Force on Climate-related Financial Disclosures
(TCFD) is focused on improving corporate transparency
around climate risk to help investors make better
decisions. Currently ten countries, including the US, EU,
UK and Canada, have announced TCFD-aligned reporting
requirements.
WEF Stakeholder Capitalism Metrics - The World Economic
Forum’s Stakeholder Capitalism Metrics (SCM) are a
common set of ESG disclosure standards and metrics for
stakeholders developed in 2020 by a collaboration of 120
of the world’s largest companies at an annual meeting of
the WEF. They are drawn wherever possible from existing
standards and disclosures, with the aim of amplifying the
rigorous work already done by standard-setters rather than
reinventing the wheel.
Common ESG metrics mapped to the
SDGs
Once the reporting standard is selected and ESG data is
collected, it’s not typically a huge lift to report to multiple
ESG reporting frameworks. To make it easier, the following
infographic illustrates common ESG disclosure metrics, or
impact areas, across each ESG pillar, along with how each
pillar maps to the SDGs.
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ESG program management:
Setting up for success
How does sustainability benefit business
leaders?
Earlier we explored how diff erent stakeholder groups view
sustainability. Diving a bit deeper by business role helps
ensure your program and priorities will resonate with the
corporate decision makers who are in the best position to
invest in and advance ESG initiatives.
The reality is that a strong ESG strategy helps executive
leaders solve signifi cant business challenges. The following
list highlights some executive pain points that the right
sustainability strategy can improve, or remove:
Risk/Compliance - "I want to minimize ESG risks and ensure
regulatory compliance."
Procurement - "I want to minimize third party ESG risks and
build a responsible supply chain."
ESG - "I want to establish and manage a successful ESG
program."
HR - "I want to leverage ESG benefits for our brand as an
employer and corporate citizen."
CMO/Sales - "I want to capitalize on our ESG advantages
to build brand reputation, drive demand, and grow market
share."
CEO - "I want to maximize ESG advantages for our business."
CFO - "I want to address ESG impacts on our valuation and
financial performance."
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CEO
A CEO needs to identify, communicate, and manage the
risks and opportunities that could impact overall brand
image, valuation, or financial performance of the company.
Focus: Maximizing ESG advantages for our business.
Pain points: Declining innovation and market share,
increasing risks and costs, high turnover
Audiences: Board, investors, customers, partners,
employees
Needs/Questions:
- What is the ROI of our ESG efforts so I can report to key
audiences?
-H
 ow can our ESG program help improve our business
results, competitive advantage, and brand reputation?
-H
 ow can our ESG program help reduce risks and costs?
- I want to benchmark our ESG score/rating against others in
our industry to identify gaps and opportunities to improve.
Alternate titles: Founder, President, Executive Director
(nonprofits)
CFO/Investor relations
A CFO is concerned with identifying, communicating, and
managing risks and opportunities that could impact overall
valuation or financial performance of the company.
Focus: Addressing ESG impacts on valuation and financial
performance.
Pain points: Declining valuation and revenues, increasing
costs, slower growth without ESG focus, challenges gaining
new financing, higher cost of capital, ESG disclosure
requirements from investors and regulators
Primary audiences: CEO, board, investors, regulators
Secondary audiences: Customers, partners, employees
Needs/Questions:
-H
 ow can our ESG program improve our valuation and
financial performance?
- What are the key ESG disclosure regulations, accounting
methodologies, and reporting frameworks we need to align
with in our financial reporting?
- What is the ROI of our ESG efforts so I can report to key
audiences?
- What are the ESG risks that may negatively impact our
valuation or revenues? How can we mitigate these risks
and reduce costs?
- I want to measure our ESG score/rating to see the impact
on our financial performance, reduce risk, and identify gaps
and opportunities to improve.
- I need portfolio-level visibility into ESG metrics to make
strategic investment decisions and/or to better manage
our finances for investor value.
- Alternate titles: Treasurer, Chief Accountant, Chief
Investment Officer, Chief Business Officer, Chief Credit
Officer, Chief Budget Officer
CMO/Sales
A Chief Marketing Officer (CMO) needs to drive leads
through marketing programs, platforms, and channels.
CMOs may be responsible for public relations (PR), brand,
communications, content, digital marketing, product
marketing, and more. A Chief Sales Officer is responsible
for developing new business and meeting sales/revenue
targets.
Focus: Capitalizing on our ESG advantages to build brand
reputation, drive demand, and grow market share.
Pain points: Negative brand reputation without ESG focus,
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reputational damage, competitive disadvantage, declining employer and as a corporate citizen.

