AuditBoard+2023年ESG成熟度基準(zhǔn)報(bào)告-英

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TableofContents

RisingtotheESGChallenge:AcceleratingEffort,MinimizingRisk

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PartOne:KeyFindingsFromthe2023ESGMaturityBenchmarkingReport

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PartTwo:FiveInitiativestoAdvanceYourESGMaturity

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There’sNoTimeLikethePresenttoStartMaturingYourESGPractices22

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RisingtotheESGChallenge:AcceleratingEffort,MinimizingRisk

Inabusinesslandscapeincreasinglyattunedtosustainability-focusedstakeholders,consumerdemands,andinternationalregulations,companiesaretakingchargeoftheirenvironmental,social,andgovernance(ESG)initiatives.

VoluntarydisclosureeffortsrevealthatmanybusinessesareconcernedwithESG

optics:anastonishing96%oftheS&P500self-publishedsustainabilityreportsin

2021,accordingtothe

GovernanceandAccountabilityInstitute

.Concurrently,whiletheSEC’sproposedclimatedisclosurerules*remainopentopubliccomment

asofAugust2023,many

anticipate

theywillbeformalizedbyyear’send—andhavealreadybegunembracingtheminresponsetomountingpressure.These

exampleshighlighttheincreasingpowerthateffectiveESGriskmanagementhastoshapeacompany’sfinancialstandingandreputation.

*TheSEC’sproposednewruleamendmentswouldrequirelistedcompaniestodiscloseclimate-relatedinformationintheirregistrationstatementsandperiodicreports,suchasonForm10-K,including:

?Risksthatare“reasonablylikelytohaveamaterialimpactontheirbusiness,resultsofoperations,orfinancialcondition.”

?Dataonthebusiness’sdirectgreenhousegas(GHG)emissions(Scope1)and

indirectemissionsfrompurchasedelectricityorotherformsofenergy(Scope2).

?CertaintypesofGHGemissionsfromupstreamanddownstreamactivitiesinabusiness’svaluechain(Scope3).

DespitegrowingdemandfrominvestorsandstakeholdersforcommitmenttoESG,

manyorganizationsfaceobstacleswhenitcomestoensuringtheyareaccuratelycapturingandreportingESGdataanddevelopingeffectiveESGriskmanagementpractices.Thesechallengeslargelyarisefrom1)limitedresourcesandinfrastructuretosupportESGdataandmetricstrackingandverification,and2)thedifficultyof

navigatingthe

confusinguniverse

ofESGstandard-settingorganizations.

InAuditBoard’sinauguralESGMaturityBenchmarkingReport:AcceleratingESG

Transformation,wesoughttoexplorethestateofESGmaturityin2023.Tohelp

businessesseekingtomaturetheirESGeffortsandpractices,we’vebrokenESGdownintofourfundamentalareasofcompetencyinordertoassessthematurityofan

organization’sESGprogram:

ESGAreasofCompetency

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Reportingand

disclosures

Investment

andprocesses

Governance

andcontrols

Breadth

anddepth

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2

1

3

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Usingtheseareasofcompetency,AuditBoarddevelopedanESGmaturityscale,whichinformedour2023ESGMaturityBenchmarkingReportsurvey.ThissurveywasconductedfromApril–June2023withover200audit,risk,andcompliance

professionalsinvolvedinESGmanagementattheirorganizations.

InPartOneofthe2023ESGMaturityBenchmarkingReport:AcceleratingESG

Transformation,wewilldiveintosurveyfindingsilluminatinghoworganizationsaremanagingtheirESGprogramstoday.InPartTwo,wewilldiscussstepsorganizationscantaketodevelopESGprocessesandadvancetheiroverallESGmaturity.

SurveyDemographics

Over73%ofourrespondentswerefrommedium(1,000-10,000employees)tolarge(over10,000employees)sizecompanies.74%wereatpubliccompanies.

55%ofourrespondentsheldpositionsinInternalAudit,and21%heldrolesinESG,

Sustainability,orCorporateSocialfunctions.Sampletitlesofourrespondentsincluded:VP,CorporateSustainability,SVPInternalAudit&ERM,GlobalDirector,ESG,Directorof

RiskManagement,Sr.Manager,FinancialCompliance.

