Transition from EHS

Manager to ESG
Manager

Contact
Mo- 8057921557
Mo- 9997092916

Ecoverix Solutions Pvt. Ltd.

www.ecoverix.com
E-mail-
[email protected]
[email protected]
The transition from HSE (Health, Safety, and Environment) Manager to ESG (Environmental, Social,
and Governance) Manager is a natural career progression, as both roles share common ground in
environmental stewardship, workplace safety, and regulatory compliance. However, ESG management
extends beyond HSE by incorporating social responsibility, corporate governance, and sustainability
strategy.
Steps for an HSE Manager to Become an ESG Manager
1. Expand Knowledge Beyond HSE
• HSE primarily focuses on occupational safety, environmental compliance, and health
regulations, while ESG includes broader sustainability reporting, social impact, and corporate
governance.
• Learn about climate change policies, sustainability frameworks (e.g., GRI, SASB, TCFD), social
responsibility, and ethical business practices.
2. Gain Expertise in ESG Frameworks & Standards
• Familiarize yourself with global ESG reporting standards, such as:
o GRI (Global Reporting Initiative) – Sustainability and impact reporting.
o SASB (Sustainability Accounting Standards Board) – Industry-specific ESG disclosures.
o TCFD (Task Force on Climate-Related Financial Disclosures) – Climate risk reporting.
o ISO 14064 – Greenhouse Gas (GHG) emissions and carbon footprint management.
o BRSR (Business Responsibility & Sustainability Reporting, India) – ESG compliance for
Indian companies.
3. Develop Skills in ESG Data Collection & Reporting
• Learn about carbon footprint measurement, waste reduction, energy efficiency, and ESG data
management tools.
• Understand materiality assessment—how to identify and report on the most significant ESG risks
and opportunities.
• Work with ESG software or platforms used for sustainability data collection.
4. Strengthen Social & Governance Knowledge
• While HSE covers environmental aspects, ESG includes social and governance factors:
o Social: Diversity, equity & inclusion (DEI), labour rights, community engagement.
o Governance: Ethical leadership, anti-corruption policies, corporate transparency.
5. Get ESG Certifications & Training
• Consider professional certifications to strengthen your ESG credentials:
o GRI Certified Sustainability Professional
o LEED (Leadership in Energy and Environmental Design) Certification (if working in
green buildings)
o Sustainability & ESG-related courses (like the course Ecoverix is developing!)

6. Take on ESG-Related Projects in Your Current Role

• Engage in carbon footprint reduction, sustainability initiatives, or diversity & inclusion
programs in your organization.
• Participate in corporate sustainability reporting and work with investor relations or CSR teams.
• Collaborate with procurement on sustainable supply chain management.
7. Network with ESG Professionals
• Join ESG groups on LinkedIn, industry associations, and sustainability conferences.
• Connect with corporate sustainability leaders, ESG consultants, and investors.

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ESG Foundations & Global Frameworks

Week 1: Introduction to ESG & Sustainability

• What is ESG? Importance in business & investment

What is ESG?
ESG stands for Environmental, Social, and Governance, which are
three critical factors used to evaluate the sustainability and ethical
impact of a business or investment.
1. Environmental (E): Focuses on how a company impacts the
environment, including carbon footprint, waste management,
resource consumption, and climate change initiatives.
2. Social (S): Covers a company's relationships with employees,
customers, communities, and stakeholders, including labor practices,
diversity & inclusion, human rights, and social responsibility.
3. Governance (G): Refers to internal policies, leadership, board
structure, ethics, compliance, and transparency in decision-making
and risk management.
Importance of ESG in Business & Investment
For Businesses:
• Risk Management: Helps companies identify and mitigate
environmental and social risks that could impact operations.
• Regulatory Compliance: Many governments and industry bodies
now require ESG disclosures.
• Brand Reputation & Customer Trust: Consumers prefer businesses
that demonstrate social responsibility and sustainability.
• Operational Efficiency: Energy conservation, waste reduction, and
ethical practices lead to cost savings and long-term profitability.
• Talent Attraction & Retention: Employees prefer to work for
organizations that value diversity, inclusion, and ethical business
practices.
For Investors:

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 • Sustainable Growth: ESG-aligned companies tend to have lower
risks and long-term stability.
• Risk Mitigation: Helps investors avoid businesses with poor
environmental or governance practices that could lead to scandals or
financial losses.
• Higher Returns: Studies suggest that companies with strong ESG
performance often outperform competitors in the long run.
• Regulatory & Market Demand: Growing ESG regulations and
investor preferences make ESG investments more attractive.
• Difference between ESG & CSR
• Both ESG (Environmental, Social, and Governance) and CSR
(Corporate Social Responsibility) focus on sustainability and ethical
business practices, but they differ in approach, measurement, and
purpose

ESG (Environmental, CSR (Corporate Social

Aspect
Social, and Governance) Responsibility)
A structured framework
A company's voluntary
with measurable criteria
initiatives to contribute to
Definition for assessing a company's
social, environmental, and
sustainability and ethical
ethical causes.
impact.
Integrates environmental,
social, and governance Focuses on philanthropic
Focus factors into business and ethical responsibilities
strategy and investment beyond profit-making.
decisions.
Quantifiable through ESG
Largely qualitative and
ratings, sustainability
Measurement voluntary, often lacking
reports, and regulatory
standardized reporting.
disclosures.
Often mandatory or
Regulatory highly encouraged by Primarily voluntary with
Compliance investors, governments, minimal legal requirements.
and financial markets.

PAGE 4
 A key factor in investment
More about goodwill and
Investor decisions, helping
brand perception rather than
Perspective investors assess risks and
investment analysis.
long-term sustainability.
Embedded into core Often operates separately as
Business business strategy, a company’s community
Integration operations, and risk engagement or charity
management. efforts.
Carbon footprint
Charitable donations,
reduction, sustainable
Example community service
supply chains, board
Initiatives programs, employee
diversity, anti-corruption
volunteering.
policies.

• ESG is data-driven and investment-focused, whereas CSR is more

about voluntary ethical responsibility.
• ESG is integrated into business strategy and risk management, while
CSR is often seen as external goodwill.
• Regulators, investors, and markets demand ESG compliance,
whereas CSR remains largely voluntary.

In short, CSR is about “doing good,” while ESG is about “being

sustainable and accountable” with measurable results.

Regulatory landscape: SEBI BRSR, EU CSRD, SEC climate

disclosure
Regulatory Landscape of ESG Reporting
Governments and regulatory bodies worldwide are enforcing ESG
reporting frameworks to ensure transparency, accountability, and
sustainability in corporate operations. Key regulations include:

1. SEBI BRSR (Business Responsibility and Sustainability Reporting) –

India
Overview:
• Introduced by the Securities and Exchange Board of India (SEBI).

• Applicable from FY 2022-23 for the top 1,000 listed companies by

market capitalization.
• Mandatory for large companies; voluntary for others.

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Key Requirements:
• Companies must disclose ESG-related data across three sections:

1. General Disclosures – Business details, ownership, and supply

chain.
2. Management and Process – ESG governance structure, policies,
and oversight.
3. Principle-based Performance Indicators – Metrics aligned with
India’s 9 ESG Principles (from the National Guidelines on
Responsible Business Conduct, NGRBC).

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Impact:
• Enhances corporate transparency in ESG factors.

• Helps investors assess sustainability risks and opportunities.

• Encourages corporate accountability in environmental and social
governance.