market share, pressure from customers to align with ESG
Pain points: Low employee engagement, high turnover,
criteria, weakening customer loyalty.
increasing hiring costs, and negative employer brand
Primary audiences: CEO, marketing/sales, employees reputation without ESG focus. ESG disclosure requirements
on S pillar from investors and regulators. Pressure from
Secondary audiences: Customers, partners, board,
marketing/sales, customers, partners, and employees to
investors, regulators
align with ESG criteria.
Needs/Questions:
Primary audiences: CEO, marketing/sales, employees
-H
 ow can our ESG efforts help improve our brand
Secondary audiences: Customers, partners, board,
reputation?
investors, regulators
- What ESG advantages can we promote in our marketing
Needs/Questions:
and sales outreach?
- How can our ESG program help improve our brand and
- What are the ESG risks that may negatively impact our
employee experience?
brand or market share? How can we mitigate these risks?
- What are the key ESG disclosure regulations and
- I want to measure our ESG score/rating and benchmark
reporting frameworks we need to align with for social
against others in our industry to see the impact on our
responsibilities?
brand and identify gaps/opportunities to improve.
- How can our ESG efforts help mitigate our employee and
- I need to respond to customer RFPs that have specific
social risks?
ESG requirements we need to align with.
- I want to benchmark our ESG score/rating against others in
Alternate titles: Chief Brand Officer, Chief Reputation
our industry to identify gaps and opportunities to improve.
Officer, Chief Communications Officer, Chief Content
Officer, Editor in Chief, Chief Web Officer, Chief Business Alternate titles: Chief People Officer, Executive Vice
Development Officer, Chief Revenue Officer, Chief President of Human Resources, Chief Talent Officer, Chief
Commercial Officer, Chief Growth Officer, Chief Visibility Diversity Officer, Chief Inclusion Officer, Chief Culture
Officer (retail) Officer, Chief People & Culture Officer, Chief Employee
Experience Officer, Chief Happiness Officer, Chief Trust
HR/Diversity/Culture/Citizenship Officer, Chief Impact Officer, Chief Social Impact Officer,
A Chief Human Resources Officer (CHRO) is responsible for Chief Purpose Officer, Chief Corporate Social Responsibility
all human resources functions in the employee experience Officer, Chief Social Responsibility Officer, Chief Corporate
including employer branding, talent acquisition, and Citizenship Officer
retention. This may include some additional aspects of
Head of sustainability/ESG
the ‘S’ in ESG if it’s not a separate role such as Diversity &
Inclusion, Community Relations, or Culture and Purpose. A Chief Sustainability Officer needs to work with functional
stakeholders to identify, report on, and track material ESG
Focus: Leveraging ESG benefits for our brand as an

