The Intersection of Environmental, Social, and Governance (ESG) Principles
Environmental, Social, and Governance (ESG) reporting is one tool that organizations can use to evaluate their internal and external impacts and initiatives. Organizations, in particular transportation organizations, have historically reviewed their impact on the environment through sustainability reports and project-based environmental assessments. Likewise, many of the foundations of transportation civil rights requirements, such as Title VI, Environmental Justice, Disadvantaged Business Enterprise, and Equal Employment Opportunity, point to social and governance aspects of providing and planning for transportation service. ESG reporting brings all of these considerations together, allowing an organization to look more comprehensively at its impacts, observing the interconnections between environmental, social, and governance decisions and impacts.
While there is no required framework for ESG reporting, several industry organizations are providing templates for more consistent reporting across industry sectors. Additionally, the components that make up ESG reporting are not mutually exclusive, there is often overlap between the factors considered.
Let’s take a closer look at some typical components of ESG reports.
ESG reports have become important not only as an internal assessment tool, but are increasingly important to external stakeholders to help evaluate how their requirements are being met. Internally, ESG reports demonstrate how core missions and values of an organization are implemented and highlight environmental, social, and governance successes, as well as future areas of emphasis. An additional internal benefit is that an ESG report can showcase and communicate how different segments of an organization work together on common organizational goals.
Many organizations publish their ESG reports. If you are interested in learning more from some local organizations, please visit the below selection of reports: