Environment, Social and Governance (ESG)

ESG is a framework designed to be embedded into an organisation’s strategy that considers the needs and ways to generate shared stakeholder value.
The framework also helps stakeholders understand how an organisation manages risks and
opportunities around sustainability issues. It also assesses an organisation’s business practises and
performance on various sustainability and ethical issues.

Guiding Principles

– ESG is embedded in the business.
– Every company has set targets and initiatives to create sustainable value for all stakeholders.
– There are sustainability commitments in all areas of operation within a company.

ENVIRONMENT

Environmental factors involve considerations of an organisation’s overall impact on the environment and potential risks and opportunities it faces because of environmental issues such as climate change and measures to protect natural resources.
Environmental factors include the following:
– Environmental Management policy and plan
– Water and waste management
– Energy consumption,
– Greenhouse gas emissions
– Carbon footprint reduction

SOCIAL

Social factors address how a company treats different stakeholders such as Employees, Communities, Customers, Suppliers, etc.

EMPLOYEES

Health and Safety policy and plan
Employee Wellbeing/Wellness
Incident Management/Investigation procedure
Fair pay and employee benefits
Equal employment opportunities
Health and Safety – Zero tolerance for harm
Employee working conditions

COMMUNITIES

(Job creation and poverty alleviation)

Inclusive local procurement

Local employment opportunities
Skills Development (bursaries)
Preferential procurement
SME Development
Corporate Social Investment
Empowering Women in Mining

GOVERNANCE

Governance factors examine how a company polices itself, focusing on internal controls and practices
to maintain compliance with regulations, industry best practices and corporate policies.

Governance factors include the following:

Corporate governance
Enterprise Risk Management
Legal compliance Register
Compliance and Ethics Management
Board Oversight (ESG Matters)
Appropriate disclosures (Global Reporting Initiatives; Climate change, Carbon Tax)
Supplier risk assessment/due diligence

Finally, alignment with ESG practises can help organisations to attract and retain high quality employees; boost employee morale; increase productivity by giving employees a sense of purpose.

Corporate social investment (CSI)

Corporate Social Investment business model that helps a company
be socially accountable to itself, its stakeholders and the public.

From small to large companies, everyone has the responsibility and must commit to building a more sustainable world, economically, socially and environmentally.

This can be done by establishing Corporate social responsibility representative of the SDG goals to save the planet.

Benefit: If a corporate put in the effort to achieve CR it will improve the overall supply chain and operational cost savings.

Ciyandza will conduct a CSI Audit, which will include Environmental and Social analysis to define which actions need to be taken for the company to reduce its environmental impact and overall greenhouse gas emissions.

Ciyandza will develop and implement a programme unique to your company’s needs to achieve corporate social responsibility and contribute to a better world

Environment, Social and Governance (ESG) – Strategy Development and Implementation