G L O B A L B R I E F I N G R E P O RT R E V I E W ESG B R A N D E D S T O RY
Accounting for the “S” in ESG Adapted by Gigi Dawe, LL.M
(This article was adapted from The Rise of the Social Pillar: An Introduction to the “S” in ESG published by CPA Canada.)
Environmental, social and governance (ESG) issues are attracting increased attention globally, in private, public and not-for-profit sectors. Investors’ view ESG as a material factor when assessing the long-term value of organizations, and stakeholders’ attention to ESG matters has intensified. Consequently, boards and managements are incorporating ESG practices into business decisions and recently, particular attention is being placed on the “social” pillar of ESG. The universe of social factors The COVID-19 pandemic has further widened social inequities and injustices around the world. The scope of social factors is broad, and includes human rights, diversity, equity and inclusion (DEI), relations with Indigenous GROUPOFNATIONS.COM
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peoples and communities, public health and safety, and privacy and freedoms. One important area, Indigenous peoples and communities, is receiving much justified attention by organizations and governments globally. The United Nations declaration on the Rights of Indigenous Peoples (UNDRIP) emphasize the rights of Indigenous peoples to live in dignity, to maintain and strengthen their own institutions, cultures, and traditions and to pursue their self-determined development in keeping with their own needs and aspirations. Indigenous rights and engagement also have unique importance in the Canadian context. In 2015, to advance the process of Canadian reconciliation,
the Truth and Reconciliation Commission of Canada made 94 calls to action, including Recommendation 92, Business and Reconciliation. “We call upon the corporate sector in Canada to adopt the United Nations Declaration on the Rights of Indigenous Peoples as a reconciliation framework and to apply its principles, norms, and standards to corporate policy and core operational activities involving Indigenous peoples and their lands and resources”. There is broad recognition of the need for demonstrable corporate action with respect to many social issues and failure to address these matters can impact the organization’s financial performance, market value and public opinion. As interest in social factors continues to grow and
