How Company Secretaries Can Be Your ESG Champions

When you think of a company secretary, what comes to mind? For many, it might be someone who organizes board meetings and handles the paperwork for annual returns. But in today’s business world, the role of a company secretary is much more dynamic and strategic, especially when it comes to Environmental, Social, and Governance (ESG) initiatives.

The Governance Link

ESG is not just about reporting; it’s about how a company operates. Governance, the “G” in ESG, is a critical component that company secretaries are uniquely positioned to influence. Company secretaries manage the systems that support good governance. They organize board meetings, maintain records, ensure directors are aware of their duties, and track compliance deadlines. These functions create the infrastructure that allows ESG initiatives to move from concept to reality.

When developing an ESG program, having someone who understands the company’s governance structure is invaluable. Company secretaries know who needs to approve what, how decisions are documented, and where accountability lies. Their deep understanding of the company’s governance framework makes them essential in driving ESG initiatives forward.

Keeping ESG on the Board’s Agenda

One common challenge companies face is the failure to follow through on ESG commitments. Often, this happens because there is no consistent tracking of progress at the highest level. Company secretaries, who control the board agenda, can ensure that ESG remains a priority.

They can schedule regular updates, flag missed targets, and ensure directors receive accurate and relevant information before meetings. This consistent attention is crucial for the success of ESG strategies, which often falter without sustained senior-level focus. By keeping ESG on the board’s radar, company secretaries can help prevent initiatives from becoming mere lip service.

Documentation and Disclosure

Regulators and investors are increasingly demanding accurate, consistent, and verifiable ESG data. Company secretarial services, which include managing corporate records and regulatory filings, are directly applicable to ESG reporting.

Company secretaries can gather information from across the business, verify it, and present it in formats that meet external requirements. For instance, Singapore Exchange (SGX) listed companies are already required to publish sustainability reports, with regulations becoming more stringent. Company secretaries can coordinate this process, establish workflows for collecting ESG metrics, work with external auditors, and ensure that public disclosures align with internal data.

Policy Implementation

Turning ESG commitments into actionable policies is another area where company secretaries add value. They are experienced in drafting policies, getting them approved, and ensuring compliance.

Whether it’s drafting environmental policies, creating codes of conduct, or establishing whistleblowing procedures, company secretaries can adapt their policy implementation skills to ESG initiatives. They can monitor compliance and report back to the board when issues arise, ensuring that ESG policies are not just written but also enforced.

Stakeholder Engagement

ESG strategies involve a broader range of stakeholders than traditional governance. Company secretaries, who already manage relationships with key stakeholders like regulators and shareholders, can extend their coordination role to include ESG stakeholders.

They can organize stakeholder consultations, handle ESG-related inquiries, and maintain communication channels to keep different groups informed. This holistic approach ensures that all stakeholders are aligned with the company’s ESG goals, fostering a more cohesive and effective strategy.

Risk Identification

Company secretaries are not just paper pushers; they are proactive problem solvers. ESG introduces new types of risk, such as reputational risk from environmental incidents, legal risk from regulatory changes, and operational risk from supply chain issues.

Company secretaries, with their broad view of the business, can identify these risks early. They can flag unmet ESG commitments, alert directors to regulatory changes, and ensure that risk committees have ESG on their agendas. This early warning system is a critical component of effective governance, helping to mitigate potential issues before they escalate.

Why Entrust Stands Out

Not all company secretarial services providers recognize the connection between ESG and corporate governance. Many still view their role as purely administrative. Entrust, however, understands that modern corporate governance and ESG are intertwined.

Entrust’s team goes beyond document filing to help companies build governance structures that support long-term sustainability goals. They provide ongoing support, helping to set up board processes, establish reporting frameworks, and create accountability systems that work. By partnering with Entrust, companies can ensure that their governance infrastructure is aligned with their ESG objectives.

Practical Steps for ESG Integration

To leverage your company secretary’s support for your ESG strategy, consider the following steps:

• Include ESG in board agendas regularly, not just annually. Have your secretary schedule these items and prepare briefing materials.
• Establish clear ESG reporting lines. Your secretary should know who owns each piece of ESG data and how it flows up to the board.
• Document your ESG commitments properly, treating them like any other corporate policy with proper approval processes and version control.
• Create feedback loops. Your secretary should report back on ESG progress, not just collect data.
• Connect ESG to risk management. Ensure your secretary has visibility into how ESG risks are identified and managed.

Conclusion

While company secretary Singapore may not single-handedly solve global challenges like climate change or inequality, they play a vital role in building the internal systems that enable effective ESG strategies. ESG succeeds when it is embedded in the company’s operations, and company secretaries are uniquely positioned to facilitate this integration. If you are serious about ESG, recognize the pivotal role your company secretary can play in your governance infrastructure.