ESGMaturityModel(Figure1)

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2023ESGMaturityAssessmentResults(Figure2)

AreaofCompetency

Fundamental

Efficient

Strategic

Groundbreaking

Investment&Processes

WhatinvestmentshasyourorganizationmadeinESGheadcount,processesandtechnology?

17%

18%

33%

32%

Breadth&Depth

Howisyourorganizationengagingstakeholders,

determiningmaterialityandcoveringenvironmental,socialandgovernancetopics?

38%

18%

34%

10%

Reporting&Disclosures

Whatpublicreports,disclosures,commitmentsandratingshasyourorganizationpublished?

50%

40%

10%

0%

Governance&Controls

Howdoesyourorganizationmanagecompliance,audits,anddatagovernance?

40%

21%

20%

19%

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TopTakeawaysFromthe2023ESGMaturityBenchmarkingReport:

AcceleratingESGTransformation

1.OfthefourareasofESGcompetency,surveyrespondentsdisplayedthemostmaturescoresinInvestment&Processes.

2.ThemosttrackedtopicsineachESGcategorywere:Climatechangeandcarbonemissions

(Environmental,61%),Genderanddiversity(Social,64%),andBoardcomposition(Governance,54%).

3.OfthefourareasofESGcompetency,surveyrespondentsdisplayedthelowestmaturityinReporting&Disclosures.

4.ESGisnotincludedaspartofERMinastrategicwayinmanyorganizations.

5.ThemajorityofrespondentshavelittletonogovernanceoroversightovertheirESGprogramstoday.Two-thirdsofoursurveyrespondentshavenotimplementedESGcontrols.

OfthefourareasofESGcompetency,surveyrespondentsdisplayedtheleastmaturescoresinReporting&Disclosures.

50%

oforganizationsdemonstrated

Fundamentalmaturity

0%

oforganizationsdemonstrated

Groundbreakingmaturity

OfthefourareasofESGcompetency,surveyrespondentsdisplayedthemostmaturescoresinInvestment&Processes.

65%

oforganizationsdemonstratedStrategicorGroundbreakingmaturity

86%

ofourrespondentsreporthavinganESGheadcount

ESGisnotbeingincludedaspartofERMinastrategicway

inmanyorganizations.

40%

oforganizationsdon’tincludeESGrisksinERMstrategy

35%

oforganizationshavenotperformedamaterialityassessment

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PartOne:KeyFindingsFromthe2023ESGMaturityBenchmarkingReport

Takeaway#1:OfthefourareasofESGcompetency,surveyrespondentsdisplayedthemostmaturescoresin“Investment&Processes.”

65%ofourrespondentsscoredintheStrategic(33%)andGroundbreaking(32%)

tiersforESGInvestmentandProcesses.RespondentsinthesetierswhodisclosedtheirindustrywerepredominantlyrepresentedbytheIndustrialandFinance&

Insurancesectors,whichreflectstheheavilyregulatednatureofbothindustries.

Mostcompanies’initialESGeffortsbeginwithallocatingheadcountandbudgettowardESG.86%ofourrespondentsreporthavinganESGheadcount.1Ofthis86%:

?61%haveadedicatedESGteamorcommitteewithrepresentativesfromaudit,compliance,legal,and/orrisk.

?10%reporttheirESGheadcountsitswithintheaudit,risk,orcomplianceteam

intheirorganization.2

(Figure3)

ESGInvestments&Process

1Question:WhoisresponsibleforESGatyourorganization?

Base:209.

AnswerOptions:Wehaveadedicatedsustainability/ESGteam;Wehaveadedicatedheadcountthatispartofanotherteam;WehaveanESGcommitteewithrepresentativesfromdifferentdepartments;Wedon’thaveadesignatedperson/teamforESG.

2Question:WhichteamorgroupisresponsibleforESGatyourorganization?

Base:209.