2. EU CSRD (Corporate Sustainability Reporting Directive) – European

Union
Overview:
• Adopted in January 2023, replacing the Non-Financial Reporting
Directive (NFRD).
• Expands ESG disclosure obligations to 50,000+ companies operating
in the EU.
• Mandatory from 2024 onwards, phased over multiple years.
Key Requirements:
• Companies must align with the European Sustainability Reporting
Standards (ESRS).
• Covers double materiality, meaning both:
o How sustainability issues affect the company’s financial
position.
o How the company’s activities impact the environment and
society.
• Requires third-party assurance (audit) of sustainability reports.
• Applies to:
o Large companies (meeting 2 out of 3: €40M turnover, €20M
assets, 250+ employees).
o EU-listed SMEs.
o Non-EU companies with significant EU operations (€150M+
revenue in the EU).

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Impact:
• Standardized ESG disclosures across the EU.

• Increases investor confidence with reliable sustainability data.

• Drives global sustainability efforts, affecting non-EU companies
doing business in Europe.

3. SEC Climate Disclosure Rule – USA

Overview:
• Proposed by the U.S. Securities and Exchange Commission (SEC) in
March 2022.
• Aims to mandate climate-related risk disclosures for publicly traded
companies in the U.S.
• Final rule expected in 2024 (subject to legal and industry discussions).
Key Requirements:
• Companies must disclose climate-related financial risks in their SEC
filings.
• Scope 1 & 2 emissions (direct and indirect emissions from operations)
mandatory.
• Scope 3 emissions (from supply chain & product use) required if
material.
• Requires disclosure on:
o Governance of climate risks.
o Business impact of climate risks.
o Emissions reduction targets & transition plans.
Impact:
• Standardizes climate risk reporting for U.S. companies.

• Enables investors to assess financial risks from climate change.

• Pushes companies to improve carbon management and resilience
planning.

PAGE 8
 • Sustainability & corporate strategy

Regulation Region Scope Applicability Key Focus

Business
Top 1,000
SEBI ESG responsibility
India listed
BRSR Reporting &
companies
sustainability
Large
companies,
ESG & Sustainability
European SMEs, Non-
EU CSRD Double risks &
Union EU firms
Materiality impact
with EU
operations
Carbon
SEC Publicly
Climate emissions &
Climate USA listed
Risks financial
Disclosure companies
risks

Week 2: ESG Standards & Reporting Frameworks

• Overview of GRI, SASB, TCFD, ISSB, and Integrated Reporting

ESG Reporting through GRI (Global Reporting Initiative)

1. What is GRI?
The Global Reporting Initiative (GRI) is the most widely used
sustainability reporting framework that helps organizations disclose
their economic, environmental, and social impacts.
• Established in 1997 to enhance corporate transparency.
• Used by 10,000+ organizations worldwide for ESG reporting.
• Aligns with global regulations like EU CSRD, SEBI BRSR, and SEC
Climate Disclosure.

2. Key Features of GRI Reporting

✔ Global Standard: Applicable to businesses of all sizes and
industries.
✔ Stakeholder-Oriented: Focuses on the impacts on society and the

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 environment.
✔ Materiality-Based: Emphasizes topics most relevant to
stakeholders.
✔ Interoperability: Aligns with other ESG frameworks (TCFD, SASB,
SDGs, etc.).

3. GRI Standards Structure

GRI uses a modular structure with three main categories:

1️. GRI Universal Standards (Foundation, General, Material Topics)
Applicable to all organizations.
GRI 1: Foundation – Core principles, reporting rules.
GRI 2: General Disclosures – Governance, ethics, stakeholder
engagement.
GRI 3: Material Topics – Identifying and managing key ESG
issues.
2️. GRI Sector Standards
Industry-specific guidelines (e.g., oil & gas, financial services,
agriculture).
3️. GRI Topic Standards
Detailed metrics for reporting on Environmental, Social, and
Governance aspects.
Examples:
• GRI 302 – Energy: Energy consumption, efficiency improvements.
• GRI 305 – Emissions: Carbon footprint, GHG reduction targets.
• GRI 401 – Employment: Labor practices, working conditions.
• GRI 419 – Socioeconomic Compliance: Legal & regulatory
compliance.

4. Steps for ESG Reporting Using GRI

Step 1: Prepare & Engage Stakeholders
Define objectives of ESG reporting.
Identify key stakeholders (investors, customers, employees,
regulators).
Step 2: Conduct Materiality Assessment

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 Identify ESG topics that impact business & stakeholders.
Use GRI 3 to prioritize material topics.
Step 3: Data Collection & Performance Measurement
Gather qualitative & quantitative data on material topics.
Use GRI indicators for measuring impacts.
Step 4: Report Development & Disclosure
Follow the GRI Universal & Topic Standards.
Structure report with governance, environment, and social
disclosures.
Ensure compliance with regulations (CSRD, SEBI BRSR, etc.).
Step 5: Assurance & Verification
Seek third-party assurance for credibility.
Cross-check alignment with ESG frameworks (TCFD, SDGs,
etc.).

5. Benefits of ESG Reporting Using GRI

✔ Enhanced Transparency: Builds trust with investors, customers,
and regulators.
✔ Regulatory Compliance: Aligns with global ESG laws (EU CSRD,
SEBI BRSR, etc.).
✔ Risk Management: Identifies and mitigates sustainability risks.
✔ Investor Confidence: Attracts ESG-focused investments.
✔ Competitive Advantage: Improves brand reputation &
stakeholder engagement.
Overview of ESG Reporting Frameworks other than GRI
Companies use various frameworks to disclose Environmental,
Social, and Governance (ESG) performance. The key global
frameworks include:
• SASB (Sustainability Accounting Standards Board)
• TCFD (Task Force on Climate-related Financial Disclosures)
• ISSB (International Sustainability Standards Board)
• Integrated Reporting (IR) Framework

PAGE 11
 1. SASB (Sustainability Accounting Standards Board)
Overview:
• Founded in 2011; now part of ISSB (since 2022).
• Provides industry-specific sustainability accounting standards.
• Focuses on financial materiality—i.e., ESG factors that impact a
company’s financial performance.
Key Features:
✔ Industry-Specific: Covers 77 industries (e.g., pharma, energy,
tech, banking).
✔ Investor-Oriented: Helps investors assess financial ESG risks.
✔ Aligned with Financial Reporting: Works with GAAP & IFRS
standards.
Example Metrics (for Pharma Industry):
Environmental: Energy use, hazardous waste disposal.
Social: Drug safety, clinical trial ethics.
Governance: Pricing transparency, regulatory compliance.
Use Cases:
Helps companies disclose ESG risks in financial reports (e.g., 10-
K filings).
Used by investors for ESG risk analysis.
Supports mergers, acquisitions, and investment decisions.

2. TCFD (Task Force on Climate-related Financial Disclosures)

Overview:
• Established by G2️0’s Financial Stability Board (FSB) in 2️01️5.
• Focuses on climate-related financial risks.
• Recommended for banks, insurers, and public companies.
Key Features:
✔ Climate-Focused: Addresses physical risks (floods, fires, etc.) &
transition risks (policy changes, carbon taxes).
✔ Forward-Looking: Encourages scenario analysis for future risks.
✔ Adopted in Global Regulations: Forms the basis of SEC Climate
Disclosure & ISSB standards.
TCFD’s 4 Pillars of Climate Disclosure:

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 1. Governance – Climate risk oversight by leadership.
2. Strategy – Impact of climate risks on business strategy.
3. Risk Management – Processes for managing climate risks.
4. Metrics & Targets – Emissions (Scope 1, 2, 3), net-zero
commitments.

Use Cases:
Mandatory in UK, EU, Japan, New Zealand, Singapore.
Helps banks, investors, and insurance companies assess climate
risks.
Supports transition planning for net-zero commitments.

