Every April, we mark the anniversary of the birth of the modern environmental movement: Earth Day. The first Earth Day, April 22, 1970, “was a day for learning and expressing concern, not for protesting — a big news event, but one with little of the drama and tension” as reported by the New York Times.
Earth Day has endured and expanded: April is now dubbed “Earth Month”…and bumper stickers on many camper vans declare that “Earth Day is Everyday.” Today, it seems that our earth faces more “drama and tension” than ever before. We are living in a climate at risk. With Russia’s war on Ukraine, there are moments when it feels that human civilization itself is at risk.
There are forces of good at work on our earth at the same time. The U.S. Securities and Exchange Commission (SEC) recently proposed required climate-related disclosures. Environmental, Social, and Governance (ESG) Programs have come to the forefront as companies consider how to be more “flexible and responsive” to world events. Similarly, ESG has become an important priority for TPRM practitioners, and we’d like to take a moment this Earth Month to highlight our Top 5 ESG resources.
This informative webinar answers the question many TPRM professionals have about ESG, which is “What does this mean to me?” Several experts joined me to discuss five key ESG topics including Phil Redman (Offering Manager, OneTrust), Ken Wolckenhauer (VP, Vendor Management, Nordea Bank), Tom Garrubba (VP Shared Assessments), and Ron Bradley (VP Shared Assessments).
- ESG is about the opportunity as much as it is about risk. How do you take action and take advantage of these opportunities?
- Tone at the Top matters. Buy-in and engagement from the senior levels are essential to ESG success.
- Measure what matters. Reporting is a fundamental part of any successful ESG program. Know what, how, and why to measure.
- ESG has been the wild west of TPRM, but that’s changing. Regulations are coming.
- Greenwashing exists and can undermine your efforts. Learn what to look for, and how to avoid it through audits and due diligence.
Watch the ESG Risk: What TPRM Needs To Know Webinar here.
Wondering about the impact of Scope 3 Emissions and other requirements? I explore what to expect in the new year and beyond for climate metrics and reporting requirements, highlighting three points in particular:
- Newly updated Task Force on Climate-related Financial Disclosures (TCFD) standards now come complete with the standard’s first scope 3 greenhouse gas emissions language.
- Accelerating efforts to consolidate a growing and often bewildering set of climate standards have been welcomed by the ESG community, but the rationalization process is not complete.
- Climate-focused regulations are emerging more rapidly and 2022 will see significant new reporting requirements in some jurisdictions.
We discuss how Nordea Bank made ESG a priority and how they’ve created and managed one of Europe’s most successful ESG programs with two of the key players who make it happen: Ken Wolckenhauer (VP, Vendor Management, Nordea Bank) and Maria Færgemann Eg (Chief Expert, Group Procurement, Nordea Bank), in conversation with Colleen Milazzo (Sr. VP, TPR Software Products, Shared Assessments), and myself, Gary Roboff (Senior Advisor, Shared Assessments).
Among Nordea’s key lessons learned:
- Use the tools that exist: certifications, sustainable development goals, (SDGs), the United Nations Global Compact.
- Support from Executive Management plays a pivotal role.
- Create and execute clear mandates — governance structures and policies are crucial.
- What gets measured gets done (KPIs, targets).
- Global companies operate in different markets and cultures – what may seem intuitively “right” may vary by market and culture.
Watch the “ESG in the Extended Enterprise – A Journey” Member Forum Call here. Please note, this content is available to members only.
Eric Krell writes about the invisible “E” in TPRM and its importance in ESG programs. Environmental and climate concerns affect the Social and Governance spheres of ESG, especially when it comes to third parties. Read this post to understand the importance of “Monitor, Adjust, Align and Enhance.”
As it nears the end of its second month, nothing about the war in Ukraine is going as planned or expected. I join our Shared Assessments CEO Andrew Moyad as he takes a deep dive into the geopolitical impacts of Russia’s invasion of Ukraine on global ESG efforts with Cristina Dolan (Head of Global Alliances, RSA NetWitness). Listen in as we discuss threats, misunderstandings, supply chain impacts, and much more.