Moving From CSR To Esg: Five Best Practices
Moving From CSR To Esg: Five Best Practices
Moving From CSR To Esg: Five Best Practices
Moving From
CSR to ESG
Traditionally, corporate social responsibility (CSR) has been
about doing good for good’s sake. It has focused on social
accountability and community engagement offering qualitative
evidence of the positive impact a company can have on
the world.
The concept of ESG also has a long history. Quakers in 17th century
England would invest in companies that turned a profit while minimizing
harm to society. However, the term ESG did not come into use until 2005.
2
1 Association of Corporate Citizenship Professionals. (n.d.) Corporate Social Responsibility: A Brief History.
https://accp.org/resources/csr-resources/accp-insights-blog/corporate-social-responsibility-brief-history/
2 Zinn, D. (2021, October 26). Here Is Everything You Need to Know about ESG: A Socially Responsible Way of Invest-
ing. Time. https://time.com/nextadvisor/investing/investing-in-esg/
X Investors
X Regulations
X Industry peers
X NGO/public scrutiny
3 Gartner. (2021, June 10). The ESG Imperative: 7 Factors for Finance Leaders to Consider. https://www.gartner.com/smarterwith-
gartner/the-esg-imperative-7-factors-for-finance-leaders-to-consider
ESG. A 2021 report from Bloomberg estimates global ESG assets will
exceed $53 trillion USD by 2025. 5
Leading companies recognize the risk that complex supply chains pose
when they do not have ESG programs of their own. They cannot afford
the damage to their reputation if their suppliers have poor practices.
Major impacts on a company’s overall health and longevity are no longer
just about fraud; emissions falsification, social welfare, and general
market perception all affect a business’s performance. When a supplier
does not have high ESG performance, a business will be accountable for
those actions, no matter how far down the supply chain it is.
4 Morningstar. (2022, January 31). Sustainable Funds U.S. Landscape Report: 2021: Another Year of Broken Records.
https://www.morningstar.com/lp/sustainable-funds-landscape-report
5 Bloomberg. (2021, February 23). ESG Assets May Hit $53 Trillion by 2025, a Third of Global AUM. https://www.
bloomberg.com/professional/blog/esg-assets-may-hit-53-trillion-by-2025-a-third-of-global-aum
6 Vitello, C. (2020, May 21). Major Increase in Companies Asking Suppliers for Environmental Transparency. Environmental
Journal. https://environmentjournal.ca/major-increase-in-companies-asking-suppliers-for-environmental-transparency/
When NGOs shine a light on sustainability issues, the public pays attention. Research
from PricewaterhouseCoopers in 2021 showed that 80 percent of the public are more
likely to buy from a company that has a strong reputation for environmental protection
and governance, while another 76 percent said they are more likely to buy from a
company with a strong reputation for social issues. 8
Today’s consumers are more informed than ever before about ESG issues and their impact
on the environment and society. Many consumers do not want to be party to environmental
damage or human rights issues. When NGOs reveal evidence of poor ESG performance,
the public takes notice, and in many cases, action.
7 Blood, R. (2019, September 19). How NGOs Are Driving ESG. International Investment. https://www.internationalinvestment.net/opinion/4005142/
ngos-driving-esg
8 Price Waterhouse Cooper. (2021). Beyond Compliance: Consumers and Employees Want Business to Do More on ESG. https://www.pwc.com/us/en/
services/consulting/library/consumer-intelligence-series/consumer-and-employee-esg-expectations.html
X Topics of importance
X Prioritization
Topics of Importance
Which aspects of ESG make sense for your organization? For example, a smartphone
manufacturer would be concerned with, at the very least, child labor in its supply chain
as well as greenhouse gas emissions from its factory.
Prioritization
Once you understand what materials apply to your
ESG program, the next step is to prioritize materials
or issues. There may be several materials or issues
that you need to address to collect ESG data,
although some may be more urgent than others.
ESG programs rely on data. That data comes from direct and indirect suppliers.
Technology allows these suppliers to transmit data electronically, making it fast
and simple to receive the information you need about ESG topics and materials.
Moreover, technology allows you to analyze data quickly and accurately. If you do
not have technology in place for analysis, people will have to perform this labor-
intensive and time-consuming task, which greatly increases human error and puts
the success of your ESG program at risk.
For a start, you need to figure out which stakeholders you will engage. Complex
supply chains could consist of a wide range of suppliers. Furthermore, you must
determine which data you need from your suppliers and how they will transmit it.
During the process of creating an ESG playbook, you will discover that suppliers
will have varying levels of awareness of ESG risks. Some of them may be highly
aware of their impact on the environment and society, and they may be taking
Because of varying ESG awareness among your suppliers, you must set reasonable timelines to
accomplish your goals. If your suppliers do not realize their greenhouse gas emissions present
an obstacle to your ESG program, it will take longer for you to reduce your emissions. Without
engaging suppliers, you will not know what realistic timelines look like.
Re-evaluating your supplier selection criteria also reveals which opportunities exist. Once you
learn what your suppliers’ dependencies are, you can make better-informed purchasing
decisions and support suppliers with stronger ESG track records.
For example, one manufacturing plant might rely on the coal-powered municipal power grid, while
another factory utilizes renewable energy sources. Awarding business to electric fleet vehicles
represents an opportunity to select a supplier with a strong commitment to ESG principles.
After you put your ESG playbook into place, you may discover some suppliers are less mature than
others. Low maturity and non-compliance does not mean you should stop engaging with them.
Instead, you have a chance to educate them about the importance of ESG and their role in it.
Even after implementation, new regulations, market expectations, and the results of supplier
engagement can affect your ESG goals. These goals may need to change in light of that
information, which is why flexibility, adaptability, and the ability to see new sustainability
opportunities are crucial.
X See deeper into your supply chain to reduce your risk and grow your business
X Work smarter to manage data efficiently and cost-effectively
X Grow better to take advantage of new opportunities
With Assent, you gain supply chain transparency into the complexities of your supplier
network. Detailed dashboards show compliance statuses, risk supplier scores, and other
metrics. That makes it easy to respond to requests for data – at the touch of a button, you
can generate reports in internationally-standardized formats and access historical data.
The platform boosts the efficiency of your ESG program, too. Users from across your
company can access all submitted data at any stage of the manufacturing process to
discover risks and opportunities.
Work Smarter
The Assent platform offers a sustainable foundation for your ESG program to build on.
Its core features enable you to acquire and manage data from all of your business units
efficiently and cost-effectively.
During the implementation phase, you will receive dedicated support through every phase
of your ESG journey. Our experienced professional services team provides deeper insight
into your data. Thanks to Assent’s support, you can reduce your reliance on internal teams
as well as your spend, which decreases cost and risk.
Grow Better
The goal of ESG programs is sustainable growth. To grow sustainably, you need to
understand your risks and opportunities, and take action.
If data is invalid, you receive expert support and analysis. Assent’s platform automates
follow ups with suppliers to increase compliance. In addition, you will receive alerts about
regulatory changes before they impact your ESG program. Once you have the data,
you can act.