Our end-to-end ESG Assurance Solutions help customers solve a combination of risks and needs across their value chain, to redefine their journey to sustainability.
SGS ESG Assurance Solutions REDEFINING YOUR JOURNEY TO SUSTAINABILITY
SGS.COM/ESGASSURANCE
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Our end-to-end solutions help customers solve a combination of risks and needs across their value chain, to redefine their journey to sustainability.
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REDEFINE THE JOURNEY
Our Sustainability Solutions A comprehensive range of end-to-end services to help organizations mitigate risks in their supply chains, implement better and more efficient processes, address stakeholder concerns and accomplish sustainability goals. Our solutions are founded on the need to drive better and safer business practices across six pillars. Each pillar contains services that aim to solve an issue or need within that value chain level, depending on the organization’s maturity level.
Improving Business Practices with ESG Assurance Solutions ESG refers to the environmental, social and governance criteria and goals that a company strives to achieve to demonstrate the value they bring to stakeholders and society. Categorized within the Sustainable Business Practices pillar, ESG Assurance Solutions aim to provide a unique set of competencies to help clients achieve specific targets and goals.
Sustainable Use of Natural Resources
Sustainable Energy
Sustainable Production
Sustainable Infrastructures
Sustainable Living
Sustainable Business Practices
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The Evolution of ESG ESG criteria are an increasingly
popular way for investors to evaluate companies in which they might want to invest. ESG criteria can help investors avoid companies that might pose a greater financial risk due to their environmental or other practices. 96% of the world’s largest 250 companies report on their sustainability performance and 80% of N100 companies worldwide report on sustainability. The reality in which organizations operate is defined by megatrends like increased connectivity and mobility, climate change, the depletion of natural resources, rapid urbanization, etc. Stakeholders, including consumers, investors, employees and society in general, demand companies go beyond mere compliance with legal requirements and instead have a positive impact that reflects a true commitment to sustainability leadership. This requires an active contribution to the UN Sustainable Development Goals (SDGs) and to embark on a journey towards value creation across the whole business model.
2006 UN PRI is established with 63 signatories and 6.3t AUM
2011 SASB forms with a mission to establish standards for ESG reporting
2009 Global Impact Investing Network is launched
2017 Climate action 100+ TCFD
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REDEFINE THE JOURNEY
2019 • October 15 compliance to PRA requirements • IORP II ESG criteria in investment decisions • Regulation on EUTaxonomy (EU-Ecolabel) • DWP regulation requiring pension schemes to have policy on ESG factors • SEC examination letter to ESG funds focusing on advisors’ criteria and methodology
2020 • EC launches an initiative to revise the Non-Financial Reporting Directive (NFRD) • Prudential Regulation Authority (PRA) publishes ‘Dear CEO’ letter to UK insurers regarding distribution of profits during COVID-19
2018 Asset managers petition SEC for stronger ESG disclosure standards
2021-2022 Full implementation of EU Action Plan
2019 UN PRB
2020 PRI Signatories TCFD reporting/ disclosure
2022 Mandatory TCFD disclosure in the UK
Milestone category: Voluntary
Mandatory
Significant ESG activity
Source: Ernst &Young
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Our ESG Assurance Solutions mitigate risks while optimizing success, helping clients to achieve their goals through a portfolio of environmental, social and governance solutions.
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REDEFINE THE JOURNEY
The Growing Demand for Meeting Environmental, Social and Governance Criteria ESG impacts all stakeholders in the corporate and investment arenas. For this reason, we have developed a portfolio of services that aim to meet the needs of a variety of clients and organizations, whatever their level of maturity, industry focus or need.
Client Pain Points
Corporations • Increased scrutiny of company performance and disclosures
Ratings Agencies • Credibility of data sources • Challenges focusing on relevant/ material issues • Inconsistent and incomparable assessments and ratings
Green Finance Providers, PE & Investor Groups • Increasing focus on non-financial risks and ESG disclosure • Absence of standardized regulations and guidelines • Uncertainties about regulation frameworks
• Information gap on ESG related issues • No standardization of approach to ESG management and disclosure
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ESG Assurance Solutions ESG Assurance Solutions provide a comprehensive framework to help clients achieve their environmental, social and governance (ESG) goals. Leveraging SGS’s expertise in compliance, verification and training services, we create tailored solutions that meet the individual requirements of the client.
ESG Verified Third-party ESG risk evaluation, due diligence, data verification and report assurance to achieve high quality and assured results with external expertise and verification. ESG Optimized Advisory services for improved ESG disclosures or processes, management and performance with clear action plan solutions leading to ESG practice optimization. ESG Certified Performance evaluation based on SGS criteria and certifications under environmental, social and governance categories, leading to the issuance of an ESG certificate.
ESG Management System and Action Plan
ESG Disclosure Gap Analysis
ESG Data Verification and Report Assurance
ESG Certification
ESG Risk Evaluation and Due Diligence
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REDEFINE THE JOURNEY
Roadmap to Improved ESG Practices Redefine your journey to sustainability. Whether your goal is raising your ESG rating or a stock market listing, our experts will identify the issues and compliance gaps that may impede your progress. ESG Assurance Solutions follow a simple process for identifying the needs of our clients. After an initial assessment and analysis of the findings, our technical experts will recommend a tailored range of solutions from our Certified, Verified and Optimized service categories.
