With our comprehensive services for sustainable governance and compliance, you can navigate safely through a multitude of complex issues and diverse requirements to ensure your sustainable economic success.

Our services in the area of ESG Governance & Compliance

  • Sustainable Finance
    • Advising banks, investment firms, capital management companies and insurance companies on regulatory obligations arising from sustainability legislation (including the Disclosure Regulation, EU taxonomy, sustainability reporting)
  •  Sustainable Corporate Governance
    • Advice and support in the analysis and implementation of sustainability-related regulatory requirements from the perspective of corporate governance
  • Development of an understanding of sustainability and of sustainable targets
  • Consulting on sustainable strategy and related topics
    • Integration into business and risk strategy, organizational implementation steps including “ESG function”, operational aspects such as employees, diversity, etc., customer-related aspects.
  • Practical advice on ESG compliance of business models, financial services and financial products
  • Consulting on the consideration of sustainability aspects in risk management
  • Holistic consulting through deep understanding of markets and business activities as well as ongoing consideration of the relevant regulatory requirements in each case
  • ESG readiness checks
  • Gap analyses
  • Implementation projects

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ESG Governance & Compliance Definition

ESG (Environmental Social Governance) criteria are a set of parameters that can be integrated into a company’s strategy. With ESG criteria, companies partly fulfill their legal obligations. To some extent, it is about the economy’s voluntary contribution to sustainable development in all respects above and beyond legal requirements. This includes, for example, an organization’s carbon footprint. ESG consists of criteria that are used by investors to evaluate a company. A lack of ESG management can lead to a poor assessment of the company by investors or a lack of appreciation for the company by employees and consumers.

What ESG criteria exist?

The ESG criteria include environmental, social and governance criteria. The criteria are attracting increasing attention from both companies and consumers. They are increasingly drawing attention from a wider audience due to the growing public importance of issues such as climate change and respect for human rights.

ESG examples

Examples of ESG with regard to the Environment (“E”)

These criteria include climate change mitigation, adaptation to climate change, sustainable use and protection of water and marine resources, transition to a circular economy, prevention and reduction of pollution, and protection and restoration of biodiversity and ecosystems. Examples include:

  • Reduction of greenhouse gas emissions 
  • Preparedness for flooding due to climate change 
  • Savings in water consumption 
  • Recycling of raw materials and/or products 
  • Sustainable management of forests

Examples of ESG with regard to Social aspects (“S”)

  • Social criteria relate, among other things, to how a company treats its employees or external service providers:
  • Protection of data and privacy 
  • Compliance with labor standards 
  • Respect for human rights and avoidance of child labor and slavery 
  • Fair remuneration 
  • Inclusive measures that promote diversity, equality and inclusion of employees

Examples of ESG with regard to Governance (“G”)

Governance criteria relate to aspects such as the management of a company. Important topics in this context include internal structures as well as controls and practices for compliance with regulations and guidelines. Examples include:

  • Sound risk management 
  • Measures to prevent corruption and bribery 
  • Maintenance of a whistleblower program 
  • Composition of the Management Board/Supervisory Board including diversity and structure 
  • Tax compliance
     

What is Governance Risk Compliance?

Governance Risk Compliance summarizes a company’s three most important levels of action for successful corporate management. The model can contribute to smooth cooperation between locations and departments at home and abroad.

Governance refers to the management of a company through defined guidelines. These include the definition of corporate objectives and strategy, the methodology for implementing corporate objectives and the planning of the resources required to achieve these objectives.

Risk refers to risk management. This involves identifying and dealing with risks. This can include an analysis of potential risks, the development of strategies to minimize risks and the establishment of a suitable way of dealing with the occurrence of a loss.
Compliance involves adherence to internal and external standards that are mandatory for the company or are voluntarily observed by the company.