ESG Inquiry Tool
CRITICAL QUESTIONS FOR A MORE SUSTAINABLE FUTURE
Background
As builders and operators of the future, how do you ensure you are developing a resilient company that will benefit society?
Join founders, leaders and teams who are integrating Environmental, Social, and Governance considerations into core business practices. Consider where your company is on the ESG journey and discover the most relevant questions you can bring to your next board meeting or team workshop, and incorporate new questions as you progress.
To take it a step further, use the downloadable survey to query your employees, board members, and investors and further prioritize relevant questions for your organization.
Identify your phase
Foundation
Forming the bedrock of ESG-aligned business practices.
Integration
Building on Foundational questions, and integrating ESG efforts into every aspect of our business.
Activation
Growing our competency in evaluating our ESG-aligned performance over time.
Choose a question set
Framing ESG
What does our company do for profit that makes a positive difference for a broad group of stakeholders - people and the planet? How do our vision, mission and values become more alive every day?
Who are our stakeholders? How do we balance trade-offs between goals of shareholders and a broader group of stakeholders? How do we engage with stakeholders from the communities we impact and who influence our decisions?
How should we define and share what sustainability means for our organization? How can good ESG practices drive long-term performance?
Who is responsible for our sustainability efforts? How does the C-suite manage and communicate about ESG topics? How do we ensure mechanisms for addressing performance issues?
How do we identify positive and negative E, S, or G impacts across our value chain, and integrate ESG considerations into decision making practices?
How does our business model align with achieving the UN Sustainable Development Goals or other sustainable development frameworks and standards?
Environmental
1
What are the most significant environmental impacts of our products, operations, supply chain and goals, and how do we actively steward natural resources (energy, water, waste)?
What risks posed by climate change do we face, and how will our business manage the transition to a net-zero carbon economy?
Social
How are our operations, products, and voice actively contributing to gender, racial and ethnic justice, and challenging inequality? How does our business reflect the knowledge and needs of communities who experience systemic inequities?
How do we create a fair and inclusive company and incorporate diversity, equity and inclusion into our culture, hiring, pay structure and career advancement practices? How do we evaluate diversity at the staff, executive and board levels? How do we create company routines that authentically acknowledge and celebrate diversity and human rights?
How do we create a healthy and engaging workplace and empower our employees (e.g. educational opportunities)?
Governance
How do we enable board oversight of ESG performance, strategy and risk (e.g. independent and impartial board members)? Are our executive compensation and remuneration policies aligned with long-term performance? Do we tie corporate pay to ESG performance?
Definitions
CIRCULAR ECONOMY
An economic system aiming to eliminate waste and the continual dependence on natural resources, and address climate change, biodiversity loss, and pollution.
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG)
Sustainability standards used by companies and investors to evaluate risks and opportunities, set goals, and measure performance across three dimensions, (E) Performance related to topics such as natural resource use, climate risks, and waste, (S) Performance related to treatment of individuals, organizations, communities and society, and (G) Performance related to company leadership and fair, accountable and transparent corporate practices and actions. Key topics include :
GOVERNANCE
SOCIAL
ENVIRONMENTAL
Air pollution
Carbon footprint
Climate change
Cloud sustainability
Electronic waste
Resource efficiency
Environmental justice
Habitat / biodiversity
Product lifecycle management
Supplier assessments
Sustainable materials and packaging
Waste production and recycling
Water usage
Animal welfare
Community health and safety
Consumer protection
Diversity, equity, justice and inclusion
Data protection and privacy
Ethical technology
Ethical supply chain
Health and wellness
Human rights
Occupational health and safety
Stakeholder engagement
Job quality
Labor practices
Pay equity
Accountability mechanisms
Anti-bribery and anti-corruption
Board oversight
Climate change
Culture
Diversity, equity, justice and inclusion
Ethics
Executive pay
Non-discrimination
Purpose
Transparency
ETHICAL TECHNOLOGY
Considering the potential effects of technology on people, the planet, and humanity. Assessing the values and morals that guide technology production, and the impacts of technology use.
IMPACT
The effects of an organization's products, services and operations on the environment, society, and the economy -- both positive and negative -- as well as efforts to produce social good through philanthropy or other company initiatives.
MATERIALITY AND MATERIAL TOPICS
A lens for understanding the relevance of specific issues or topics for a business and its impacts in society. “Material topics” are prioritized sustainability impact areas (e.g. carbon emissions, diversity and inclusion). A “materiality analysis” reveals topics that both, 1) influence stakeholder assessments of a company and 2) the company significantly impacts. Material topics can be financially relevant now or in the future. Companies can utilize materiality assessments to identify which ESG topics to focus on and disclose information about to stakeholders – including investors, customers, and employees.
MISSION
Why the company exists, and its activities and strategies to achieve the Vision.
PURPOSE STATEMENT
A purpose statement articulates what a company does for profit that benefits a broader group of stakeholders, including humanity and the planet.
REPORTING FRAMEWORKS
Standards bodies serve the purpose of providing resources and third-party frameworks for assessing and reporting on material topics. Two major ESG reporting frameworks are the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI). SASB focuses on an investor audience while GRI focuses on a broader group of stakeholders. SASB and GRI can be helpful references to identify material topics and support sustainability reporting and communications. In 2017 The Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD) released recommendations to provide guidance on climate related disclosures.
STAKEHOLDERS
People or entities who are impacted by a business and its products, or who significantly influence the company’s operations. Examples of stakeholders include employees, customers, capital providers, governments, and local communities.
SUSTAINABILITY
Stewarding environmental, societal and organizational well-being - recognizing company success is inextricably linked to the health of the world in which it operates, now and in the future.
In 2015 the United Nations General Assembly established seventeen UN Sustainable Development Goals intended to be achieved by 2030. These are interrelated global goals focused on building a more sustainable and equitable future for everyone.
VALUE CHAIN
The activities an organization performs to build and deliver a valuable product or service.
VALUES
Guideposts or lenses to aid decision making and behavior, expressing what the company stands for internally and externally.
VISION
The company's North Star - a future state the organization is striving to achieve.
Tandem Impact wishes to thank the following practitioners for reviewing and sharing feedback to support the development of the ESG Inquiry Tool: Alix Dunn, Facilitator; Lennard Oehlers, ESG Officer at FMO; Marie-Josée Privyk, Head of ESG Innovation at Novisto; Jasper Veel, Corporate Governance Officer at FMO.
The ESG Inquiry Tool and information contained on this website is intended solely for general informational purposes only. Under no circumstances should any content on this website be construed as legal, tax, investment or accounting advice by Tandem Impact. Our hope is you find the information provided informative, useful, and educational, and we would be happy to connect if you have any questions. Third party links have not been verified by Tandem Impact and the inclusion of these links should not be interpreted as an endorsement or confirmation of the content within the links. For additional information, please see our Terms and Conditions.
ESG Inquiry Tool
CRITICAL QUESTIONS FOR A MORE SUSTAINABLE FUTURE
Developed by Tandem Impact
Tandem Impact is a sustainability consulting firm.
We partner with leaders focused on long term value creation — aligning with global goals to combat climate change, creating inclusive organizations, developing safe and responsible technology, and operating with accountability and transparency.
© 2021 Tandem Impact LLC. All rights reserved.