3. ISSB (International Sustainability Standards Board)

Overview:
• Established in 2021 by IFRS Foundation.
• Aims to standardize ESG reporting globally.
• Consolidates SASB, TCFD, and other ESG frameworks.
Key Features:
✔ Financially Material ESG Reporting: Focuses on impact on
company value.
✔ Climate-First Approach: ISSB’s IFRS S2 standard aligns with
TCFD.
✔ Replaces Multiple Frameworks: Expected to be the global
standard for ESG disclosures.
Key ISSB Standards:
IFRS S1 – General sustainability disclosure framework.
IFRS S2 – Climate-related disclosures (aligned with TCFD).
Use Cases:
Supported by G7, G20, and IOSCO (global securities
regulators).
Helps companies align with global investor expectations.
Provides consistent, comparable ESG data across industries.

4. Integrated Reporting (IR Framework)

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 Overview:
• Developed by IIRC (International Integrated Reporting Council) in
2013.
• Focuses on how ESG and financial factors create value over time.
• Merged with SASB in 2021, now under ISSB.
Key Features:
✔ Holistic Approach: Combines financial + ESG reporting.
✔ Value Creation Focus: Emphasizes long-term business impact.
✔ 6 Capitals Model: Reports on Financial, Manufactured,
Intellectual, Human, Social, and Natural Capital.
Use Cases:
Used by large corporates & sustainability-driven businesses.
Helps executives communicate long-term business value.
Complements GRI, SASB, and IFRS reporting.

Framework Focus Area Key Differentiator

Comprehensive Stakeholder-focused, impact-

GRI
ESG reporting driven

Financially
Investor-focused, industry-
SASB material ESG
specific
data
Climate-related
TCFD Financial impact of climate risks
risks
Carbon &
Environmental performance
CDP water
focus
disclosures

IR Financial &
Business value creation
(Integrated ESG
perspective
Reporting) integration

PAGE 14
• Understanding Materiality & Stakeholder Engagement
Understanding Materiality & Stakeholder Engagement in ESG
Reporting
Materiality and stakeholder engagement are critical pillars of ESG
(Environmental, Social, and Governance) reporting. They help
businesses identify relevant sustainability issues and ensure
reporting aligns with the expectations of investors, regulators, and
other key stakeholders.
1. What is Materiality in ESG?
Materiality refers to the significance of ESG issues in influencing a
company’s financial performance and stakeholder decision-making.

Types of Materiality:
Financial Materiality – ESG factors that impact a company’s
financial performance. (Used in SASB, ISSB, SEC disclosures)

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 Impact Materiality – How a company’s operations affect people,
society, and the environment. (Used in GRI, EU CSRD)
Double Materiality – Combines financial + impact materiality.
(Required under EU CSRD)
Example:
• Financial Materiality: Climate risks affecting revenues (e.g., carbon
tax regulations).
• Impact Materiality: Business activities contributing to deforestation.
• Double Materiality: Carbon emissions harming the environment and
leading to financial risks.

Materiality Assessment Process:

Step 1: Identify potential ESG topics (climate risks, human rights,
governance, etc.).
Step 2: Engage stakeholders (investors, employees, regulators) to
determine relevance.
Step 3: Conduct a Materiality Matrix Analysis (plot ESG topics
based on impact level).
Step 4: Prioritize high-impact, high-relevance issues for ESG
strategy.
Example: Materiality Matrix
• X-Axis: Importance to Business Success
• Y-Axis: Importance to Stakeholders
Issues in the top-right quadrant are most material and should be
reported.

2. What is Stakeholder Engagement in ESG?

Stakeholder engagement is the process of identifying,
communicating, and collaborating with stakeholders to address ESG
concerns and opportunities.
Who Are the Key Stakeholders?
✔ Investors – Want ESG data for risk assessment.
✔ Regulators & Governments – Set sustainability disclosure
requirements.
✔ Customers – Prefer eco-friendly & ethical brands.

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✔ Employees – Demand better working conditions & corporate
responsibility.
✔ NGOs & Communities – Monitor environmental & social impact.
Stakeholder Engagement Strategies:
Surveys & Interviews – Gather insights from employees,
customers, investors.
Roundtables & Public Consultations – Discuss ESG issues
openly.
ESG Committees & Advisory Panels – Ensure continuous
stakeholder input.
Partnerships & Collaborations – Work with NGOs & industry
groups for ESG initiatives.
Example: A company in the energy sector engaging with local
communities to address concerns about emissions and renewable
energy investments.
3. Why Materiality & Stakeholder Engagement Matter?
✔ Regulatory Compliance – Meets disclosure requirements (EU
CSRD, SEBI BRSR, ISSB).
✔ Risk Management – Identifies ESG risks before they affect the
business.
✔ Investor Confidence – Aligns with shareholder expectations on
sustainability.
✔ Brand Reputation & Trust – Strengthens stakeholder
relationships.

ESG Scorecards & Ratings (MSCI, Sustainalytics, S&P Global)

ESG Scorecards & Ratings: MSCI, Sustainalytics, S&P Global
ESG Scorecards & Ratings measure a company's Environmental,
Social, and Governance (ESG) performance, helping investors,
regulators, and stakeholders assess sustainability risks and
opportunities. The three major ESG rating agencies—MSCI,
Sustainalytics, and S&P Global—use different methodologies to
evaluate companies.

1️. MSCI ESG Ratings

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 Methodology: Industry-relative risk assessment
Scoring: AAA (Leader) to CCC (Laggard)
Focus Areas:
• Governance structures
• Climate risk management
• Social responsibility & labor practices
Why it matters: MSCI’s ratings help investors understand long-term
ESG risks and resilience within an industry context.

2️. Sustainalytics ESG Risk Ratings (by Morningstar)

Methodology: Measures unmanaged ESG risks

Scoring: Risk scale from Negligible (0-10) to Severe (40+)
Focus Areas:
• Exposure to ESG risks
• Management’s ability to mitigate risks
• Controversy monitoring
Why it matters: Investors use Sustainalytics to evaluate how exposed
a company is to ESG risks that might impact financial performance.
3️ S&P Global ESG Scores (DJSI - Dow Jones Sustainability Index)
Methodology: Data from corporate disclosures & public sources
Scoring: 0-100 scale, with industry benchmarks
Focus Areas:
• Financial materiality of ESG factors
• Transparency & reporting quality
• Long-term value creation
Why it matters: S&P Global’s ESG Scores influence Dow Jones
Sustainability Index (DJSI) inclusion, which is a benchmark for
sustainability leaders.

PAGE 18
 Key Takeaways

✔ No universal ESG rating—each agency has a different

methodology
✔ Companies may receive varying scores across agencies
✔ Investors & stakeholders use these ratings to guide decision-
making
✔ Proactive ESG strategies help companies improve their ratings
and access better financing & investor confidence

• Practical Exercise: ESG Materiality Assessment

This hands-on exercise will help candidates to understand how ESG
Materiality Assessment conduct to identify the most relevant
sustainability issues for its business and stakeholders. Connect with
Ecoverix Solutions Pvt Ltd ( [email protected]) for Practical
Exercise and detailed Course

Week 3: Environmental Sustainability & Climate Risk

• Carbon Footprint, GHG Protocol (Scope 1, 2, 3)

• 1. What is Carbon Footprint?

• A carbon footprint is the total amount of greenhouse gases (GHGs)
emitted directly or indirectly by an individual, organization, product,
or event. It is usually expressed in carbon dioxide equivalent (CO₂e)
to standardize the impact of different greenhouse gases based on
their global warming potential (GWP).
• The carbon footprint accounts for all major greenhouse gases
regulated under the Kyoto Protocol, including:
• Carbon dioxide (CO₂)
• Methane (CH₄)
• Nitrous oxide (N₂O)
• Fluorinated gases (HFCs, PFCs, SF₆, NF₃)
2. What is the GHG Protocol?

