• Leadership in ESG is a noisy space and it can be hard to find out what is required.
• How ESG works in the real world: a company wants to create profit, without damaging the environment and governance provides a framework for achieving this.
• There are many examples of the impact of poor ESG, such as the BP oil spill 12 years ago where the effects on sea life are still being felt, and Rio Tinto where sacred land was destroyed by the mining company.
• But there are many opportunities in ESG and signs that things are moving in the right direction including:
  • The environment – in the case of the BP oil spill, it triggered R&D to understand the effect of such spills and how sea life can be preserved.
  • In society – in the case of Rio Tinto, managers are now encouraged to build relations with host communities where they plan to mine to understand the people and the land better.
  • In governance – many boards are now having conversations about ESG that they never had before and questioning whether they have a diverse perspective, if they have the right skills in this area and whether there is a good culture on the board?
• For leaders within ESG, you need to take a proactive approach. Answer the investors questions before they ask it. And know how to protect yourself from ESG risk.
• There are currently no standard practices for ESG, everything is in a trial phase. 
• No two companies have the same ESG related risks. ESG risks are based on your business model and each business model is different. 
• ESG is very different to CSR. CSR is loosely based on strategy where employees help within the community or partner with a local charity. ESG is closely linked to the organisation’s business strategy.
• When thinking about ESG and investing, the outlook for investors is changing from whether a company is bad or not to invest in, to looking at whether the net impact of the company is positive or negative.
• The ESG and data space is currently chaotic. Organisations need to know what data to collect but most don’t have the infrastructure in place to do this so beware of ESG scores.
• The best way to build an ESG focused practice is to:
  • Evaluate your business model.
  • Put policies and procedure in place.
  • Implement it with the executive team.
• A strong ESG practice starts with strong ESG leadership

1. Change the mindset.
2. Start with a purpose.  
3. Choose 1 or 2 things to prioritise. 
4. Mobilise people to create change.
5. Start small. 
6. As a business leader, take a hold of the story.

ESG impacts how your company performs, it impacts the planet, people and contributes to a better society. ESG is going to dominate business decisions for decades and organisations need leaders who can navigate this new paradigm to meet the emerging challenges. Rhea Albuquerque, ESG Lead at the Corporate Governance Institute, will be discussing the opportunities that exist when you take care of ESG, what is holding the sector back, why ESG needs to be on your board agenda and how to stay relevant as you navigate this changing world.

Rhea Albuquerque is ESG Lead and Head of Product Development at the Corporate Governance Institute with a strong background working with multinationals and start ups. Along with developing, writing and delivering content for ESG related courses and thought leadership articles for the institute, Rhea also regularly speaks on ESG topics. At its most fundamental, Rhea wants organisations to be clear about why they need to engage with ESG now. When they do, she says, there will be a multitude of opportunities for both the business and society.