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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board's Accountability on ESG

Veda Textiles Ltd, a listed company, is revising its five-year strategy. The Board wants ESG to be treated as a core part of how the company creates long-term value, not as a separate public-relations exercise. Which step best shows ESG integration into strategy?

The best sign of ESG integration is setting measurable ESG targets tied to the business plan and having the Board review progress regularly. This makes ESG part of value creation and Board accountability, unlike brochures, marketing-only delegation or bare minimum CSR spending.

  1. APublishing a sustainability brochure once a year after the accounts are finalised
  2. BSetting measurable ESG targets linked to business plans and reviewing progress at Board level periodicallyCorrect
  3. CDelegating all ESG matters to the marketing team without Board reporting
  4. DLimiting ESG activity to the minimum statutory CSR spend

Explanation

Integration means ESG goals are embedded in business planning, have measurable targets and are overseen by the Board. A brochure, delegation without reporting, or only statutory CSR spend keeps ESG peripheral and does not involve Board accountability for strategy.

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