Regulatory and Compliance Awareness (ESG)
Regulatory and Compliance Awareness (ESG) is the understanding and application of ESG-related rules and regulations. It requires the capability to interpret legal requirements, foresee potential risk areas and align company objectives with environmental, social and governance considerations. This awareness helps to minimize non-compliance risks, drive sustainable operations and build trust with stakeholders.
Level 1: Emerging
At a foundational level you are aware that ESG regulations and compliance requirements exist and can identify where they might affect your work. You follow set processes and seek guidance when you’re unsure about ESG-related rules. By doing this, you help reduce compliance risks and support your team’s efforts to work responsibly.
Level 2: Proficient
At a developing level you are starting to recognize key ESG regulations and can identify basic compliance requirements relevant to your work. You seek guidance to interpret more complex rules and understand how your actions link to company ESG goals. This helps you contribute to minimizing compliance risks in your team.
Level 3: Advanced
At a proficient level you are able to confidently interpret and apply ESG regulations and compliance standards to your day-to-day work. You identify potential risks and work with others to ensure business practices align with current ESG requirements. Your actions help the organization manage compliance, avoid penalties and build trust with stakeholders.
Understanding Climate Risk
Understanding Climate Risk is the capacity to interpret and assess the potential threats and impacts influenced by climate-specific variables on operations, investments and stakeholders. It encompasses the knowledge of climate science, output modeling, and the capability to formulate mitigation strategies. This capability is key to decision-making, contributing to the sustainability and resilience of the organization in an ever-evolving environmental landscape.
Level 1: Emerging
At a foundational level you are aware of how climate risks can affect your daily work and understand the basic principles behind climate-related impacts on the organization. You recognize the importance of considering climate factors in organizational decisions and seek guidance when needed. This awareness helps you contribute to a culture of responsible risk management and sustainability.
Level 2: Proficient
At a developing level you are beginning to recognize how climate risks can influence your work and wider organizational outcomes. You can identify basic climate-related threats and seek guidance to understand their relevance to ESG goals and strategy. Your growing awareness helps you support experienced colleagues in managing emerging climate risks.
Level 3: Advanced
At a proficient level you are able to identify climate-related risks and opportunities that could affect your area of responsibility, and use climate science and data to inform your decisions. You consider the impacts on operations, investments, and stakeholders, recommending practical actions to manage risk. Your work improves the organization’s resilience and sustainability in a changing climate.
Supporting ESG Audits
"Supporting ESG Audits" is the expertise in assisting comprehensive, systematic evaluations of an organization's adherence to environmental, social, and governance (ESG) standards. This capability entails an intimate understanding of ESG principles, alongside the proficiency to identify, manage and mitigate potential risks. The impact of mastering this capability results in robust sustainability measures, underpinning a company's reputation and resilience in a risk-prone, regulatory landscape.
Level 1: Emerging
At a foundational level you are aware of basic ESG principles and can support straightforward audit activities by gathering information and following set procedures. You understand the importance of ESG risks and compliance, and know when to seek guidance. Your contribution helps ensure the organization meets minimum ESG requirements and builds a culture of responsibility.
Level 2: Proficient
At a developing level you are able to assist with basic tasks in ESG audits, such as collecting and organizing relevant data or supporting risk assessment activities. You show a clear understanding of ESG standards and can follow guidance from more experienced colleagues. Your work helps ensure audit processes run smoothly and risks are recognized early.
Level 3: Advanced
At a proficient level you are able to support ESG audits by gathering relevant data, identifying compliance gaps, and contributing to risk assessments. You use your understanding of ESG and risk to help monitor processes, flag emerging issues, and suggest practical improvements. Your input enables your organization to respond confidently to audit findings and drive better sustainability outcomes.
Stakeholder Impact Mapping
Stakeholder Impact Mapping is the consistent identification, examination, and evaluation of actions affecting an organization's stakeholders, in regards to ESG & Risk. It involves comprehending the cause-effect relationship between decisions and their societal, environmental, and governance implications. The end goal is to minimize negative impacts, maximize positive outcomes, and strategically manage risk.
