Ep. 227: Janis Parthun - ESG in Focus: From Theory to Practice

In this illuminating episode of the Count Me In, we sit down with
our esteemed guest, Janis Parthun, VP, Advisory & Project
Services at RGP. She is a leading voice in the world of
Environmental, Social, and Governance (ESG). Dive into the
intricacies of ESG, understand its importance in a business
context, and explore its different facets - from the
environmental to the social and governance perspectives. We also
delve into the challenges companies face in implementing ESG
strategies, discussing the evolving regulatory landscape and
offering insight into the best practices adopted by
forward-thinking businesses. Whether you're an industry veteran
looking to refine your ESG approach or a newcomer eager to
implement an ESG program, this episode is brimming with valuable
insights.


Connect with Janis:
https://www.linkedin.com/in/janisparthun/

Full Episode Transcript:
Adam:           
Welcome to another exciting episode of Count Me In. Today we have
a special guest with us, Janis Parthun. VP, Advisory and Project
Services, at RGP. She is an expert in the field of Environmental,
Social, Governance or ESG, as many of us know it. 


 


Janis brings a wealth of knowledge providing a fresh perspective
on the complexities and significance of ESG. She will walk us
through the intricacies of ESG, discuss its growing prominence,
and share valuable insights on its implementation. So if you're
looking to understand ESG better, and how we can add value to
your business model, this is one episode you won't want to miss.
Let's dive right in.


 


Janis, we're really excited to have you on the Count Me In
podcast. As we go into today, we're going to be talking about ESG
or Environmental, Social, and Governance, and we hear a lot about
that. IMA talks a lot about that. We've been publishing articles.
There's a lot of things happening in the industry. But maybe we
can start off just at a higher level and talk about what does it
mean, what does it represent, in an organization?


 


Janis:           
  Yes, Adam, happy to do that. The term ESG or
Environmental, Social, and Governance can really differ just
depending on who you speak to. But I'd like to establish some
initial background here. Where environmental focuses on the
company's impact on the environment. On the risks, and
opportunities associated with the impact of climate change on the
company, its business, and its industry. 


 


Social may focus on the company's relationship with people and
society, or whether the company's investing in its community. And
governance focuses on issues such as how the company is run, and
possibly connect to executive compensation. 


 


So ESG has been an important element to organizations approach to
create value, as part of the business model, and just to the
greater society impact. But what does this entail? Is what I
often hear. And to elaborate a little bit more, a company's
overarching ESG program will likely have top priorities
determined around ESG matters. With goals, which includes metrics
and possibly targets for future outlook has been set and
established.


 


To reach the goals and the targets, the company may have various
initiatives and action, in order to support the goals. For
example, a company may have climate change as one of its ESG
priorities or material topics, and a goal to reduce emissions
with the target of 40% by 2040. The organization, then, may have
an initiative or a project to convert all transportation fleets
to electric vehicles, as a strategy to reduce the
emissions. 


 


But when we're discussing ESG, at the overarching program or
program level, this is applicable across multiple material topics
or priority topics. Now, the topic of ESG is not new, and there
are significant funds and investments around this. 


 


Currently, over 96% of the S&P 500 already, voluntarily,
publish sustainability reports in some form or fashion. But an
increasing interest from parties to invest, and companies wanting
to communicate or report on ESG. Regulatory and standard-setting
bodies are also paying attention to how companies are reporting
on ESG matters.


 


Adam:           
Definitely, and you see a lot of the bigger organizations
implementing it. But smaller organizations may not quite be ready
or there, yet. And if you are one of those organizations that are
saying, "You know what, I want to jump into this, get into this."
What are some steps that a typical company might undergo to
establish an ESG-type program? Is there a specific, strategic,
approach that you need to take when you're implementing that?


 


Janis:           
  Yes, that's a great point, Adam, and there is a
recommended strategic approach to this. So the other aspect to
think about is the ESG strategic roadmap or steps that companies,
typically, may undergo to establish an ESG program. First, is
really having to determine materiality. This is driven by
stakeholder and market input, industry profile, business
strategy, and suggested standards and frameworks. And, then,
setting goals and targets and execute on the reporting. 


 


So establishing process and oversight to have that
accountability, and report or update related to performance
metrics. And, then, establishing quality control. Establish
process and governance to ensure the quality control of the data
that's collected or reported, and of course, reevaluate in that
cycle. 


 


But, more often than not, companies are encountering challenges,
during the midpoint stages of executing on the ESG program
strategy. And this includes adhering to regulations, standards
and frameworks, and just trying to stay current and up to date.
There are several in the horizon, and it's a lot going on for
companies to navigate through.


 


Program management and governance, having organizational
governance over the ESG program, and monitoring and tracking
against existing goals, appropriately, and evaluating progress.
For example, do you have a governance process around adding or
revising priorities or metrics? And monitoring the actions or
involved in ESG committee that helps govern the goals set and
tracked. And data quality management; is the information
reliable? 


 


For example, is the information collected comprehensive to the
metrics being tracked? Such as inclusive the various regions and
markets. Is that information reliable? Such as is it trackable or
include supporting details. And with each of these challenges,
it's important to pull the right resources in to help and
address.


 


Adam:           
Before we get too much into the details of program management and
those challenges. You've mentioned, a few times, about different
regulating bodies have been watching in certain areas. There are
regulations and new standards coming up, and that can be
challenging for anybody and everybody. A lot of people are
overworked. People are getting stressed out, and the idea of
having more regulations to follow can be very stress inducing.
But, maybe, you can talk a little bit more about how it's
affecting companies and what people can expect?


 


Janis:           
  Yes, I can, definitely, elaborate that a little
bit more, Adam, and dive a little bi...