In recent years, modern enterprises are increasingly evaluated by more than the traditional definitions of quality and value in the products or services they provide. 

 

“Consumer, investor, regulatory and public eyes now focus on corporate environmental, social responsibility and governance (ESG) awareness as a key part of the brands they engage and support. This focus has led to a demand for companies to adopt visible ESG practices and to disclose and market their ESG performance,” states Ryan Coleman, Dayspring Technology Principal Consultant.

 

Speak with an experienced consultant at consulting@dayspringtechnology.com.

 

Below are reasons organizations are moving toward integrating ESG programs.

 

ESG: An Organization’s Integrity with Consumers

A visible ESG response by organizations helps to establish their integrity with consumers. The Pew Research Center reports that close to 70% of Gen Z and Millennial consumers believe addressing climate change should be a top priority of our society and expect reciprocal concern from the brands and services they consume. Older generations such as Gen X and the Boomers aren’t far behind. Over half of Americans consider human trafficking a critical social issue, and the impacts of this concern have been highlighted in a recent U.S. State Department Report. Corporate responses to both of these issues are critical components of a strong corporate ESG program.

 

The socially conscious public takes a dim view of companies that fail to recognize these concerns, but greenwashing or falsifying your record is even worse! 

 

Greenwashing is the practice of dressing up a product or service as environmentally conscious without any true positive change. 

 

Skeptics and activists often target industries known to impact the environment such as energy, transportation or agriculture for greenwashing activities and customers are highly likely to be aware of the gap between stated ESG goals and implementation. Examples of reputation killers may include inadequate disaster response, hiding the use of manufacturing pollutants behind subcontractors, or using “Earth-friendly” branding without truly producing an organic or low-impact product.  

 

What’s new in 2023? Read 2023 ISO Regulatory Compliance and Quality Management Standards Updates

 

Impact of Implementing ESG Programs

If your organization already operates an ESG program or wants to begin proving the value and integrity of your efforts, ISO standards provide a valuable framework for you to govern your ESG activities. These life sciences quality management system standards offer guidance on a wide range of ESG topics, including environmental management, social responsibility, occupational health and safety, and anti-bribery.

 

How to Use ISO Standards for ESG Programs

There are a number of ways to use ISO standards for ESG activities.  Discover how using an ESG program can impact your organization’s management system standards.

 

    • Using ISO standards as a framework for ESG management: ISO standards can be used as a framework for developing and implementing an ESG management system. This includes identifying, assessing and managing ESG risks, setting ESG objectives, and monitoring and reporting on ESG performance.
    • Using ISO standards as a basis for ESG reporting: ISO standards can be used as a basis for ESG reporting. This includes reporting on the organization's ESG policies, procedures, and performance against ESG indicators.
    • Using ISO standards for independent assurance: ISO standards can be used for independent assurance of an organization's ESG performance. This involves an independent party assessing whether the organization is meeting the requirements of the standard.

 

The Benefits of Using ISO Standards for ESG Programs

There are direct benefits to using ISO standards to govern ESG programs:

 

    • Improved ESG performance: ISO standards improve ESG performance by providing a framework for identifying, assessing and managing ESG risks.
    • Increased transparency: ISO standards can help organizations to increase transparency about their ESG performance by providing a common, repeatable and understandable framework for public reporting.
    • Enhanced credibility: ISO standards can enhance the credibility of an organizations' ESG claims by providing independent assurance that the organization is meeting the requirements of the standard.
    • Reduced liability: ISO standards can help organizations to reduce their risk of ESG-related liability by providing a framework for managing ESG risks that aligns with regulatory requirements, legal practice and continuous improvement goals.
    • Improved stakeholder relations: ISO standards improve an organization’s public relations by clearly demonstrating their commitment to ESG.

 

Case study: Using specific ISO standards for ESG performance

A large enterprise in the energy sector is using ISO standards to govern its ESG activities. The company has implemented ISO 14001, the international standard for environmental management, and ISO 26000, the international standard for social responsibility. The company is also in the process of implementing ISO 45001, the international standard for occupational health and safety management.

 

The enterprise has found that ISO standards have helped it to improve its ESG credibility. For example, the company has documented proof of a reduced environmental impact through ISO 14001 certified reporting. The company has also improved its social responsibility performance by implementing ISO 26000.

 

The company has also found that ISO standards have helped it to increase transparency about its ESG performance: they produce an annual ESG report that is based on the requirements of ISO 26000 and share it with their stakeholders. ISO standards will continue to help them to improve their ESG performance and increase transparency about their position and progress. 

 

At Dayspring, we would also encourage them and other concerned organizations to consider ISO 9001 as an overarching life sciences quality management system standard, too.

 

ISO standards can provide a valuable framework for you to govern your ESG activities. These standards offer guidance on a wide range of ESG topics, and they help organizations to improve their ESG performance, increase transparency, enhance credibility, reduce risk, and improve stakeholder relations.

 

If you are looking to improve your company’s ESG performance, consider using Dayspring Technology to select and apply the right ISO standards to your activities. These standards will provide you with a valuable framework for achieving your ESG goals and give you, the public, investors and employee stakeholders confidence they aren’t being greenwashed!

 

Learn how Dayspring Technology can help support your ESG systems and protocols - Email an experienced consultant today.