PAGE 19
• The Greenhouse Gas (GHG) Protocol is the most widely used
international accounting standard for measuring and managing
greenhouse gas emissions. It was developed by the World Resources
Institute (WRI) and the World Business Council for Sustainable
Development (WBCSD).
• The GHG Protocol categorizes emissions into three scopes to help
businesses and organizations measure and reduce their carbon
footprint effectively.
Scope 1, Scope 2, and Scope 3 Emissions
• Scope 1: Direct Emissions (Owned & Controlled Sources)
• Scope 1 includes direct emissions from sources owned or controlled
by an organization. These are emissions released on-site due to
company operations.

• Examples of Scope 1 Emissions:

• Fuel combustion in company-owned vehicles (e.g., petrol, diesel,
CNG)
• On-site energy generation (e.g., coal or gas-based power plants)
• Industrial processes (e.g., cement manufacturing, steel production)
• Fugitive emissions (e.g., refrigerant leaks, methane from pipelines)

• Mitigation Strategies for Scope 1:

• Shift to electric vehicles (EVs) or biofuels
• Improve energy efficiency in industrial processes
• Use low-GWP refrigerants to prevent leaks

Scope 2: Indirect Emissions (Purchased Energy)

• Scope 2 includes indirect emissions from the generation of
purchased electricity, steam, heating, and cooling consumed by the
company. While the organization does not directly emit these gases,

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 it is responsible for the energy consumption that drives emissions
from power plants.

• Examples of Scope 2 Emissions:

• Electricity consumption in offices, factories, or data centers
• Purchased heating or cooling from external providers

• Mitigation Strategies for Scope 2:

• Shift to renewable energy (solar, wind, hydro)
• Implement energy efficiency measures (LED lighting, smart HVAC
systems)
• Purchase Renewable Energy Certificates (RECs) or Carbon Offsets

Scope 3: Other Indirect Emissions (Value Chain)

• Scope 3 emissions include all other indirect emissions that occur in a
company’s value chain but are not owned or directly controlled by
the company. These emissions are often the largest and hardest to
control.
• Scope 3 is divided into 15 categories under two main segments:
• Upstream Emissions (related to purchased goods/services)
• Downstream Emissions (related to product use & disposal)

• Examples of Scope 3 Emissions:

• Upstream (Before Company Operations)

• Purchased goods & services (raw materials, packaging)
• Capital goods (buildings, machinery, equipment)
• Transportation & distribution (shipping raw materials, third-party
logistics)
• Employee commuting & business travel (flights, taxis, remote work)

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• Waste generation (waste disposal, landfill emissions)

• Downstream (After Company Operations)

• Transportation & distribution (product deliveries to customers)
• Use of sold products (emissions from fuel-consuming products like
vehicles, appliances)
• End-of-life treatment of products (recycling, landfill, waste
processing)

• Mitigation Strategies for Scope 3:

• Engage with suppliers to reduce emissions (supply chain
decarbonization)
• Encourage sustainable transportation and telecommuting for
employees
• Design eco-friendly products with longer lifespans and recyclability
• Implement circular economy strategies (reuse, recycling, waste
reduction)
4. Why Measure and Reduce Carbon Footprint?
• Regulatory Compliance (EU Carbon Border Tax, SEBI BRSR,
TCFD, etc.)

• Cost Reduction (Energy efficiency, fuel savings)

• Competitive Advantage (ESG compliance, carbon-neutral goals)

• Investor & Customer Demand (Sustainability-linked

investments)
5. Carbon Footprint Calculation & Reporting
• Reporting Standards:
• GHG Protocol Corporate Standard (for businesses)
• ISO 14064 (for carbon footprint verification)
• GRI Standards (for ESG reporting)
• CDP (Carbon Disclosure Project) (for investor transparency)

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 • Carbon Accounting Methods:
• Activity-Based Approach (data on fuel consumption, kWh used, etc.)
• Spend-Based Approach (emissions per dollar spent on
goods/services)
Key Takeaways
• 1 Scope 1 → Direct emissions from owned sources (e.g., fuel,
industrial processes)
2 Scope 2 → Indirect emissions from purchased energy (e.g.,
electricity, heating)
3 Scope 3 → Indirect emissions across the value chain (e.g., supply
chain, product use)

• Reducing carbon footprint is key to achieving Net-Zero goals!

Companies must track, reduce, and report emissions for a sustainable
future.
Net Zero Strategies & Science-Based Targets (SBTi)
1. What is Net Zero?
Net Zero refers to achieving a balance between the greenhouse gas
(GHG) emissions produced and the amount removed from the
atmosphere. In simple terms:
Net Zero = Total Emissions Produced - Total Emissions Removed = 0
Achieving Net Zero means an organization, country, or individual
eliminates or offsets emissions to ensure no additional carbon is
added to the atmosphere.
2. Why is Net Zero Important?
• Climate Change Mitigation: Reduces global warming and meets
the Paris Agreement goal of limiting temperature rise to 1.5°C above
pre-industrial levels.

• Corporate Sustainability: Enhances brand reputation, attracts

investors, and meets ESG (Environmental, Social, and Governance)
compliance requirements.

• Regulatory Compliance: Governments and regulatory bodies

worldwide are making Net Zero commitments mandatory.

PAGE 23
 3. Net Zero Strategies for Organizations
To achieve Net Zero, companies must adopt a structured approach
involving emission reductions, operational efficiency, and carbon
removals. The key strategies include:
Step 1: Measure and Report Emissions
• Conduct a Carbon Footprint Assessment based on the GHG
Protocol (Scope 1, 2, 3).
• Use global standards like ISO 14064 and CDP (Carbon Disclosure
Project) for accurate reporting.
• Implement Life Cycle Assessment (LCA) for product and supply
chain emissions.

Step 2: Reduce Emissions (Decarbonization)

The primary focus of Net Zero is to reduce emissions at the source
rather than relying on offsets.
Key Emission Reduction Strategies:
1. Energy Transition: Shift to 100% renewable energy (solar, wind,
hydro).
2. Electrification: Replace fossil fuel-based processes with electric
alternatives.
3. Energy Efficiency: Optimize manufacturing, HVAC, and lighting
systems.
4. Sustainable Transport: Transition to electric vehicles (EVs) and low-
carbon logistics.
5. Supply Chain Decarbonization: Collaborate with vendors to use
low-carbon materials.
6. Circular Economy & Waste Reduction: Implement recycling, reuse,
and waste-to-energy programs.

Step 3: Carbon Removal & Offsetting

Once emissions are minimized, residual emissions must be removed
from the atmosphere using natural or technological solutions.
Carbon Removal Strategies:
• Nature-based Solutions: Reforestation, afforestation, soil carbon
sequestration.

PAGE 24
• Technology-based Solutions: Carbon Capture and Storage (CCS),
Direct Air Capture (DAC).
• Verified Carbon Offsets: Purchase credits from certified carbon
offset projects (e.g., renewable energy, afforestation).

Step 4: Set Science-Based Targets (SBTi) for Net Zero

Organizations should set emission reduction targets aligned with
Science-Based Targets initiative (SBTi), ensuring they follow a
validated and science-backed pathway to Net Zero.

4. What is the Science-Based Targets Initiative (SBTi)?

The Science-Based Targets initiative (SBTi) is a global framework
that helps companies set GHG emission reduction targets aligned
with climate science. SBTi ensures that corporate targets are aligned
with the Paris Agreement’s 1️.5°C goal.
Key Components of SBTi
1. Near-term Targets (5-10 years)
• Companies must reduce emissions by at least 50% by 2030.
• Targets cover Scope 1, Scope 2, and relevant Scope 3 emissions.

