Page 618 - COSO Guidance

3. Performance for ESG-related risks

Table 3c.3: Examples of industry or commodity-specific collaborations

Industry or Collaboration Value created
commodity
Apparel Sustainable The Sustainable Apparel Coalition is the apparel, footwear and textile industry’s foremost
Apparel Coalition alliance for sustainable production. The coalition’s focus is on building the Higg Index, a
standardized supply chain measurement tool for all industry participants to understand the
environmental, social and labor impacts of making and selling their products and services.
26
Beef Global The Global Roundtable for Sustainable Beef (GRSB) is a global, multi-stakeholder initiative
Roundtable for developed to advance continuous improvement in sustainability of the global beef value chain
27
Sustainable Beef through leadership, science and multi-stakeholder engagement and collaboration.
Beverage Beverage Industry The Beverage Industry Environmental Roundtable (BIER) is a technical coalition of leading
Environmental global beverage companies working together to advance environmental sustainability within
Roundtable the beverage sector.
28
Electronics Global The Global e-Sustainability Initiative (GeSI) is a leading source of impartial information,
e-Sustainability resources and best practices for achieving integrated social and environmental sustainability
Initiative through its membership of information and communication technology companies. 29
Extractives Extractive The Extractive Industries Transparency Initiative (EITI) is the global standard to promote the
Industries open and accountable management of oil, gas and mineral resources. The EITI seeks to
Transparency strengthen government and company systems, inform public debate and promote
Initiative understanding. In each of the implementing countries, the EITI is supported by a harmonizing
coalition of government, companies and civil society.
30
Multiple Asian The Asian Roundtable Task Force on Related Party Transactions was established to develop
Roundtable a practical guide to monitoring related party transactions. The meeting identified concrete
Task Force on options for detecting and curbing abuse, such as harmonizing the definition, assessing
Related Party strengths and weaknesses of various regulatory approaches and tightening enforcement as
Transactions well as facilitating a change in culture and practices.
31
Pharmaceutical Good Pharma The Good Pharma Scorecard, developed by Bioethics International (BEI), sets standards to rank
Scorecard and audit pharmaceutical companies and new drugs on how the drugs are tested, marketed
and made available to patients. The initiative convenes physicians, patients, academics,
regulators and pharma – to raise the bar on ethics and patient-centricity in the industry. 32

Conducting risk assessments and cross-company scenario planning enables policymakers and industries
to proactively identify network vulnerabilities and confer on the design of new legislation and regulation. This
also fosters collaboration between regulators and business to address any challenges associated with the
implementation of legislation.

Using “context-based” goals in determining risk response
As mentioned in Chapter 2, sustainability literature discusses context in terms of how an organization
contributes to the deterioration or improvement of ESG conditions, developments and trends at a local,
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regional or global level. For example, a context-based water target for a company may account for:
• A scientific understanding of a basin’s conditions
• Local and global policy objectives
• The needs and perspectives of various stakeholders while maintaining alignment to the business
context and strategy
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Practitioners can also apply science-based emissions targets as context-based goals to climate change
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to help companies develop reduction strategies in line with their industry or economic contributions.
Additional resources to support entities to set context-based goals include the Context-Based Water
b
c
d
e
Targets Group, C-FACT, BT-Climate Stabilisation Intensity, the 3% Solution, Context-Based Carbon
Metric or Science-Based Targets. For more guidance on contextualizing strategy and goals – refer to
f
g
“The Road to Context: Contextualizing your Strategy and Goals.” 36
. . . . . . . . . . . . . . . .
b Developed in collaboration with the UN Global Compact’s CEO Water Mandate, establishes a framework to support the development of contextual water goals.
c Developed by Autodesk, Corporate Finance Approach to Climate-Stabilizing Targets (C-FACT) uses the IPCC climate stabilization recommendation of reducing
greenhouse gas emissions by 85% by 2050 as its foundation. The methodology consists of four steps that aim to enable companies to develop contextual greenhouse
gas emissions goals that are verifiable, flexible and fair.
d Developed by the BT Group, the Climate Stabilisation Intensity (CSI) Target model uses the 2007 Bali Climate Declaration as a baseline to develop a straightforward
calculation that illustrates the absolute GHG emissions reductions needed to achieve the declaration in relation to GDP. This enables companies to develop a greenhouse
gas emissions goal that is aligned with their contribution to GDP.
e The WWF and CDP partnered to create the 3% Solution, an online calculator that helps companies apportion their responsibility for greenhouse gas emissions in a way
that is aligned with current climate science data. By focusing on cost savings, the project tries to build a compelling business case for US companies to set ambitious
carbon targets.
f Developed by the Centre for Sustainable Organizations in 2006 and was the first contextual greenhouse gas metric developed. It supports the inclusion of scopes 1, 2
and 3 emissions and can take individual organizational changes into account.
g Launched in 2015, the Science-Based Targets initiative is a partnership between CDP, UN Global Compact, World Resources Institute (WRI) and the WWF aimed at
helping companies determine how much they must reduce their emissions to prevent the impacts of climate change.
Enterprise Risk Management | Applying enterprise risk management to environmental, social and governance-related risks • October 2018 71