AnswerOptions:Wedon’thaveadesignatedperson/teamforESG;Dedicatedsustainability/ESGteam;AnESGcommitteewithrepsfromdifferentdepartments;Audit,Risk,orCompliance;Legal;HR;Other

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Despitethesepositiveheadcountnumbers,thereissignificantroomfor

growthbeyondESGtitlesanddepartmentoptics.Whileadedicatedheadcount

demonstratesmostorganizationsaretakingaction,theircommitmenttobudgetandresourcesleavessignificantroomforimprovement.

46%ofourrespondentsreportedthatthereisnodedicatedbudgetallocated

forESG.AmongthosewithanESGbudget,only9%haveabudgetallocatedfor

ESGtechnology.3IncreasedbudgetforESGresourcesandtechnologydependsonleadershipsponsorship,whichmayexperienceasurgewhentheSEC’sproposedruleamendmentsbecomeformalized.

Takeaway#2:ThemosttrackedtopicsineachESGcategorywere:

Climatechangeandcarbonemissions(Environmental,61%)4,Genderanddiversity(Social,64%)5,andBoardcomposition(Governance,54%)6.

Dependingontheirindustryandgeographicregion,businessestrackedawiderangeofESGtopics,highlightingthatESGisnotaone-size-fits-allriskcategory.For

example:Industrialorganizationsrepresentalargeportionofoursurveyrespondents

whoreporttrackingwaterscarcity,whileGovernment&Educationrespondentstrackedfeweroveralltopicsthanothersectorsacrossallcategories.Thisindicatesthat

individualbusinessesmustcatertheirESGresponsestotherisksspecifictotheir

business—whichiswhyperformingamaterialityassessmentiscrucialtoeffectiveESGriskmanagement.

Smallerorganizations(lessthan1,000employees)tendtotrackclimatechange

&carbonemissions(Environmental),humanrights,customersatisfaction,data

protection/privacy(Social),andexecutivecompensation(Governance).ThisindicatesthatthesemaybeareaswheremanyorganizationsbegintheirESGinitiatives.

3Question:HasanybudgetbeenallocatedtogrowyourESGprogram?

Base:209.

AnswerOptions:No,adedicatedbudgethasyettobeallocatedforESG;Yes,wehaveaheadcountbudgetallocated;Yes,wehaveatechnologybudgetallocated;Yes,wehavebothheadcountand

technologybudgetallocated.

4Question:Whatenvironmentaltopicsdoesyourorganizationtrack?

Base:208.

AnswerOptions:None;Climate/Carbon;Airandwaterpollution;Biodiversity;Deforestation;Energyefficiency;Wastemanagement;Waterscarcity;Other.

5Question:Whatsocialtopicsdoesyourorganizationtrack?

Base:208.

AnswerOptions:None;Customersatisfaction;Dataprotectionandprivacy;Genderanddiversity;Employeeengagement;Communityrelations;Humanrights;Laborstandards;Other.

6Question:Whatgovernancetopicsdoesyourorganizationtrack?

Base:208.

AnswerOptions:Boardcomposition;Auditcommitteestructure;Briberyandcorruption;Executivecompensation;Lobbying;Politicalcontributions;Whistleblowerschemes;Other.

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TopFourEnvironmentalTopicsTracked

(Figure4)

TopFourSocialTopicsTracked

(Figure5)

TopFourGovernanceTopicsTracked

(Figure6)

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ESGReporting&Disclosures(Figure7)Takeaway#3:InReportingandDisclosures,halfofrespondentsscored

inthelowest“Fundamental”levelofmaturity,only10%demonstratedStrategicmaturity,andnonescoredintheGroundbreakingcategory—thehighestlevelofmaturity.

TheselowmaturityscoresinReportingandDisclosuresindicateroomforimprovementinESGdataverificationandreportingpractices.