Level 1: Emerging
At a foundational level you are able to recognize key stakeholders affected by your team’s ESG and risk decisions. You understand that these actions can have both positive and negative consequences for people, communities, and the environment. With support, you begin to consider these impacts in your day-to-day work.
Level 2: Proficient
At a developing level you are able to recognize and map basic stakeholder impacts within ESG and risk contexts, with guidance. You can begin to connect your team’s actions to potential social, environmental, or governance outcomes, supporting more informed decisions. Your efforts help your team become more aware of stakeholder risks and opportunities.
Level 3: Advanced
At a proficient level you are able to independently map and assess the impact of organizational decisions on key stakeholders through an ESG and risk lens. You consider both immediate and longer-term effects, weighing how actions could influence social, environmental, and governance outcomes. Your analysis helps guide teams to mitigate risks and achieve balanced, positive stakeholder results.
Social Impact Evaluation
Social Impact Evaluation is the process of assessing the societal consequences of a company's operations. It requires knowledge of ESG factors, abilities to measure tangible and intangible impacts, and adeptness in analyzing data. This capability enables companies to manage reputational risk, guide responsible business practices, and drive wider societal change.
Level 1: Emerging
At a foundational level you are able to recognize how your organization’s actions can affect people and communities, both positively and negatively. You understand the basics of ESG and risk, and help collect simple data or feedback for social impact evaluation. Your efforts support more informed and responsible decision-making across the business.
Level 2: Proficient
At a developing level you are beginning to identify and gather basic data on the social impact of your team’s activities, using established methods and guidance. You can recognize obvious risks and opportunities linked to ESG factors, but may need support to analyze complex impacts. Your work helps your team make more responsible choices and highlights areas for improvement.
Level 3: Advanced
At a proficient level you are able to conduct thorough evaluations of your organization’s social impacts using established ESG frameworks and data sources. You identify key risks and opportunities related to social outcomes, and communicate findings clearly to guide decision-making. Your work helps your organization align with responsible business practices, strengthening both its reputation and its contribution to society.
Scenario Planning for ESG Events
Scenario Planning for ESG Events' is a capability used to manage and mitigate potential environmental, social and governance (ESG) risks. This involves the strategic forethought and preparedness to handle emerging ESG scenarios that could impact the organization. The capacity to effectively carry out such planning indicates thorough understanding of risk management, strong adaptability, and foresight.
Level 1: Emerging
At a foundational level you are aware of basic concepts around scenario planning for ESG events and recognize common ESG risks that could affect your work. You gather and share straightforward information to help your team anticipate simple ESG issues. Your actions show a willingness to learn and support responsible risk management within your area.
Level 2: Proficient
At a developing level you are beginning to identify and discuss potential ESG risks in your area, using guidance or support from others. You contribute ideas to scenario planning exercises and help gather relevant information. Your growing awareness helps your team consider ESG impacts and prepare for possible challenges.
Level 3: Advanced
At a proficient level you are able to identify and analyze potential ESG risks that could impact the organization, drawing on data and trends to develop practical response scenarios. You work with key teams to test these plans and ensure readiness for emerging ESG challenges. Your actions help the business adapt and make informed, risk-aware decisions.
Risk Mitigation Planning
Risk Mitigation Planning is the process of identifying and assessing ESG-related risks, then designing strategies to reduce their potential impact. It requires an understanding of potential ESG threats and sharp analytical skills for prediction and assessment. Effective risk mitigation planning shapes risk-resilient practices, guarding an organization against financial loss and safeguarding reputation.
Level 1: Emerging
At a foundational level you are learning to recognize common ESG-related risks and understanding why risk mitigation planning matters. You begin to assist with basic data gathering and help document simple risk scenarios under guidance. Your support helps lay the groundwork for stronger risk management across the organization.
Level 2: Proficient
At a developing level you are able to spot basic ESG-related risks and suggest practical steps to manage them, usually with guidance. You contribute ideas to risk mitigation plans and support colleagues in collecting relevant information. Your efforts help your team reduce smaller risks and build confidence in handling more complex issues over time.
