Before the global pandemic swept through and halted operations of businesses the world over, we were all dealing with a different kind of pandemic. However, global warming as a result of the ozone layer depletion if unchecked, will wreak havoc on a larger scale. Which is why the SEC is looking into potential new rules for ESG compliance.
According to a recent statistic, we have generated more than 1 billion tons of waste so far this year. If current trends continue to fester in CO2 emission, we may also generate 43.08 billion metric tons in 2050.
Year after year, we have become aware of the potential dangers of improper waste disposal and climate change. As a result, the environmental, Social, and Governance (ESG) requirements of a company are now a consideration by juicy investors before putting their money in any venture.
Our previous article discussed how being ESG compliant gives you a competitive edge in the commercial landscape.
Noticeably, the Securities and Exchange Commission (SEC) has taken a keen interest in ESG regarding workplace concerns and climate change. This is coming after Investor groups have asked the SEC to foster corporate disclosures on companies’ stances on ESG issues and climate change.
The SEC, in recent times, had urged the public to submit comments and concerns on ESG. The commission has since responded to climate and ESG risks and opportunities published on their official website.
The SEC is already looking at the possibility of proposing new rules on ESG disclosures in October this year. This move is would mark a significant change in corporate organizations and their responsibilities.
How Should You Prepare For Such Change?
As a business owner, it is essential that you implement ESG criteria for your business. For example, your potential investors may like to see the following implemented in your business:
Have a Corporate Social and Environmental Responsibility
Another way your business can prepare for the SEC proposed rules for ESG compliance and disclosure is to be more sustainability-driven.
According to a study, 64% of Millennials will not work for businesses with poor corporate social responsibility. Also, 84% of the same age group are prone to be loyal to companies that will help them contribute to an environmental and social cause.
Get the Edenark Group ISO 140001 Certification
Lastly, your business needs to be ESG compliant by getting the Edenark Group ISO 140001 certification. Our partner, Edenark Group, is organizing a sustainability program to help small and large businesses thrive above the competition and boost profits.
There are several benefits to this Edenark Group certification. You get to attract and retain top talents as employees, get impressive investors from stakeholders, and remain compliant with regulatory bodies such as the SEC. The SEC, FINRA, World Bank, ISO, and even the United Nations support the certification.
Great Employee Relationship Management
To remain ESG compliant, you must maintain a cordial relationship with your workforce. According to a survey, 90% of HR professionals believe that establishing and maintaining meaningful relationships with your workforce is a crucial ingredient for success.
Diversity Focused Hiring
You should ensure that you get the best people to work for your business – across all ages, races and genders. However, these factors do not have a bearing on their abilities to perform specific tasks.
Last year, with the increase of the Black Lives Matter protests, many called on the business community for more diversity in the workplace. For a business looking to gain more exposure, you need various ideas and inputs from a creative, divorce workforce to create products and services beneficial to everyone. Chief Diversity Officers have become an increasingly sought after and busier position for many businesses.
According to a survey, about 50% of professionals admit that HR managers are not held accountable for interviewing and hiring employees across various diversities. So you should look at eliminating these barriers if you have not already.
More so, your hiring team can create a centralized interview panel that objectively reflects your talent structure.
Transparency in Recruitment
Transparency is a critical ingredient in ensuring that you remain ESG compliant and keep your investors satisfied. Therefore, you should be transparent about the following process:
- Selection process: Communicate clearly about each recruitment process is done and the interview stages. State if there would be an automation process to filter candidates.
- Salary: Allow your potential candidates to know about the salary prospects. In the long run, being upfront allows you to sieve out over and under-qualified candidates.
- Benefit Packages: It is essential to outline all the benefits your company provides to an employee instead of resorting to empty promises.
The business landscape is shifting and many decisions that were seen as expensive could become mandatory. New SEC rules mandating ESG compliancy could become law and many businesses have already gotten out ahead of this potentiality. Becoming ESG complaint can help your business attract top talent and help the environment regardless of your businesses industry.
You can also reach out to us to discuss how we can help your business reduce expenses, maximize profits and become ESG compliant.
Published by Marc Freedman
Marc currently serves as our Chief Cost Evaluator, expertly advising our client management team on how to help you successfully achieve your business and financial growth goals. A respected mentor to all he consults with, he is an avid collaborator and contributor to the spend consultant community, guiding thought leaders to formulate, design, and install the best operational solutions available to their clients.