Environmental, Social, and Governance (ESG)

Environmental, Social, and Governance (ESG)

Paving the Way for a Sustainable Future: OneCert International’s Vision for ESG Assurance Services

Before we dive into the potential of ESG, let’s talk about what it means? ESG refers to a framework used to assess a company’s approach to sustainability, environmental impact, deals with its stakeholders, ensuring transparency and ethical governance. It has moved beyond being a mere trend. It’s a broad concept, but when broken down, it depicts how a business operates at its core. The three pillars of ESG are, Environment, Social and Governance.

Environment: How does a company impact the environment? Are they actively reducing their carbon footprint, implementing responsible waste management practices, and utilizing resources efficiently? Sustainability isn’t just about going green anymore—it’s about making choices that protect and preserve the future of the planet.

Examples of such choices include-

• Reducing Carbon Footprint: Companies can implement energy-efficient systems, use renewable energy sources, and adopt green technologies. The first step is to assess their carbon footprint. For instance, a manufacturing company could switch to solar energy or invest in energy-efficient machinery to reduce its carbon emissions.
• Waste Reduction: Implementing a zero-waste policy or reducing plastic use can significantly contribute to environmental preservation. A company might initiate a recycling program and use biodegradable materials for packaging.
• Sustainable Sourcing: A business that commits to sourcing raw materials from sustainable suppliers plays a key role in reducing the environmental impact of its supply chain. For example, a fashion brand might choose to use organic cotton or recycled fabrics.

Social:  How does a company engage with its stakeholders, including employees, customers, suppliers, and the communities it affects? The pillar is about ensuring that the business operates with fairness, inclusivity, and responsibility. Social impact includes everything from ensuring safe working conditions to promoting diversity and equality, and even engaging with local communities.

By evaluating these social factors, investors can make well-informed choices that encourage ethical and sustainable business operations. Additionally, companies that emphasize social responsibility showcase their dedication to ethical standards and their commitment to fostering positive societal impact.

Governance: Governance looks at how a company is structured, the transparency of its operations, how decisions are made, and whether the business adheres to laws and ethical standards. Its components include –

• Board Diversity and Structure: A company with a diverse and independent board of directors can make better decisions and manage risks more effectively. For example, a company might ensure that women and minorities are well-represented at the decision-making table.
• Transparency and Reporting: Companies are expected to disclose relevant information in a clear and honest manner, from financial performance to ESG goals. A business might publish an annual sustainability report outlining its progress on environmental and social metrics, providing transparency to stakeholders
• Ethical Business Practices: Companies that prioritize strong anti-corruption measures, fair competition, and integrity in all their dealings are seen as having strong governance. A company could adopt a whistleblower policy to encourage reporting of unethical practices.

ESG has evolved from a trendy concept to a necessity for businesses. The market is changing, and so are consumer and investor expectations. More people today are choosing to support companies that care about their social and environmental impacts. Investors are increasingly funding businesses that demonstrate ethical practices and sustainable operations.

The benefits are clear—companies that adopt ESG practices are more likely to thrive in the long run. They attract investors who are increasingly looking for socially responsible opportunities, and they build customer loyalty by aligning with values that matter to their audience. For employees, working for an ESG-conscious company can mean a greater sense of purpose and pride in their work. By adopting ESG standards proactively, businesses can stay ahead of the curve, avoiding fines, penalties, and reputation damage.

The Securities and Exchange Board of India (SEBI) has introduced the Business Responsibility and Sustainability Reporting (BRSR) framework, which requires companies to disclose their ESG initiatives. This helps investors and stakeholders understand a company’s impact on the environment and society.

It is divided into 2 parts:
✅ BRSR Core (Mandatory for top 150 listed companies by FY27)
✅ BRSR Comprehensive (Full-fledged disclosure covering various ESG factors)

• ESG reporting is mandatory for the top 1000 listed companies in India.
• However, companies working with these large firms—such as suppliers, vendors, and business partners—will also need to align with these standards in the near future according to SEBI.