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risks and opportunities for the company. This includes
collecting the pertinent ESG data and determining
clear, actionable steps for goal setting, reporting, and
progress tracking. Understanding and applying key ESG
accounting and reporting methodologies is also an essential
responsibility.
Focus: Establishing and managing a successful ESG
program.
Pain points: Challenges integrating ESG objectives and
metrics across multiple functional groups, complexity
in gathering data, no single globally recognized set
of metrics to benchmark ESG progress against, ESG
disclosure requirements from investors and regulators,
time-consuming to manually report against multiple
ESG frameworks, need help with carbon accounting and
reduction, inability to track disclosures and goal tracking
over time
Primary audiences: CEO and all internal C-Suite
Secondary audiences: Customers, investors, regulators,
partners, employees
Needs/Questions:
-H
 ow can I prove the business case/ROI for our ESG
initiatives to senior leadership?
- I need to identify the material ESG risks and opportunities
for our company.
- What are the key ESG disclosure regulations, accounting
methodologies, and reporting frameworks we need to align
with?
- I need help getting started, calculating ESG metrics, or
developing improvement plans.
- I want to reduce the time and effort associated with
gathering ESG data and metrics from multiple teams
across the organization.
-H
 ow can I streamline and automate ESG reporting and
progress tracking?
- What’s the best way to drive progress and show results?
- I want to benchmark our ESG score/rating against others in
our industry to identify gaps and opportunities to improve.
Alternate titles: Chief Climate Officer, Head of ESG
Reporting, Head of ESG, Chief ESG Officer, Chief Green
Officer, Chief Environmental Officer, Chief Environmental
Commitment Officer, Chief Carbon Officer, Head of
Sustainable Operations, Head of Responsible Business
COO/Procurement
A Chief Operating Officer (COO) needs to understand
and address any risks or issues that could impact day-to-
day operations (upstream or downstream). Procurement
teams have a major role to play in identifying and managing
any upstream ESG risks related to third-party partners,
suppliers, and vendors that could impact the organization.
Focus: Minimizing third party ESG risks. Building a
responsible supply chain.
Pain points: Supply chain resiliency to ESG risks, challenges
with vetting third parties for ESG risks and opportunities
that could impact our operations, negative attention from
partnering with third parties that have high ESG risks,
negotiation challenges, ESG supply chain disclosure
requirements
Primary audiences: CEO, CFO, Board, partners, regulators
Secondary audiences: Customers, employees, investors
Needs/Questions:
- I need to vet our third-party suppliers and partners for key
ESG criteria to minimize risk and ensure they are aligned
with our requirements.
-H
 ow can I identify and manage the third party ESG risks
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and opportunities that could impact our operations?
- What are the key supply chain ESG disclosure regulations,
accounting methodologies, and reporting frameworks we
need to align with?
- I need portfolio-level visibility into ESG metrics of our
suppliers to make strategic partnering decisions.
Alternate titles: Head of Operations, Chief Supply Chain
Officer, Chief Supply Chain Management Officer, Chief
Partner Officer, Chief Partnerships Officer, Chief Sourcing
Officer
Risk/Compliance/Legal
Risk/Compliance/Legal Officers must identify and manage
any risks that could impact the business, as well as ensure
compliance with all relevant regulations.
Focus: Minimizing ESG risks and ensuring regulatory
compliance.
Pain points: Business resiliency to ESG risks, proliferating
ESG regulations and reporting requirements, heightened
supply chain/political/ reputational/operational risk,
regulatory and civil hazards, lack of control and oversight
Primary audiences: CEO, CFO, COO, Head of ESG, Board,
regulators
Secondary audiences: Customers, employees, partners,
investors
Needs/Questions:
-H
 ow can I identify and mitigate ESG risks that could impact
our business?
-H
 ow can our ESG program help reduce risks and
exposure?
- What are the key ESG regulations, accounting
methodologies, and reporting frameworks we need to align
with?
- How can I include ESG metrics into our risk assessment
and management process?
- I want to measure our ESG score/rating to reduce risk and
identify gaps and opportunities to improve.
- I need portfolio-level visibility into ESG risks across our
value chain to make strategic business resiliency decisions.
Alternate titles: Chief Risk Officer, Principal Risk Officer,
Chief Compliance Officer, Chief Risk and Compliance
Officer, Chief Risk Management Officer, Head of
Operational Risk, General Counsel, Chief Legal Officer,
Chief Security Officer, Chief Ethics and Compliance
Officer, Chief Governance Officer, Chief Corporate
Governance Officer, Head of Corporate Governance, Head
of Compliance and Regulatory Affairs, Head of Compliance
and MLRO (EU), Chief Resilience Officer, Chief Resiliency
Officer, Chief Privacy Officer, Head of Internal Controls,
Chief Underwriting Officer (financial services), Head of
Information Security, Information Security Officer, Head
of Non- Financial Risk, Head of Remediation, Chief Trust
Officer
How to build the business case for ESG
Once you better understand the challenges leaders are
facing, you’ll be ready to make your case for how a smart
sustainability strategy can help. Be sure to emphasize not
only the many ways in which the environment and society
benefi ts, but also the signifi cant advantages the company
gains.
These benefits include:
1. Improved employer attractiveness and employee
engagement
When it comes to choosing an employer, a company’s
sustainability agenda is now a critical selection criterion –
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92% of people would consider changing jobs if offered a role
with a company that has an excellent corporate reputation.
Moreover, corporate sustainability can strengthen employee
engagement, which, in turn, can lead to higher productivity,
increased innovation, lower attrition, and reduced hiring
costs. One survey found that a strong employer brand can
reduce the cost per hire by as much as 50%.
2. Decreased costs
A strong ESG program can contribute to decreased
expenses across the board. Examples include lower costs
in operations (energy, water, materials, waste, maintenance,
insurance), HR (productivity, hiring), regulatory compliance,
access to capital, etc.
3. Increased investor attractiveness