2. Long-term Net Zero Targets (By 2050)

• At least 90% absolute reduction in emissions by 2050.
• Only 10% of emissions can be neutralized using carbon removal.

3. Sector-Specific Guidance
• SBTi provides customized guidelines for different industries (e.g.,
Energy, Pharma, Manufacturing).
How to Set SBTi Targets?
Step 1: Commit – Companies sign the SBTi commitment letter.
Step 2: Develop Targets – Define science-based emissions
reduction goals.
Step 3: Submit for Validation – SBTi reviews and validates the
targets.
Step 4: Implement & Report – Regularly track progress and
report annually.
SBTi Target Classification

PAGE 25
 1. 1.5°C Aligned Target (Most ambitious, full decarbonization by
2050)
2. Well-Below 2°C Target (Moderate ambition, slower emission
reduction pace)
3. 2°C Target (Least ambitious, phased reduction but not aligned
with 1.5°C)

Feature Net Zero Carbon Neutrality

Reduce emissions to near

Balance emissions by
Definition zero & remove residual
purchasing carbon credits
CO₂

Primary Reduction at source +

Carbon offsets
Focus Carbon removal
Target Year 2050 (as per SBTi) Can be achieved yearly
Regulatory SBTi, GHG Protocol, ISO Voluntary but may be used
Compliance 14064 for branding
Apple, Microsoft, Companies buying carbon
Example
Unilever’s Net Zero Goals offsets for branding

6. Key Benefits of Net Zero & SBTi Targets

Regulatory Compliance – Helps organizations align with ESG
frameworks like SEBI BRSR, EU CBAM, TCFD, ISO 14064.
Investor Confidence – Demonstrates a science-backed approach
to sustainability, attracting ESG investors.
Operational Cost Savings – Reducing energy use & transitioning
to renewables cuts long-term costs.
Competitive Advantage – Enhances corporate reputation, meets
customer demand for sustainable products.
8. Final Takeaways
Net Zero → Requires deep emission cuts + carbon removal,
aligned with SBTi.
SBTi Targets → Provide a structured science-backed roadmap to
achieve Net Zero.

PAGE 26
 Organizations Must Act Now → 2030 & 2050 targets require
urgent decarbonization strategies.
Would you like assistance with SBTi target setting, Net Zero
strategy planning, or GHG inventory calculation please connect
with Ecoverix Solutions Pvt Ltd

• Circular Economy & Sustainable Resource Management

• 1. What is a Circular Economy?
• A circular economy is an economic model designed to minimize
waste and maximize resource efficiency by keeping materials,
products, and resources in use for as long as possible. Unlike the
traditional linear economy (take-make-dispose), a circular economy
follows the principles of regeneration, reuse, and recycling to create
a more sustainable system.

Linear Economy
Circular Economy (Sustainable)
(Traditional)
Take → Make → Use → Design → Use → Reuse → Recycle →
Dispose Regenerate
High resource consumption Minimal resource waste
Single-use products Extended product life cycle
Generates pollution &
Reduces environmental footprint
landfill waste
Relies on virgin materials Uses recycled & renewable materials

2. Key Principles of a Circular Economy

The circular economy operates on three fundamental principles outlined
by the Ellen MacArthur Foundation:
1. Design Out Waste and Pollution
• Products and processes should be designed to minimize waste
generation.
• Reduce reliance on hazardous substances and difficult-to-recycle
materials.

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 • Example: Eco-friendly packaging, biodegradable plastics, zero-waste
manufacturing.

2. Keep Products and Materials in Use

• Repair, refurbish, reuse, and remanufacture to extend product life.

• Design for modular assembly and easy disassembly.

• Example: Leasing models for electronics, refurbished smartphones,
car sharing services.

3. Regenerate Natural Systems

• Return valuable nutrients to the environment and restore
biodiversity.
• Shift from finite (fossil-based) to renewable resources.
• Example: Regenerative agriculture, composting, sustainable forestry.

3. Key Strategies for Implementing a Circular Economy

1. Sustainable Product Design
• Use recyclable, biodegradable, or renewable materials.

• Design for disassembly so that products can be easily repaired or

upgraded.
• Reduce material use and avoid toxic substances in production.
Example:
Fairphone – A modular smartphone that allows easy repair and
upgrade to extend its lifespan.
2. Waste-to-Resource (Upcycling & Recycling)
• Upcycling: Transform waste into higher-value products.

• Recycling: Convert waste materials into new, usable products to

avoid landfill.
Example:
Nike’s "Move to Zero" Initiative – Uses recycled materials in shoes and
apparel to reduce environmental impact.
3. Product-as-a-Service (PaaS) Business Model

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 • Instead of selling products, companies offer services where
customers pay for use rather than ownership.
• Encourages reuse, longevity, and circular supply chains.
Example:
VeoRide & Swapfiets – Bicycle subscription services where users pay
for access rather than ownership, ensuring reuse.

4. Circular Supply Chains

• Shift from linear supply chains (raw material extraction →
production → disposal) to closed-loop systems where materials
continuously cycle through the economy.
• Implement reverse logistics to collect, refurbish, and recycle end-of-
life products.
Example:
Dell Technologies – Uses closed-loop supply chains to recover and
reuse materials from old computers.
5. Renewable Energy Integration
• A circular economy relies on clean energy sources to reduce
dependency on fossil fuels.
• Companies should transition to solar, wind, and hydroelectric
energy in manufacturing and operations.
Example:
Apple – Uses 100% renewable energy in its data centers and
manufacturing facilities.

4. Sustainable Resource Management

Sustainable resource management is the practice of using natural
resources efficiently while ensuring their availability for future
generations. It is closely linked to the circular economy.
Key Aspects of Sustainable Resource Management:
1. Water Resource Management
• Reduce water consumption in industrial processes.

PAGE 29
 • Implement wastewater treatment & rainwater harvesting.
• Use circular water systems to recycle and reuse water.
Example:
Nestlé – Uses water circularity strategies in its factories to achieve zero
wastewater discharge.
2. Sustainable Material Sourcing
• Use materials that are renewable, recyclable, or responsibly
sourced.
• Avoid depletion of non-renewable resources such as fossil fuels and
rare minerals.
Example:
LEGO – Introduced bio-based plastic bricks made from sugarcane
instead of petroleum-based plastics.
3. Industrial Symbiosis
• Companies collaborate to use each other’s waste as raw materials.

• Creates a closed-loop system where waste from one industry

becomes input for another.
Example:
Kalundborg Industrial Park (Denmark) – A real-world example where
multiple industries share energy, water, and byproducts, reducing waste
and costs.
4. Sustainable Packaging
• Shift from single-use plastics to biodegradable, compostable, or
reusable packaging.
• Implement minimalist and recyclable packaging to reduce material
waste.
Example:
Unilever – Uses recycled plastic packaging and aims for 100%
recyclable or compostable packaging by 2025.

PAGE 30
Benefits of Circular Economy & Sustainable Resource Management
Benefit Impact
🌍 Reduces Lowers carbon emissions, pollution, and
Environmental Impact waste.
🔄 Minimizes Resource
Extends the life of natural resources.
Depletion
Reduces material & energy costs for
💰 Cost Savings
businesses.

🏢 Regulatory Meets sustainability & ESG regulations (e.g.,

Compliance SEBI BRSR, EU Green Deal).

Creates new business opportunities in

👥 Job Creation recycling, remanufacturing, and green
energy.

How Can Organizations Transition to a Circular Economy?