1. Environmental Responsibility:
   • 🌱 Carbon Emissions: Direct & indirect emissions (Scope 1, 2 & 3)
   • 🌱 Energy Consumption: Renewable vs. non-renewable energy use
   • 🌱 Water Usage: Total consumption and conservation efforts
   • 🌱 Waste Management: Recycling, hazardous waste handling, and disposal
2. Social Responsibility:
   • 👩‍💼 Employee Well-being: Diversity, gender ratio, and inclusivity
   • 🏥 Workplace Safety: Health & safety measures for employees
   • 📢 Consumer Rights & Data Privacy: Ethical business practices in dealing with customers.
   • 🤝 CSR & Community Impact: Initiatives supporting local communities
3. Governance Transparency:
   • 📜 Board Diversity: Representation of women and independent directors
   • ⚖ Ethical Business Conduct: Anti-corruption and whistleblower policies
   • 📊 Financial Transparency: Proper disclosure of ESG investments and risks
   • 🔎 Regulatory Compliance: Following all government and SEBI norms

Even though ESG reporting is not yet mandatory for smaller firms, adopting ESG practices will:
✅ Builds trust with customers and investors
✅ Improves brand reputation
✅ Prepares businesses for future regulations
✅ Creates a more sustainable and ethical work environment

Risk Mitigation: ESG factors can help companies identify and mitigate risks which may have an impact on their financial performance. For example, companies that effectively manage environmental risks, such as climate change, can avoid costly environmental liabilities and regulatory fines. Likewise, companies with strong governance practices may have better risk management and more effective oversight of operations.

Cost Reduction: Sustainable and socially responsible practices can help in cost reductions. For example, energy-efficient initiatives reduce operational expenses, and responsible supply chain practices can lower procurement costs and minimize disturbances.

Reputation and Brand: Positive ESG performance can enhance a company’s reputation and brand, leading to increased customer loyalty, market share, and, ultimately, revenue.

Access to Capital: Many investors and financial institutions are integrating ESG criteria into their investment decisions. Companies that perform well on ESG metrics may have better access to capital and may benefit from lower loan costs.

Risk mitigation: ESG factors can help companies identify and mitigate risks that may have an impact on their financial performance.

With 17 years of experience working in the agricultural and sustainability sector, we understood the importance of sustainability even when it wasn’t globally recognized. With around 48 auditors in our team including those outside India we have worked with lakhs of clients in this sector and have now expanded our services to include sustainability reporting, assurance & assessment services.

1. Global Recognition and Credibility
   • OneCert International is a well-recognized certification body with a strong reputation in sustainability and compliance services. The company is accredited and follows globally recognized ESG frameworks, ensuring that businesses receive certifications that hold value in international markets.
2. Industry Experience
   • Till date, we have collaborated with lakhs of farmers across 32 countries. Accredited and certified lakhs of products. Evaluated data from lakhs of farmers and trained approximately 20,000 farmers and industry specialists. Our vast experience in the field provides a significant head start to others.
3. Comprehensive ESG Solutions
   • We provide end-to-end ESG solutions, including sustainability assessments, ESG reporting, compliance audits, and strategic advisory services. Whether you are a startup or an established enterprise, our tailored services will help you meet ESG standards efficiently.
4. Cost-Effective and Efficient Services
   • ESG compliance can be resource-intensive. We offer cost-effective services that do not compromise on quality, making ESG compliance more accessible for businesses of all sizes.
5. Commitment to Sustainability and Ethical Practices
   • We not only provide ESG assurance services but also practice sustainability and ethical governance within its own operations. This commitment reflects in the quality of service they provide to their clients.

At OneCert International, we are closely monitoring the growing significance of European Union (EU) ESG regulations as we continue to innovate in the field of ESG services. The EU has been a leader in promoting corporate accountability, creating an increasingly detailed framework that demands transparency and responsible business practices. For companies worldwide, including those in India and other regions, aligning with EU ESG standards is more than just fulfilling regulatory obligations—it’s a chance to lead by example in responsible business conduct. With initiatives like the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy, the EU has set clear benchmarks for measuring, reporting, and enhancing ESG performance. We are here to help businesses, both in Jaipur and globally, bridge the gap between local operations and international ESG standards, offering tailored solutions to align with EU regulations effectively.

At the heart of everything we do is a commitment to making business better—for the people involved, the communities impacted, and the world we all share. Through OneCert International, we’re helping companies shape the future of ESG, turning challenges into opportunities for growth, innovation, and positive change.

• Comprehensive Evaluation: We assess a company’s practices in all three ESG pillars—environmental impact, social responsibility, and governance. This involves an in-depth look at how the company operates, both internally and externally, and where they stand in terms of sustainability, fairness, and transparency.
• Global Recognition: As a globally recognized certification body, our ESG compliance carries significant weight. Companies adopting these practices could use it to demonstrate their commitment to the world, attracting like-minded investors, partners, and customers.

Training and Manpower Development for ESG Implementation: OneCert is well known for its training programs, which equip professionals with the knowledge they need to excel in certification and compliance. By expanding its training division to include ESG-related courses, we would provide businesses with the tools and resources they need to implement ESG practices effectively. These training programs cover topics like sustainable resource management, ethical leadership, and social impact assessments.