Environmental, Social and Governance principles have become critical for Commonwealth agencies as 6000 government entities will soon be required to meet new climate-related reporting standards.
While this will require a major shift in thinking for some, it presents an opportunity for government to improve its public standing, boost its operational efficiency and attract purpose-driven talent.
While many government agencies have traditionally focused more on the social and governance aspects of ESG, the environmental dimension is rapidly gaining prominence, driven by the urgent need to address climate change and its associated risks.
ESG isn’t a box to tick, it’s a compass.
It can guide government agencies beyond mere compliance towards resilience, public trust, and a sustainable future.
Featured in this article
-
Sharon Reay
Senior Advisor
-
Dannya Hu
Expert Advisor, Team Lead – Organisational Design, Team Lead – Business Process Improvement
Published
9 October 2024
Driving innovation
Embracing ESG is about innovation, risk management, and aligning with global sustainability efforts.
It is a framework that encourages organisations to think about their impact on environment, society and how they are governed.
It is an opportunity to lead by example.
While ESG originated in the private sector, it has gained relevance in the public sector, including government agencies, as the Australian Public Service strives to meet Net Zero climate targets by 2030 and prepares to increase reporting obligations through initiatives like the Commonwealth Climate Disclosures.
ESG provides a structured framework for agencies to reduce their environmental impact, enhance energy efficiency, and transition to sustainable practices, all of which are crucial for achieving the ambitious APS Net Zero target.
ESG principles support compliance with the Public Governance, Performance and Accountability Act and strengthen the focus on integrity, transparency, and ethical conduct in government operations.
A variety of benefits
Beyond these immediate drivers, ESG offers numerous additional benefits.
It can spur innovation and lead to the adoption of more efficient and cost-effective technologies and practices, ultimately benefiting both the agency and the public it serves.
The next generation of employees is increasingly seeking purpose-driven workplaces. A focus on ESG can make government agencies more appealing to top talent who value sustainability and social responsibility.
By systematically considering environmental, social, and governance factors, agencies can identify and proactively address potential risks, enhancing their resilience and adaptability.
The growing emphasis on ESG in both the private and public sectors, positions Australian government agencies to align with international best practices and contribute to global sustainability efforts.
Getting started
While adopting an ESG strategy might seem daunting, several practical can facilitate the transition.
The first step is to develop an ESG policy or framework to guide the agency’s efforts, identify and assess environmental, social, and governance risks and pinpoint areas for improvement.
Once this has been done, agencies can conduct a “materiality assessment” to determine the most crucial ESG areas for your agency. Develop an action plan based on these priorities.
Agencies that fall under the first phase of environmental reporting, should familiarise themselves with the requirements and start collecting necessary data.
Seek support
While many agencies possess expertise in certain ESG areas, like social and governance practices, developing a comprehensive ESG strategy can be complex.
Consider partnering with experts who can provide tailored guidance and support.
Proximity is committed to ESG principles. We have achieved net-zero emissions for FY24 and have a robust ESG framework in place.
The Proximity team includes specialists in ESG strategy, reporting, and implementation who can help you navigate ESG complexities and build a sustainable future for your agency.
The Proximity Day Out, at Hotel Realm in Canberra on Tuesday 25 February 2025 is Proximity’s biggest professional development day of the year. It includes sessions on ESG and Climate Compliance: Essential Preparations for Upcoming Mandatory Disclosures.
Some of the nation’s most experienced senior public servants and private sector leaders will share their experiences and advice to help drive innovation and prepare organisations for the future and share insights on building the systems, processes, and the governance structures needed to stay ahead of the curve.
Proximity Day Out focuses on topics that are current, disruptive, and forward-thinking in the consulting, legal and commercial sectors, including:
- Artificial Intelligence
- Ethics
- Admin Law
- Contract Management
- Procurement
- Probity
- Strategic Partnerships
- Project Management
- ESG & Climate Compliance
Register your interest in the Proximity Day Out 2025 here – Proximity: Register your interest in receiving event details for the Proximity Day Out 2025
The next generation of employees is increasingly seeking purpose-driven workplaces. A focus on ESG can make government agencies more appealing to top talent who value sustainability and social responsibility.