Step 1: Conduct a Material Flow Assessment → Identify waste
generation hotspots.
Step 2: Redesign Products & Packaging → Focus on sustainability,
reusability, and recyclability.
Step 3: Optimize Supply Chains → Implement circular supply chains
& closed-loop logistics.
Step 4: Educate Stakeholders → Train employees, suppliers, and
customers on circular practices.
Step 5: Implement Technology Solutions → Use AI, IoT, and
blockchain for material tracking & recycling.

• Practical Exercise: Carbon Footprint Calculation

Week 4: Social & Governance Aspects of ESG

• Diversity, Equity & Inclusion (DEI) Strategies

PAGE 31
• What is Diversity, Equity & Inclusion (DEI)?
• Diversity, Equity, and Inclusion (DEI) are key principles that help
organizations create a fair and inclusive workplace culture where all
individuals can thrive.
• Diversity refers to the presence of differences in a workplace,
including race, gender, age, ethnicity, disability, sexual orientation,
socioeconomic background, and more.
• Equity ensures fair treatment, access, and opportunities for all
employees by addressing systemic barriers and disparities.
• Inclusion is about creating a work environment where every
employee feels valued, respected, and empowered to contribute fully.
• DEI is not just a moral imperative but also a business advantage.
Companies with strong DEI practices tend to have higher employee
engagement, better decision-making, and improved innovation.

How to Develop DEI Strategies?

Creating an effective DEI strategy requires a structured approach.
Below is a step-by-step process:
1. Assess the Current State
• Conduct DEI Audits: Review workforce demographics, promotion
rates, pay equity, and employee engagement surveys.
• Gather Employee Feedback: Use anonymous surveys, focus groups,
and one-on-one interviews to understand challenges.
• Analyze HR Data: Check for diversity gaps in hiring, retention, and
leadership positions.
2. Define Clear DEI Goals & Metrics
• Set measurable objectives such as:
• Increase representation of underrepresented groups in leadership.
• Reduce pay disparities across gender and race.
• Improve employee inclusion scores in annual surveys.

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• Align DEI goals with business objectives to ensure long-term
commitment.
3. Implement Inclusive Hiring & Advancement Policies
• Unbiased Recruitment: Use blind resume screening and structured
interviews to reduce bias.
• Diverse Talent Pipelines: Partner with universities, non-profits, and
job boards that focus on underrepresented talent.
• Equitable Promotion & Retention: Ensure transparent performance
evaluations and equal access to leadership opportunities.
4. Foster an Inclusive Workplace Culture
• Leadership Commitment: Train executives and managers to be DEI
advocates.
• Employee Resource Groups (ERGs): Support networks for diverse
employees to voice concerns and drive change.
• Recognition & Celebration: Acknowledge cultural events and
achievements of diverse employees.
5. Provide DEI Training & Development
• Conduct Unconscious Bias Training to address hidden prejudices in
decision-making.
• Offer Cultural Competency Programs to build awareness about
different backgrounds and perspectives.
• Establish Mentorship & Sponsorship Programs to support
underrepresented employees in career growth.
6. Ensure Equitable Policies & Benefits
• Conduct Pay Equity Audits to identify and eliminate wage gaps.
• Offer Flexible Work Arrangements to accommodate diverse needs,
including remote work and parental leave.
• Strengthen Anti-Harassment & Non-Discrimination Policies with
clear reporting mechanisms.
• 7. Measure, Improve, and Sustain DEI Efforts

PAGE 33
• Track DEI Metrics (hiring, promotion, retention, pay equity,
engagement survey results).
• Regularly Review & Adjust Strategies based on data insights and
employee feedback.
• Benchmark against industry best practices and evolve policies to
stay competitive.

• Why DEI Strategies Matter?

• ✔ Higher Employee Engagement → Inclusive workplaces lead to

more satisfied and motivated employees.
✔ Better Business Performance → Diverse teams drive innovation,
creativity, and decision-making.
✔ Stronger Brand Reputation → Organizations with strong DEI
policies attract top talent and loyal customers.
✔ Regulatory Compliance → Many industries have legal
requirements for diversity and equal opportunity.

• Human Rights, Labor Standards & Ethical Supply Chains

• Human Rights, Labor Standards & Ethical Supply Chains

• These three concepts are essential for ensuring businesses operate
responsibly and sustainably, respecting human dignity, fair labor
practices, and ethical sourcing across their supply chains.

1. What are Human Rights, Labor Standards & Ethical Supply

Chains?
• a) Human Rights

PAGE 34
• Human rights are the basic freedoms and protections that belong to
every individual, as defined by the United Nations Universal
Declaration of Human Rights (UDHR). In a business context, this
means ensuring:
• No forced labor or child labor.
• Safe and fair working conditions.
• Non-discrimination and equal opportunities.
• Freedom of association (workers’ right to form unions).
• b) Labor Standards
• Labor standards are guidelines set by international bodies like the
International Labour Organization (ILO) to protect workers' rights.
These include:
• Fair Wages & Working Hours: Adhering to minimum wage laws
and reasonable working hours.
• Health & Safety Regulations: Ensuring safe working conditions.
• Protection Against Exploitation: Preventing modern slavery, forced
labor, and child labor.
• Social Protection: Providing job security, social security, and benefits
for workers.
• c) Ethical Supply Chains
• An ethical supply chain ensures that businesses source their products
and services in a way that is:
• Socially Responsible: Protecting workers’ rights at every stage of the
supply chain.
• Environmentally Sustainable: Minimizing environmental harm (e.g.,
reducing carbon footprint, sustainable sourcing).
• Legally Compliant: Following international labor laws and human
rights regulations.

PAGE 35
 2. How to Implement Human Rights, Labor Standards & Ethical
Supply Chains?
• Step 1: Establish a Corporate Human Rights & Labor Policy

• ✔ Develop a Human Rights Policy aligned with UN Guiding

Principles on Business & Human Rights (UNGPs) and ILO
standards.
✔ Communicate the policy to all employees, suppliers, and
stakeholders.
✔ Commit to zero tolerance for child labor, forced labor, or
discrimination.
• Step 2: Conduct Due Diligence & Risk Assessment
• ✔ Map the Supply Chain: Identify all suppliers and assess risks
related to human rights violations.
✔ Supplier Audits & Assessments: Conduct regular inspections to
ensure compliance.
✔ Stakeholder Engagement: Collaborate with local communities,
NGOs, and worker unions to identify human rights risks.
• Step 3: Implement Ethical Sourcing & Fair Labor Practices

• ✔ Supplier Code of Conduct: Require all suppliers to follow ethical

labor practices.
✔ Fair Wages & Working Hours: Ensure suppliers pay fair wages
and provide safe working conditions.
✔ No Forced or Child Labor: Partner with organizations that verify
ethical labor practices.
• Step 4: Training & Capacity Building

• ✔ Train employees, suppliers, and business partners on human rights

and labor standards.
✔ Educate workers on their rights and grievance mechanisms.
✔ Implement whistleblower protections for reporting violations.
• Step 5: Monitor, Audit & Improve Compliance

PAGE 36
• ✔ Conduct third-party audits to verify compliance.
✔ Establish grievance mechanisms for workers to report human
rights violations.
✔ Track performance using KPIs (e.g., number of reported
violations, supplier compliance rates, worker satisfaction surveys).
• Step 6: Report Progress & Ensure Transparency

• ✔ Publish Sustainability Reports (aligned with GRI, UNGC, or ESG

frameworks).
✔ Disclose labor and human rights policies, risks, and improvements.
✔ Engage in certifications like Fair Trade, SA8000 (Social
Accountability Standard), and B Corp.