Level 3: Advanced
At a proficient level you are able to identify and assess ESG-related risks, then develop clear and practical mitigation strategies for your projects or areas of responsibility. You apply robust analysis to forecast threats and recommend solutions that are fit for purpose. Your actions help reduce risk exposure and strengthen your organization’s resilience and reputation.
ESG Risk Identification
ESG Risk Identification is the capability of discerning potential ESG (Environmental, Social, Governance) risks that could adversely impact an organization's performance. It demands deep knowledge of ESG matters, an aptitude for analytical thinking and forward-planning behaviors. Effective Risk Identification supports proactive strategies, mitigates risk impact and enhances sustainable growth.
Level 1: Emerging
At a foundational level you are able to recognize basic ESG risks relevant to your role and raise them with your team or manager. You stay alert to issues that could affect your organization, using resources or guidance provided. Your early actions support more experienced colleagues in protecting the business from avoidable ESG risks.
Level 2: Proficient
At a developing level you are able to recognize some common ESG risks and raise them with your team or manager. You use available guidelines and examples to spot issues, but may need support to analyze and prioritize them. Your actions help your team begin to address risks earlier and avoid surprises.
Level 3: Advanced
At a proficient level you are able to identify a wide range of ESG risks relevant to your organization, analyzing both immediate and emerging issues. You use your knowledge to assess how these risks could affect operations and long-term objectives. Your work enables your team to address concerns early and support responsible, sustainable outcomes.
Risk Assessment Techniques
Risk Assessment Techniques' is the benchmark ability to identify, evaluate, and prioritize ESG-related risks. It encompasses the adept use of analytical tools, understanding of regulatory requirements, and interpretation of global sustainability trends. The impact is effective management of potential risks, safeguarding the organization's reputation and contributing to sustainable operations.
Level 1: Emerging
At a foundational level you are learning to recognize basic ESG-related risks in your area of work and report them clearly. You follow established procedures and use simple tools with guidance from others. Your attention to risk helps your team address potential issues early and supports responsible operations.
Level 2: Proficient
At a developing level you are starting to identify and describe basic ESG-related risks within your area of work, using standard assessment checklists or simple analytical tools. You seek advice from others to interpret clear guidelines or emerging trends. Your efforts help your team take early steps to manage risks and maintain good practice.
Level 3: Advanced
At a proficient level you are able to independently apply a range of risk assessment techniques to identify and evaluate ESG-related risks across diverse business areas. You use recognized tools and current regulatory guidance to inform sound risk prioritization and decision-making. Your work helps your organization manage threats effectively and maintain strong environmental, social, and governance standards.
Embedding ESG in Strategy
Embedding ESG in Strategy is the thoughtful integration of environmental, social, and governance aspects into strategic plans. It requires knowledge of ESG principles, skills in strategic planning, and a mindset that is proactive towards risk mitigation. This capability prioritizes sustainable growth and influences business decisions, leading to improved risk management and stakeholder engagement.
Level 1: Emerging
At a foundational level you are aware of the basic principles of ESG and their importance to business risk and opportunity. You recognize key ESG factors and understand how they relate to organizational strategy in simple terms. Your early awareness helps you spot where ESG and risk considerations may fit into daily decisions.
Level 2: Proficient
At a developing level you are starting to recognize the value of ESG in your team’s strategic planning and contribute ideas that reflect basic ESG principles. You seek guidance on identifying ESG risks and opportunities and suggest simple actions to support sustainability goals. Your early efforts help raise ESG awareness and promote responsible decision-making within your area.
Level 3: Advanced
At a proficient level you are able to integrate ESG considerations into strategic planning and decision-making with limited guidance. You actively identify ESG risks and opportunities, ensuring they are factored into business priorities and objectives. Your approach supports sustainable growth and helps the organization meet stakeholder expectations around responsible practice.
Promoting Ethical Business Practices
Promoting Ethical Business Practices' is the ability to advocate for and uphold business behavior that aligns with moral, social and environmental standards. Integral to ESG and Risk management, it requires robust knowledge of regulatory norms and ethical guidelines. This capacity contributes to sustainable growth, risk mitigation and an organization's reputation for corporate responsibility.