Investors are interested in companies that incorporate
sustainability in their business strategies and work for a
clear purpose – 73% say to win their support, companies
must show how they are supporting communities and the
environment.
4. Easier partner relationships
Businesses are increasingly using vendor ESG ratings/
scores to find ethical and sustainable partners and
suppliers. As a case in point, over 200 major companies
representing US $5.5 trillion in procurement spend,
requested ESG disclosures from 23,487 suppliers in 2021.
5. Greater regulatory agility
Between 2016 and 2020, the number of ESG reporting
provisions issued by governmental bodies increased by 74%.
Today there are more than 1,200 reporting requirements
worldwide, of which nearly 80% are mandatory. Anticipating
new regulations allows you to adapt ahead of time.
6. Stronger brand reputation, trust, and credibility
Every company is embarking on a transformation – from
siloed compliance initiatives to trust intelligence – and
ESG sustainability is a core part of that. Many brands that
implemented sustainability at the core of their business
model in the past now enjoy an exemplary reputation that
grants them enduring customer trust and loyalty. Even more
telling, trusted companies outperform the S&P 500 by 30 to
50 percent. Building businesses based on trust, rather than
simply compliance, positions you to be a leader across ESG,
privacy, risk, and ethics to drive growth and create impact.
7. Deeper customer loyalty
Now more than ever, customers expect products
and services to be sustainable and not harmful to the
environment or society. Businesses that do not meet their
expectations lose opportunity and leave themselves at a
competitive disadvantage. The following resources can
help you get started with building and communicating the
business case for your ESG sustainability initiatives:
The UN Value Drivers Model and Toolkit can help you
evaluate and communicate the financial impact of your
sustainability strategy.
The NYU Return on Sustainability Investment (RoSITM)
Model can help you build a better business case for current
and planned sustainability initiatives.
Sustainability Advantage provides company-level and
project-level ROI worksheets to help you build a CFO-
friendly business case for your sustainability initiatives.
These toolkits can help you establish a successful ESG
program that will serve as a central source of organizational
growth, differentiation, and improvement for years to come.
5 easy steps to jump start your ESG
program
Having a strong ESG program can reduce risk and expand
opportunities, directly impacting company performance and
valuation. As you begin your ESG journey, set yourself up for
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success by identifying the right stakeholders and evaluating
the high impact factors in your industry as well as those of
your specific organization. Remember that these will be
both internal and external, spanning your upstream and
downstream supply chain. For practical guidance on how to
get started, download the ESG Program Checklist.
1. Define
Clarify the purpose, roles, and goals for your ESG program.
These may be dynamic and subject to review and updating
as circumstances dictate.
2. Prepare
Set up your ESG program and governance structure. Create
your stakeholder map and gather preliminary data. Decide
which reporting frameworks and standards you will use.
3. Assess and measure
Define materiality by stakeholder. Select and prioritize the
ESG issues most relevant to your industry and stakeholders.
Consider double materiality (outside-in and inside-out) to
determine material ESG metrics and topics. Collect the data
needed to build your ESG report from surveys, application
integrations, and data loads. Determine key ESG risks and
opportunities.
Outside-in: Financial materiality is the impacts that ESG
issues could have on enterprise value creation.
Inside-out: Impact materiality is the ESG impacts a company
has on people and planet.
4. Act
Set improvement targets and make the business case
for your improvement action plans. Implement your
improvement plans and track progress over time.
5. Communicate
Show your stakeholders that you value transparency by
publishing your results. Be open, clear, and transparent in
your ESG reporting to build trust. Avoid vague, exaggerated
claims and demonstrate your commitment to improvement,
even if you miss your targets.
How OneTrust can help
As the market-defining leader for trust intelligence, OneTrust
believes what’s good for society is good for business. More
than ever, consumers, employees, and investors are making
their decisions based on trust. They want to buy from, work
for, and invest in businesses that share their values and
demonstrate positive impact on people and the planet.
The OneTrust ESG & Sustainability Cloud makes it easier
to answer this call with clear target setting, automated
reporting, and transparent benchmarking. Set your
ESG program up for success and instill trust with your
stakeholders by defining your core sustainability metrics,
tracking progress toward those goals, and transparently
sharing your results.
Our cloud-based, fully integrated platform helps you
demonstrate impact and drive change through features
including:
-S
 treamlined, centralized ESG data collection
- Automated ESG reporting that saves you time
- A global database of ESG frameworks that keeps you up to
date
-C
 entralized target setting, benchmarking and gap analysis
that accelerates your goals
-R
 eal-time action-oriented insights that equip you to adapt
and respond fast
-C
 arbon accounting capabilities to help you calculate, track,
reduce and off set your carbon footprint
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WHITE PAPER

-P
 roven templates and workflows that make it easier to
collaborate on ESG priorities across your enterprise,
portfolio, and supplier base

The ESG Cloud is also part of the Trust Intelligence

Platform™ from OneTrust that unifies and delivers
visibility across four trust domain areas (ESG, GRI, ethics,
and privacy). Empower your organization to collaborate
seamlessly and unlock value by doing what’s good for people
and the planet.

ULTIMATE GUIDE TO SUSTAINABILITY | 19

As society redefines risk and opportunity, OneTrust empowers tomorrow’s leaders to succeed through
trust and impact with the Trust Intelligence Platform. The market-defining Trust Intelligence Platform
from OneTrust connects privacy, GRC, ethics, and ESG teams, data, and processes, so all companies
can collaborate seamlessly and put trust at the center of their operations and culture by unlocking their
value and potential to thrive by doing what’s good for people and the planet.
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