Responsibility for dealing with ESG (Environmental, Social, and Governance) in a business often depends on the size and structure of the organisation.
Here are the key roles and departments typically involved:
1. Chief Sustainability Officer (CSO):
- In larger organisations, the CSO leads ESG strategy, implementation, and reporting.
2. ESG/Sustainability Team:
- Dedicated professionals who handle ESG initiatives, monitor compliance with regulations, & track progress toward sustainability goals.
3. Executive Leadership:
- The CEO and other C-suite executives play a critical role in prioritising ESG and embedding it into the company’s culture and strategy.
4. Board of Directors:
- Often tasked with oversight of ESG strategy and ensuring alignment with the company’s long-term goals and shareholder expectations.
5. Legal and Compliance Teams:
- Manage ESG-related risks, ensuring compliance with environmental regulations, labour laws, and governance requirements.
6. HR Department:
- Addresses the “S” (Social) aspect of ESG by fostering diversity, equity, and inclusion (DEI) initiatives, employee well-being programs, and ethical workplace practices.
7. Investor Relations Team:
- Communicates ESG strategies and achievements to investors, responding to growing demands for transparency on sustainability and governance issues.
8. Marketing and Communications Team:
- Shapes how ESG efforts are shared with stakeholders, ensuring authenticity and avoiding greenwashing.
9. Procurement and Supply Chain Management:
- Works on sustainable sourcing, monitoring supplier practices, and reducing the environmental footprint.
10. Operations and Facility Management:
- Responsible for implementing energy efficiency, waste reduction, and carbon footprint minimization practices.
Smaller Businesses:
- In SMEs, ESG responsibilities often fall under the leadership of the CEO or another senior executive, as they may not have a dedicated ESG team.
Who should be responsible? While specific roles vary, ESG should be a shared responsibility across departments. A cross-functional approach ensures that sustainability and ethical practices are embedded into every aspect of the business.