64%ofrespondentsreportedthattheirorganizationshavepublisheda

sustainabilityreport,7andnearly70%havemadeESGdisclosuresorpublic

commitments.8Whiletheannualsustainabilityreportisapositiveoutput,itshouldnotbetheonlyfocusofyourESGprogram–especiallyasmorecompliancerequirementsarrive.Inparticular,businessesthatpublishreportsanddisclosuresmusttakegreatcaretoensuretheirESGdataisaccurateandreliable.ReportinginaccurateESGdataorworse,greenwashing—purposefullymakingfalseormisleadingclaimsaboutthe

environmentalbenefitsofabusiness,product,orpractice—canleadtoreputationaldamagewhenexposed,andisneverworththerisk.

7Question:Hasyourorganizationpublishedasustainabilityreport?

Base:160.

AnswerOptions:Yes;No,butweplantointhenextyear;No,andwedonotplantointhenextyear.

8Question:Hasyourorganizationmadeanypubliccommitmentsordisclosuresaligningtothefollowing?(selectallthatapply)

Base:160.

AnswerOptions:Notapplicable;Net-zerocarbonemissions;Science-BasedTargetsInitiative;Carbon

footprintreduction;Waterusagereduction;Increaseinminoritiesinyourworkforce;Volunteerhoursloggedbyemployees;Monetarypledges;Other(pleasespecify).

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Therisingprevalenceofgreenwashing

emphasizestheneedtohavestrongESGdataverificationmechanismsinplace.Asregulatoryrequirementsbecomemorestandardized,notonlywillcompaniesneedtoreportmoreextensivelyonESG

climate-relatedrisks,theywillalsoneedtotakeextrastepstoperformassuranceoncertaindiscloseddataandmetrics.Asitstandscurrently:

?Nearly24%ofrespondentsdon’tcollectanyevidencetosupporttheirESGmetrics,while42%collectevidence—butonlyforaportionofESGmetrics.9

?90%ofourrespondentsratedinthebottomhalfofmaturitylevelsin

reportinganddisclosures,and0%scoredintheGroundbreakingcategory

—representingsignificantroomforgrowthandimprovement.

Makingaccurate,verifiedESGdataavailabletointernalstakeholders—suchas

executiveleadershipandtheboard—iscriticalforobtainingnecessarysupport

andresourcestomatureyourESGprogram.AsESGbecomesabiggerpriority,

organizationsmustalsobepreparedtorespondtoRFPsandotherinquiriesfrom

customersandotherbusinessstakeholders,furtherhighlightingtheimportanceofdataverification.Ourfindingsshow:

?While72%ofourrespondentstrackatleastsomeESGdatametricsacross

theirphysicallocations,offices,andmanufacturingplants,10only17%centralizeESGdatacollectedonaregularbasisandmakeitaccessibletointernal

stakeholders.11

?Only31%ofrespondentsperformthird-partyassuranceontheirESGdata,12representingroomforgrowthindataverificationaswell.

Theseresultspointtoasignificantopportunityfororganizationstofocuson

strengtheningtheirESGmetricsandmechanismsfordatacapture,organization,andverificationtomaturetheirlargerESGreportingcapabilities.

9Question:Doyoucollectevidencetosupportyourdatametrics?

Base:152.

AnswerOptions:Yes,forallESGmetrics;Yes,butonlyforaportionofESGmetrics;No,butweplantostartthisyear;No,andwedonotplantostartthisyear.

10Question:DoyoutrackESGdatametricsfromeachofyouroffices,manufacturingplants,and/orphysicallocations?

Base:209.

AnswerOptions:Yes,formostofourESGmetrics;Yes,butonlyforasmallnumberofESGmetrics;No,weonlycollectdatafromourheadquartersorasinglelocationonly;Wedon’tcollectESGdatatoday.

11Question:WhatisyourprocessforcollectingESGdata?

Base:209.

AnswerOptions:Wecollectdataviaemailonanadhocbasisasneeded(ex.whenapotentialcustomermakesaninquiryaboutacertainpractice);WeregularlycollectpredefinedESGdatafromvariousdata

owners;WecentralizeESGdatacollectedonaregularbasisandmakethisdataaccessibletointernal

stakeholders;WehaveautomationinplacetoregularlycollectpredefinedESGdata;Wedon’tcollectESGdatatoday.

12Question:Doyouhavethird-partyassuranceforanyofyourESGdata?

Base:152.

