ESG Policy Template

ESG Policy

Purpose of ESG Policy

This ESG Policy explains [Company Name] approach to environmental, social, and governance matters. The policy exists to set clear expectations for employee conduct and operational practices that support sustainability, ethical behavior, and good governance across our organization. It guides decision making, reporting, and continuous improvement in ESG performance.

Scope

This policy applies to all employees, contractors, temporary workers, and officers of [Company Name]. It covers all business units, operations, and activities under the control of [Company Name], and extends to joint ventures and supplier relationships where reasonably practicable.

ESG Principles

[Company Name] will pursue ESG objectives that align with our values and business strategy. Core principles include:

• Environmental stewardship through resource efficiency, waste reduction, and responsible supply chain practices.
• Social responsibility by promoting safe workplaces, diversity, inclusion, and respect for human rights.
• Strong governance with transparent reporting, ethical conduct, and accountability for performance.

Environmental Responsibilities

Employees must follow procedures that reduce environmental impact. Practical requirements include:

• Minimizing energy and water use and managing waste according to company guidelines.
• Supporting initiatives to reduce greenhouse gas emissions where applicable.
• Using company resources responsibly and following procurement guidelines that consider environmental factors.

Social Responsibilities

[Company Name] expects employees to contribute to an inclusive and safe workplace. Key rules and entitlements include:

• Treat colleagues, customers, and partners with respect and without discrimination.
• Follow health and safety procedures and report hazards or incidents promptly.
• Support community engagement and volunteer programs when offered by the company.

Governance Responsibilities

Employees must act with integrity and transparency. Governance expectations include:

• Adhering to internal controls, record keeping, and reporting requirements.
• Escalating conflicts of interest, potential compliance issues, or unethical behavior to the appropriate manager or HR.
• Cooperating with audits, investigations, and ESG reporting activities.

Implementation and Monitoring

[Company Name] will implement this policy through operational procedures, training, and defined responsibilities. Monitoring and reporting practices include periodic ESG performance reviews, data collection for internal reporting, and improvement plans where targets are not met.

Training and Communication

Employees will receive appropriate ESG awareness training. Managers are responsible for communicating relevant aspects of this policy to their teams and ensuring that staff understand their obligations and available resources.

Approval Process

Requests, exceptions, or specific ESG-related actions must follow the approval process below:

• Employees should submit requests or exception proposals to their manager with documented rationale and any supporting information.
• Managers review requests, assess risk and alignment with ESG objectives, and either approve, deny, or escalate the request.
• HR or the designated ESG or sustainability lead will review escalated requests, provide guidance on compliance and stakeholder implications, and make final determinations when required.
• Significant deviations from policy or actions with material environmental, social, or governance impact require approval from senior management or the appropriate governance committee.

Managers are responsible for ensuring approved exceptions are documented and communicated. HR supports managers by advising on consistency, training needs, and employee communications.

Non-Compliance

Failure to comply with this policy may result in corrective action. Consequences may include:

• Informal counseling or retraining for procedural lapses.
• Formal disciplinary action for breaches of policy, up to and including termination of employment for serious or repeated violations.
• Reporting to relevant internal or external stakeholders when required by company procedures.

Non-compliance that causes harm, legal risk, or reputational damage will be addressed promptly and may involve remedial measures and corrective action plans.

Note

This policy may be updated from time to time to reflect evolving business needs, stakeholder expectations, and best practices. Employees will be notified of material changes through normal communication channels. If you have questions about this ESG Policy or how it applies to your role, contact HR for clarification and guidance.