3. Benefits of Ethical Human Rights & Labor Standards

Implementation
• ✔ Stronger Brand Reputation → Consumers prefer ethical and
socially responsible brands.
✔ Legal & Regulatory Compliance → Avoid penalties and lawsuits
related to labor rights violations.
✔ Better Supplier Relationships → Promotes long-term partnerships
and reliability.
✔ Increased Employee Satisfaction → Fair workplaces lead to higher
retention and productivity.
✔ Sustainable Business Growth → Ethical supply chains ensure
long-term profitability and resilience.

Corporate Governance, Board Oversight & Anti-Corruption

1. What is Corporate Governance in ESG?

Corporate governance refers to the system of rules, policies, and

processes by which a company is directed and controlled. It ensures
that businesses act responsibly, balancing the interests of
shareholders, employees, customers, suppliers, and the public.

PAGE 37
 • Key Elements of Corporate Governance in ESG:
✔ Board Structure & Independence → Ensuring diversity,
independent directors, and expertise.
✔ Executive Compensation & Ethics → Aligning CEO pay with
long-term ESG performance.
✔ Shareholder Rights & Transparency → Fair voting rights and
ethical reporting.
✔ Risk Management & Compliance → Identifying ESG risks and
maintaining regulatory compliance.

2. What is Board Oversight in ESG?

• Board oversight refers to how a company’s board of directors

ensures ESG integration in decision-making. The board is
responsible for aligning corporate strategies with ethical, legal, and
sustainability goals.
• Board Responsibilities in ESG:
✔ ESG Strategy & Integration → Setting long-term ESG goals and
ensuring accountability.
✔ Stakeholder Engagement → Listening to investor, employee, and
community concerns on ESG issues.
✔ Risk & Crisis Management → Addressing financial,
environmental, and reputational risks.
✔ Reporting & Disclosure → Ensuring transparency in ESG
performance through sustainability reports.

What is Anti-Corruption in ESG?

• Anti-corruption refers to a company’s efforts to prevent fraud,

bribery, and unethical business practices. This is crucial for
maintaining corporate integrity and trust.
• Key Anti-Corruption Measures in ESG:
✔ Anti-Bribery Policies → Establishing zero tolerance for bribery
and kickbacks.
✔ Whistleblower Protection → Encouraging employees to report
misconduct without fear of retaliation.
✔ Third-Party Due Diligence → Vetting suppliers and partners for

PAGE 38
 ethical business conduct.
✔ Legal Compliance → Adhering to global standards like the U.S.
Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act.

• 4. How to Implement Governance, Board Oversight & Anti-

Corruption Strategies in ESG?

• Step 1: Strengthen Corporate Governance

• ✔ Create a diverse and independent board with ESG expertise.
✔ Establish clear ESG policies and compliance frameworks.
✔ Align executive compensation with ESG goals to ensure
accountability.
• Step 2: Improve Board Oversight on ESG
• ✔ Assign an ESG Committee at the board level.
✔ Require regular ESG reporting and risk assessments.
✔ Engage with investors, regulators, and stakeholders on ESG
issues.
• Step 3: Enforce Anti-Corruption Policies
• ✔ Implement mandatory ethics and anti-corruption training for
employees.
✔ Introduce a whistleblower hotline with strong protection policies.
✔ Conduct third-party risk assessments to monitor corruption risks
in the supply chain.

• 5. Benefits of Strong Corporate Governance in ESG

• ✔ Builds Investor Trust → Companies with strong governance
attract long-term investors.
✔ Reduces Financial & Legal Risks → Avoids fines and penalties
from corruption or compliance failures.
✔ Enhances Reputation & Market Value → Ethical companies gain
customer loyalty and brand credibility.
✔ Ensures Sustainable Growth → Aligns corporate strategies with
long-term social and environmental responsibility.

• Practical Exercise: ESG Risk Assessment

PAGE 39
Month 2: ESG Strategy, Compliance & Reporting
Week 5: ESG Risk Management & Compliance
• ESG Risk Identification & Mitigation Strategies

ESG (Environmental, Social, and Governance) risk identification

involves recognizing potential threats that could impact a company’s
financial performance, reputation, and regulatory compliance.
Mitigation strategies help manage and reduce these risks to improve
sustainability and business resilience.

Key ESG Risk Areas & Mitigation Strategies

1️Environmental Risks
Risks:
• Climate change & carbon emissions
• Water scarcity & pollution
• Biodiversity loss & deforestation
• Energy inefficiency
Mitigation Strategies:
Carbon footprint reduction via renewable energy & efficiency
measures
Implementing ISO 14001 (Environmental Management System)
Sustainable supply chain & circular economy adoption
Water & waste management policies

2️. Social Risks

Risks:
• Labor rights violations & workforce safety
• Diversity, equity & inclusion (DEI) issues
• Product safety & consumer trust
• Community relations & human rights concerns

PAGE 40
 Mitigation Strategies:
ISO 45001 for occupational health & safety
Fair wages, ethical sourcing & strong labor policies
Transparent customer engagement & product responsibility
Social impact assessments & stakeholder engagement

3️. Governance Risks 🏛

Risks:
• Corporate fraud & unethical leadership
• Lack of ESG transparency & disclosures
• Cybersecurity & data privacy threats
• Regulatory non-compliance
Mitigation Strategies:
ISO 27001 for information security & cyber resilience
Strong corporate governance policies & board diversity
Compliance with GRI, SASB, TCFD, and other ESG reporting
frameworks
Whistleblower protection & anti-corruption measures

• Compliance with ISO 14001, ISO 50001, ISO 45001and ISO 27001
Understanding ISO 14001, ISO 50001, ISO 45001, and ISO 27001
ISO standards help organizations establish management systems for
better efficiency, compliance, and risk mitigation. Here’s a
breakdown of these four key standards and the certification process.

1️.ISO 14001 – Environmental Management System (EMS)

Purpose: Helps organizations manage environmental responsibilities
systematically.
Key Focus Areas:
Reducing waste & pollution
Efficient resource usage

PAGE 41
 Regulatory compliance
Continuous environmental improvement
Benefits:
✔ Reduces environmental impact
✔ Improves corporate sustainability reputation
✔ Ensures legal compliance

2️.ISO 50001 – Energy Management System (EnMS)

Purpose: Helps businesses optimize energy use, reduce costs, and
improve sustainability.
Key Focus Areas:
Energy efficiency improvements
Monitoring & reducing energy consumption
Renewable energy integration
Continuous improvement in energy performance
Benefits:
✔ Cuts energy costs & carbon footprint
✔ Enhances energy security & efficiency
✔ Supports sustainability & net-zero goals

3️.ISO 45001 – Occupational Health & Safety Management (OH&S)

Purpose: Ensures workplace safety and health risk management.

Key Focus Areas:
Hazard identification & risk assessment
Employee well-being & workplace safety
Compliance with health & safety laws
Incident prevention & emergency preparedness
Benefits:
✔ Reduces workplace injuries & illnesses
✔ Improves employee productivity & morale
✔ Ensures regulatory compliance

PAGE 42
 4. ISO 27001 – Information Security Management System (ISMS)

Purpose: Protects sensitive business & customer data from cyber

threats.
Key Focus Areas:
Data protection & cybersecurity
Risk assessment & mitigation
Compliance with GDPR & privacy regulations
Incident response & business continuity planning
Benefits:
✔ Reduces cybersecurity risks & data breaches
✔ Enhances trust with clients & stakeholders
✔ Ensures legal compliance (GDPR, HIPAA, etc.)

How to Certify an Organization for ISO?

Step 1: Gap Analysis & Readiness Assessment

• Identify gaps between current processes & ISO requirements.
• Develop an implementation roadmap.

Step 2: Develop & Implement the Management System

• Establish policies, procedures & controls.
• Train employees on ISO standards & compliance.
• Monitor & document system performance.

Step 3: Internal Audit & Corrective Actions

• Conduct internal audits to assess readiness.
• Address non-conformities & improve processes.