AnswerOptions:Yes;No,butweplantostartthisyear;No,andwedonotplantostartthisyear.

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Overall,theFinance&InsuranceindustrywasmoreadvancedthanotherindustriesinReportingandDisclosures,withthemajorityintheStrategicstageofmaturity.Thismaybeduetothepossibilitythatfinancialorganizationsaremoresavvyatproducingreportsanddisclosuresduetofamiliarity.Forexample,climateinvestorsandventure

capitalfirmsrequirecertaindisclosuresintheprocessofvettingtheirpartners.Asa

result,theymaybemorefamiliarwiththeclimate-relatedandfinancialdisclosurestheyarerequiredtoproduce.

Takeaway#4:ESGisnotbeingincludedaspartofERMinastrategicwayinmanyorganizations.

Nearly40%ofourrespondentsdon’tincludeESGrisksintheirERMstrategy,13

indicatingthatESGisnotyetembeddedasextensivelyinorganizationsasithasthepotentialtobe.Justasriskissomethingthataffectsallareasofabusiness,ESGmustbeembeddedinthebusinessformaximumimpact.

While60%ofourrespondentsareconsideringESGrisksintheirERMstrategies,only

33%arefocusedonbothESGrisksandopportunities.TheemphasisonESGrisks

indicatesthattherearelikelyareasofESGnotbeingsurfacedtodaythatpresent

materialbusinessopportunities.Matureriskmanagementrequiresconsiderationof

upsideaswellasdownsiderisk.AsignofESGmaturityisreachingastagewhere

ESGisregardedasacompetitivedifferentiatorandastrategicriskareatoinvestin.

DoyouincludeESGrisksandopportunitiesinyourERMstrategies?(Figure8)

13Question:DoyouincludeESGrisksandopportunitiesinyourenterpriseriskmanagementstrategies?

Base:176.

AnswerOptions:Yes,bothrisksandopportunities;Yes,butweonlyfocusonriskstoday;Yes,butweonly

focusonopportunitiestoday;No,butweplantointhenextyear;No,andwedonotplantointhenextyear.

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Howrecentwasyourlastmaterialityassessment?(Figure9)

Similartoriskassessments,ESGmaterialityassessmentsarekeytounderstandingwhatisimportanttotheorganization,andwheretherearerisksandopportunitiestoprioritize.Materialityassessmentsareusedtodetermine:

1.WhatESGtopicshavethemostimpactonthecompanyandaremostrelevanttostakeholders.

2.Howabusiness’sactivitiesimpacttheenvironmentandcommunitiesinwhichitoperates.

Nearly45%ofoursurveyrespondentshaveperformedanESGmaterialityassessmentwithinthelast12months,yet35%ofourrespondentshavenotperformeda

materialityassessmentatall—highlightinganeasyareatobegintakingactionin.14

14Question:Howrecentwasyourlastmaterialityassessment?

Base:176.

AnswerOptions:Withinthelast12months;12-24monthsago;2-3yearsago;3+yearsago;Ihavenotperformedamaterialityassessment.

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Takeaway#5:ThemajorityofrespondentshavelittletonogovernanceoroversightovertheirESGprogramstoday.

Whenitcametogovernanceandcontrols,oursurveyrespondentsdemonstratedawiderangeofalignmentwithdifferentESGreportingframeworks.OfthemanyESGstandard-settingorganizationsthatprovideguidance,thetopframeworksthatoursurveyrespondentsalignwithare:

?SASB(28%)

?TCFD(25%)

?GRI(25%)

Nearly80%ofoursurveyrespondentsperformbenchmarkingtoguidetheirESGefforts:15

?36%performad-hocresearch,24%workwithaconsultancy,and18%utilizeratingcomparisons.WebelievethesenumberswillonlycontinuetogrowasdemandforESGassuranceincreases.

Reportingframeworksleveragedbyorganizations(Figure10)

15Question:DoyoucurrentlydoanybenchmarkingtoguideyourESGprogram?

Base:160.

AnswerOptions:Ad-hocresearch;Ratingcomparison;Workwithaconsultancy;Notapplicable;Other

(pleasespecify).

