Approach to ESG Policy

In business practice, developing and implementing effective ESG policy is not without challenges. This chapter briefly outlines some of the major challenges and provides a detailed description of a framework recommended by McKinsey that entails the processes for conception and development, as well as for the implementation of a comprehensive ESG policy. A successful ESG policy requires a comprehensive understanding of the strategic purpose of ESG initiatives and the level of performance targets. The effective development and implementation of ESG policy involves the processes of mapping the business model with ESG dimensions, defining ESG targets and monitoring tools for the organization, embedding ESG in the overall business strategy as well as a well-designed communication strategy for stakeholder communication to maintain social license to operate.