PAGE 43
 Step 4: Certification Audit (External Audit)
• Accredited certification bodies (CBs) conduct an independent audit.
• Stage 1: Document review & initial assessment.
• Stage 2: On-site audit to verify compliance.

Step 5: Certification & Continuous Improvement

• If successful, certification is issued (valid for 3 years).
• Annual surveillance audits ensure ongoing compliance.

Why Get ISO Certified?

✔ Boosts credibility & competitive advantage

✔ Ensures regulatory compliance & risk management
✔ Enhances operational efficiency & sustainability
Please connect Ecoverix Solutions Pvt Ltd for ISO
Certification
( Email [email protected] )

Week 6: Sustainability Performance & Reporting Metrics

• Key Performance Indicators (KPIs) in ESG

• Key Performance Indicators (KPIs) in ESG (Environmental, Social,

and Governance)

• KPIs in ESG help organizations measure, track, and improve their

sustainability performance. Investors, regulators, and stakeholders
use these metrics to assess an organization's commitment to
environmental responsibility, social impact, and corporate
governance.

• Key ESG KPIs by Category

PAGE 44
•
• 1️.Environmental KPIs (Measure sustainability & resource efficiency)
• Carbon Footprint (CO₂ Emissions) – Total greenhouse gas (GHG) emissions
(Scope 1, 2 & 3)
Energy Efficiency – Energy consumption per unit of output (ISO 50001 aligned)
Water Usage & Wastewater Management – Reduction in water consumption &
recycling rates
Waste Management – % of waste diverted from landfills (circular economy impact)
Renewable Energy Usage – % of total energy sourced from renewables
Biodiversity Impact – Land & ecosystem conservation efforts

2️.Social KPIs (Measure employee well-being, community impact &

human rights)

• Workplace Safety (TRIR, LTIR) – Injury rates & lost time incidents (ISO 45001
aligned)
Employee Diversity & Inclusion – % of workforce & leadership diversity
Employee Training & Development – Hours of ESG & compliance training
Human Rights & Supply Chain Ethics – Supplier code of conduct compliance rate
Customer Satisfaction & Product Responsibility – Net Promoter Score (NPS) &
quality measures
Community Engagement & Social Investment – % of revenue allocated to CSR
initiatives

3️. Governance KPIs 🏛 (Measure corporate ethics, compliance & risk

management)

Board Diversity & Independence – % of independent directors &

gender diversity
ESG Policy & Compliance – Adherence to ESG frameworks (GRI,
SASB, TCFD, CDP)
Cybersecurity & Data Protection – ISO 27001 compliance & # of
security incidents
Anti-Corruption & Ethical Practices – % of employees trained on
anti-bribery policies
Executive Compensation Linked to ESG – % of leadership pay tied
to ESG goals
Regulatory Compliance & Risk Management – Number of
violations & penalties

PAGE 45
 • Practical Exercise: KPI Development for ESG

Month 3: Implementation & Capstone Project

Week 9: Circular Economy & Sustainable Business Models
• Product Life Cycle Assessment (LCA)

Life Cycle Accounting (LCA) is a method used to assess the environmental

impact of a product, process, or service throughout its entire life cycle. It is
often used interchangeably with Life Cycle Assessment (LCA) but focuses
more on the financial and material flow aspects alongside environmental
impact.
Key Aspects of Life Cycle Accounting (LCA):
1. Cradle-to-Grave or Cradle-to-Cradle Analysis – Tracks the full
journey from raw material extraction to disposal or recycling.
2. Resource Use & Energy Consumption – Measures how much
energy, water, and raw materials are consumed.
3. Emission & Waste Tracking – Identifies carbon footprints, waste
generation, and emissions at each stage.
4. Cost and Financial Impact – Evaluates the monetary cost associated
with each stage of the product life cycle.
5. Decision-Making for Sustainability – Helps businesses optimize
processes, reduce waste, and improve sustainability efforts.

PAGE 46
 Step by Step #LCA (Life Cycle Assessment) & #ISO14040 and
#ISO14044
LCA is a systematic approach used to evaluate the environmental impacts
of a product, process, or service throughout its life cycle, from raw material
extraction to disposal.

LCA follows a structured methodology defined by ISO 14040 and ISO

14044 standards. Here's a step-by-step explanation of the LCA procedure
with an example:

PAGE 47
1. Goal and Scope Definition
Purpose: Define why the LCA is being conducted (e.g., identify hotspots,
compare products, inform decision-making).
System Boundary: Determine the boundaries of the study (e.g., cradle-to-
grave, cradle-to-gate, or gate-to-gate).
Functional Unit: Specify a quantifiable function of the product or system
(e.g., "1 liter of milk" or "1 kWh of electricity").
Example:
Goal: Compare the environmental impacts of producing 1 kg of paper
from virgin pulp versus recycled pulp.
Scope: Cradle-to-grave, including raw material extraction, manufacturing,
transportation, usage, and disposal.
Functional Unit: 1 kg of paper.
2. Inventory Analysis (LCI)
Data Collection: Gather data on all inputs (e.g., raw materials, energy) and
outputs (e.g., emissions, waste) for each process in the life cycle.
Model the System:
Allocation: Allocate shared impacts if a process produces multiple outputs
(e.g., co-products).
3. Impact Assessment (LCIA)
Classification: Assign inventory data to environmental impact categories
(e.g., global warming, #acidification, #eutrophication).
Characterization: Quantify the contribution of each input/output to these
impact categories using standardized impact assessment models (e.g.,
#IPCC for global warming potential).

4. Interpretation
Identify Hotspots: Determine the stages or processes with the highest
environmental impact.
Sensitivity Analysis: Test how changes in assumptions or data affect
results.
Recommendations: Provide actionable insights for improvement, such as
using renewable energy or alternative raw materials.
5. Reporting
Document all findings, methods, and assumptions clearly and
transparently.
Ensure the report adheres to ISO 14040/14044 guidelines if intended for
public disclosure or certification.

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Example:
The report concludes that recycled pulp paper is environmentally
preferable, with 50% less CO₂ emissions and 40% less water use compared
to virgin pulp paper.
#Please connect with us for LCA, ESG, Energy Audit, GHG related services
& Trainings ([email protected])
• Practical Exercise: LCA for a Product/Service

Week 10: Industry Project & Final Report Submission

Project: Participants will choose an industry/organization to develop a

comprehensive ESG strategy and reporting framework, including:

✔ ESG Materiality Assessment

✔ ESG Risk Mitigation Plan
✔ Sustainability KPIs & Compliance Checklist
✔ Draft ESG/Sustainability Report

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PLEASE CONNECT WITH US FOR
1-ENVIRONMENTAL MANAGEMENT SYSTEM ISO 14001
CERTFICATION
2-ISO 14001 TRAININGS FOR INTERNAL AUDITORS, AWARENESS
TRAINING
3-ISO 14001 DOCUMENTATION INCLUDING ENVIRONMENTAL
SYSTEM MANUAL, ENVIRONMENTAL PROCEDURE MANUAL,
ENVIRONMENTAL RISK MANAGEMENT & ISO 14001 INTERNAL
AUDIT
4-ISO 14001, ISO 45001, ISO50001, ISO 9001 Certification
ISO 13485, ISO 22000, ISO 28001, ISO 27001 Certification
5- Pharma, Biotech & Medical device compliance, ISO 15378, ISO 22716,
GMP Audit, GCP Audit, SEDEX SMETA

Mr. Avneesh Pandey & Mr. S.N.JHA

ECOVERIX SOLUTIONS PVT LIMITED
E-mail-
[email protected] Mo- 9997092916
[email protected] Mo- 8057921557

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