Verified
ESG Report & Verification Statement
Optimized ESG Action Plan Implementation for Improved ESG Performance
Identify
Analyze
Output
Identify material ESG risks by evaluating sector, regional, internal and external information
Conduct analysis against a set of criteria, identifying potential gaps across all ESG areas Provide competitive, data-driven benchmarking across these areas
Certified ESG Certificate
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ESGVerified
Responding to SDGs:
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REDEFINE THE JOURNEY
ESG Risk Evaluation and Due Diligence Third-party ESG risk evaluation and due diligence service that delivers high quality and assured results through external expertise and verification. Identifies material ESG risks and gaps and provides a proactive action plan for mitigating these risks. ESG Data Verification and Report Assurance Verify data quality and accuracy to increase the value of disclosures with trusted and comparable data. Independent assurance of ESG Disclosures and/or Sustainability Report against international standards, such as the Global Reporting Initiative (GRI) and the AA 1000 Accountability Principles (2018), to increase the confidence of stakeholders in the content and accuracy of disclosures and reports. ESG Financial Instruments Verification Pre-issuance and post-issuance verification of bonds against relevant principles and standards to offer 2nd party opinion or verification statement, providing increased confidence. Equator Principles Independent verification of adherence to the Equator Principles which comprise a voluntary credit risk management framework and set of guidelines for environmental and social risk assessment in project finance activities.
Providing independent external ESG risk and materiality evaluation, verification of ESG data, disclosures, systems and ESG financial instruments to increase stakeholder confidence and trust.
We will continue to publish and announce upcoming ESG Verified solutions to meet your needs.
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ESG Optimized
Responding to SDGs:
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REDEFINE THE JOURNEY
ESG Management System and Action Plan ESG Management System and Action Plan Solutions aim to provide diagnostic consultancy and advice on the management of your ESG issues, together with a recommended action plan to support implementation and optimization. ESG Disclosure Gap Analysis Our ESG Disclosure Gap Analysis service evaluates actions needed to improve performance across ESG criteria and disclosures, providing an action plan for how to address the identified gaps to improve disclosures.
Improve overall performance and compliance to mitigate operational and reputational risks.
ESG Training Package Options Based on an initial review and assessment of a client’s ESG needs, we can provide a customized package of training solutions, ranging from introductory materials to topic-specific courses.
ESG Awareness Introduction to ESG Standards & Guidance Corporate Responsibility
Management System Implementation Internal Auditor Lead Auditor
Topic, Standard or Industry Specific Environment Social Governance
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ESG Certified
Responding to SDGs:
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REDEFINE THE JOURNEY
ESG Certification ESG Certification audit follows detailed assessment of ESG risks and utilizes individual E, S and G certification standards, SGS ESG criteria, and provides certification audit options including: • Selected ESG Certification Standards Only • SGS ESG Criteria Only • SGS ESG Criteria plus selected Certification Standards
Create mechanisms to deliver continual improvements in ESG performance with definable results for customers, employees and stakeholders.
Service Elements
Individual Certifcation Elements
ESG Certification
Material ESG Risks
Certification Audit
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25+Years of Sustainability Experience
1990s Begin offering Green Dove Award and SA8000
2000s Launch Sustainability Report Assurance Service
2010s Expansion of portfolio to include Equator Principles, Higgs Index, and more
2021 L aunch ESG Assurance Solutions
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REDEFINE THE JOURNEY
SGS has operated as an industry leader in sustainability and ESG service provision for over 25 years. With expertise in all major industries, we understand each sector’s pain points and have the technical expertise and logistical capabilities to ensure realistic sustainability outcomes. Global Technical Expertise & Network Utilizing a global network of more than 2,600 offices across 89 countries, we offer high-level support to clients who are addressing local, national and international sustainability risks. Our experts offer comprehensive technical support while understanding the local language, standards and customs, making it easier for companies to facilitate both local and global projects. Consistency of Service & Execution We deliver consistent results with excellent customer service and support. Our clients receive end-to-end support – from contract to report – and gain peace of mind through services that are delivered with integrity. Services Portfolio Integrated solutions allow us to operate as a single vendor covering all client types and areas of ESG. Our holistic service packages are tailored to meet the individual needs of the client and not the general demands of the industry.
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Follow the Leader We have been at the forefront of sustainability for many years. Already, we have implemented many of the solutions mentioned within our own organization delivering significant change, improvements in performance and a stronger brand.
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REDEFINE THE JOURNEY
Our sustainability leadership is based on a strong commitment to creating value for our stakeholders and wider society. As one of the most sustainable companies in the world, we are building on our own expertise and long experience working with customers around the globe to provide best-in-class Sustainability Solutions. As a purpose-driven company, our goal is to add long-term value to society across our whole value chain. This means that we are committed to using our scale and expertise to spread positive impacts beyond our company and accompany our clients on their own journey towards value creation. Our approach to sustainability Sustainability is one of our Business Principles; it is embedded in our culture and the way we do business.
– 2014 Carbon neutral since 2014
CHF 1,243 k Invested in communities around the world
Governance Strong sustainability governance structure 100 % of spend analyzed for sustainability risks
43 % Decrease in total greenhouse gas emissions against a 2014 baseline
68 % TRIR decrease since 2014
95 % Electricity from renewable sources
Zero Zero tolerance of any form of discrimination
Incentive Management incentive plan linked to sustainability
2021
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WWW.SGS.COM SGS.COM/ESGASSURANCE
SGS Headquarters 1 Place des Alpes
P.O. Box 2152 1211 Geneva 1 Switzerland
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