Governance, risk and compliance
What is sustainability governance?
Sustainability governance describes the management of sustainability across all aspects of an organisation, including employee capability, policies and procedures, organisational structure and technology.
Here’s how we can help
Develop codes of conduct and policies and procedures that meet stakeholder expectations and ensure that your organisation’s values are upheld and reinforced.
Win employee buy-in for your sustainability strategy with effective frameworks and approaches that outline risks and opportunities. This will facilitate understanding and engagement, leading to coherent communication and optimal employee participation.
Manage risks and ensure regulatory compliance so you’ll understand its impact on your company’s strategy and operations. We’ll examine sustainable development legal requirements, company policies and industry and/or voluntary codes to assess your compliance levels and identify areas for improvement.
Explore related case studies
- Multinational conglomerate
- Leading Malaysian telecommunications company
- Finance corporation
- Global forestry company
- Asian stock exchange regulator
Multinational conglomerate
Challenge: The client wanted PwC to conduct a sustainability risk assessment to enable them to develop strategies and mitigation steps to address their key sustainability risks.
Solution: We identified and prioritised key sustainability risks at both group and divisional levels, aided by a comparative analysis of sustainability risks faced by selected global companies.
Results: Our assessment revealed key priority areas that had previously received inadequate attention from the company. The assessment enabled the company to develop strategies and mitigations to address their key sustainability risks.
Leading Malaysian telecommunications company
Challenge: A leading Malaysian telecommunications company was tasked by their board to develop a corporate responsibility (CR) strategy and governance framework.
Solution: Our initial step involved benchmarking local and international telecommunications companies to identify the material focus areas and local requirements. Then, we engaged senior management and board members to gather their input on the proposed CR framework, reporting improvements and roadmap. We also conducted an awareness session on sustainability and effective reporting practices for relevant personnel within the organisation.
Results: The final report encapsulated key findings and a roadmap with immediate and long-term recommendations that can then be used by the client to produce a sustainability pull-out section in their forthcoming Annual Report.
Finance corporation
Challenge: The client sought a regional survey of financial institutions, regulators and supporting institutions to assess the effectiveness of their programmes aimed at introducing environmental and social (E&S) frameworks and management.
Solution: We conducted a regional survey of financial institutions, regulators and supporting institutions across three countries in Southeast Asia, performing market research and face-to-face interviews to evaluate the level of understanding and implementation of E&S issues within the financial sector.
Results: We delivered an in-depth summary of the current status of E&S understanding and maturity in the region, and also made recommendations to improve engagement with the sector and proposed the role the client could play in helping financial institutions to adopt more formal E&S principles and risk management procedures.
Global forestry company
Challenge: The client sought an inventory of their corporate responsibility (CR) initiatives for forestry operations, along with an assessment of their portfolio and management of the initiatives.
Solution: We inventoried the CR initiatives for forestry operations and conducted an assessment on the portfolio and management of the initiatives. This involved site visits and engagement with local officials, indigenous communities, employees, social philanthropists and wildlife specialists. We refined and developed performance measures and templates for CR reporting to stakeholders. We continued to work with the client to assess key stakeholder expectations, corporate strategy, the nature of their operations and CR trends in order to define the company’s CR strategy and processes.
Results: In the short term, we developed a CR framework to gather information on the costs and impact of their CR activities. We also developed process guidelines and measures to capture social and environmental performance. This framework lays the groundwork for employees to become more comfortable with CR management and reporting in the long term, helping the client develop an industry-leading CR strategy and optimise the CR portfolio for maximum impact.
Asian stock exchange regulator
Challenge: The client was seeking to integrate their ESG risk management into their existing enterprise risk management framework (ERMF) and to identify a method towards defining their overall ESG risk rating.
Solutions:
- Identified areas within the client’s current ERMF for enhancements to integrate ESG elements into their risk identification methodology
- Proposed strategies for integrating ESG risk assessment, mitigation and reporting into the ERMF
- Outlined a plan to integrate ESG risk management daily operations to ensure that the business operates in alignment with ESG responsibilities
- Assessed current risks and existing mitigating action plans for addressing and monitoring ESG risks to determine the need for ESG key risk indicators (KRIs)
- Identified appropriate data sources and collection methods for the identified ESG KRIs
- Derived appropriate thresholds and proposed risk owners for the purpose of monitoring ESG KRIs
- Proposed a reporting method for the monitoring and management of ESG risks
Results:
We supported the client in integrating ESG risk management into their existing ERMF and developed a list of applicable and aspirational ESG KRIs for monitoring. We also developed an ESG risk management guideline detailing the process for identifying relevant KRIs.
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