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(Figure11)

Whichofthefollowinglaws/regulationsdoyou

complywith(orwillcomplywithwhenenacted)?

Interestingly,nearlyone-thirdofourrespondentsreportbeingincomplianceorplanningtocomplywiththeSEC’sproposedclimatedisclosurerule.16

74%ofourrespondentsidentifiedthemselvesasworkingatpubliccompaniesthatwillberequiredtocomplywhentheruleisformalizedandadopted.17Moreover,whileprivatecompaniesmaynotbepreparing10-Ks,theymaybeaskedbycustomersor

partnerstodiscloseemissionsdatarelatedtotheirsupplychainecosystemthatcouldpotentiallyhaveanimpactontheirbusiness.Overall,thesplitbetweencompliantandnon-compliantcompanieshighlightsanopportunityfororganizationsthataren’tyet

complianttoevolve.

16Question:Whichofthefollowinglaws/regulationsdoyoucomplywith(orwillcomplywithwhenenacted)?(selectallthatapply)

Base:161

AnswerOptions:CSRD;EUTaxonomy;ProposedSECclimatedisclosures;GermanSupplyChainDue

DiligenceAct;UKCompanies(StrategicReport)(Climate-RelatedFinancialDisclosure)Regulations2022;Noneoftheabove;Other(pleasespecify).

17Question:Isyourorganizationprivateorpublic?

Base:151.

AnswerOptions:Private;Public;Idon’tknow/cannotdisclose.

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Two-thirdsofoursurveyrespondentshavenotimplementedESGcontrols,

highlightingalowstateofmaturityinESGdatagovernance.18ThismayberelatedtothevastandconfusingspectrumofESG-settingstandardsandframeworksoutthere,aswellasthefactthatthereisnoformalESGcompliancerequirementintheUnited

Statesyet.However,theSECwillrequireanassurancefactorinduetime.Once

the

proposedclimatedisclosures

becomeformalized,publiccompanieswillberequiredtohaveESGcontrolsinplacetostreamlinetheprocessofobtainingthird-partyassuranceforcompliancewiththenewrules.

HaveyouimplementedanycontrolsforESG?(Figure12)

18Question:HaveyouimplementedanycontrolsforESG?

Base:152.

AnswerOptions:Yes,wehavedocumentedcontrols;Yes,andwehavestartedtestingcontrols;No,butwe

plantostartthisyear;No,andwedonotplantostartthisyear.

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DoyouperforminternalESGaudits?(Figure13)

However,therearesignsthatESGcontrolsprogramsarebeginningtorampup,basedonauditactivityamongthosesurveyed:

?60%oforganizationsdonotperforminternalESGaudits,but26%plantointhenextyear19—indicatingthatorganizationsintendtobuildouttheirESGassuranceefforts.

?ThemajorityofsurveyrespondentscollectevidenceforESGmetrics:34%collectevidenceforallESGmetrics,while42%collectforaportionoftheirESGmetrics.20DuetothedataassuranceprovisionsintheSEC’sproposedclimatedisclosurerule,wemaysoonseethesenumbersstarttoincreasewhentherulebecomesformalized.

Overall,asstakeholderdemandforESGcontinuestoincreaseandcompliance

requirementsbegintobecomemandatory,weexpecttoseemorecontrolsand

increasedassuranceeffortswillbeputintoplaceacrossmoreindustries.Naturally,

thiswillcontributetothedevelopmentofmorematurereportingpracticesandinfrastructuretosupportESGprograms.

19Question:DoyouperformESGaudits?

Base:152

AnswerOptions:Yes;No,butweplantostartthisyear;No,andwedonotplantostartthisyear.

20Question:Doyoucollectevidencetosupportyourdatametrics?

Base:152.

AnswerOptions:Yes;No,butweplantostartthisyear;No,andwedonotplantostartthisyear.

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PartTwo:FiveInitiativestoAdvanceYourESGMaturity

“Thebesttimetoplantatreewas20yearsago,thesecondbesttimeisnow.”

AstheESGlandscapecontinuestoevolve,itisessential