Level 1: Emerging
At a foundational level you are learning to identify basic ethical business practices and recognize their importance in ESG and risk management. You begin to follow established guidelines and support ethical decisions in your daily work. By doing this, you help to build trust and contribute to a responsible culture within your organization.
Level 2: Proficient
At a developing level you are beginning to recognize and discuss the importance of ethical, social and environmental standards in your daily work. You seek guidance to ensure your actions align with organizational policies and relevant ESG regulations. Your growing awareness helps reduce risks and shows your commitment to responsible business conduct.
Level 3: Advanced
At a proficient level you are able to identify and address situations where business actions may conflict with ethical, social, or environmental standards. You apply a solid understanding of ESG risks and regulations to guide colleagues towards responsible choices. Your actions help protect the organization’s reputation and support sustainable, compliant business practices.
Participating in Sustainability Initiatives
Participating in Sustainability Initiatives is the aptitude to engage actively in projects and practices that further environmental, social and governance (ESG) objectives. This capability involves understanding sustainability risks and opportunities, supporting green initiatives, and fostering ethical organizational culture. The impact is a proactive, ESG-centered workplace that meets regulatory expectations while driving sustainable innovation.
Level 1: Emerging
At a foundational level you are aware of your organization’s sustainability goals and understand why ESG and risk practices matter. You take part in basic activities that support environmentally and socially responsible behavior, like recycling or following ethical guidelines. Your actions help build a culture where sustainability is valued and encouraged.
Level 2: Proficient
At a developing level you are starting to take part in sustainability initiatives by supporting established ESG projects and learning from colleagues. You recognize basic ESG risks and opportunities relevant to your work, asking questions to deepen your understanding. Your actions contribute to building a supportive culture for responsible and sustainable practices within the organization.
Level 3: Advanced
At a proficient level you are actively involved in sustainability initiatives, confidently supporting ESG projects and integrating sustainable practices into your daily work. You identify and address ESG risks and opportunities, contributing meaningful ideas to improve organizational impact. Your engagement helps build a resilient culture that meets compliance needs and promotes responsible innovation.
Managing Reputational Risk
Managing Reputational Risk is the ability to identify, assess and mitigate reputation-related threats linked to ESG issues. It entails monitoring and evaluating the perception of stakeholders concerning the company's ESG performance. This capability impacts the trustworthiness and overall reputation of the business, influencing key decisions and strategies.
Level 1: Emerging
At a foundational level you are aware of how ESG issues can affect the company’s reputation and recognize simple reputational risks when they are pointed out. You follow guidance to report concerns, helping others to monitor how our actions might impact stakeholder perceptions. Your basic awareness supports the team in protecting the company’s trust and standing.
Level 2: Proficient
At a developing level you are beginning to recognize how ESG issues can affect the company’s reputation and are learning to spot potential risks. You seek guidance when addressing concerns and contribute to monitoring how stakeholders view the business’s actions. Your growing awareness helps support the team in managing reputational risks more effectively.
Level 3: Advanced
At a proficient level you are proactive in identifying and assessing reputational risks linked to ESG issues, using data to monitor stakeholder perceptions and spot emerging concerns. You take the lead in developing and implementing practical mitigation actions. Your work helps build trust and protects the company’s reputation in a changing ESG landscape.
Identifying ESG Risks
Identifying ESG Risks' is the ability to pinpoint potential threats or hazards associated with Environmental, Social and Governance (ESG) factors in a business context. It requires extensive understanding of ESG principles and risk analysis knowledge, aimed at mitigating detrimental impacts on organizational performance, stakeholders, and the broader environment. This capability heavily influences strategic decision-making, ultimately promoting sustainable and responsible business operations.
Level 1: Emerging
At a foundational level you are able to recognize basic examples of Environmental, Social and Governance (ESG) risks relevant to your area of work. You follow clear guidance to flag possible issues and know when to seek advice from others. Your early awareness helps support responsible practices and protect the organization from avoidable problems.
Level 2: Proficient
At a developing level you are starting to recognize obvious ESG risks in your area of work and can raise them with your team or manager. You use basic tools and guidance to identify risks, but may miss less visible or emerging issues. Your contributions help build awareness of ESG risks, supporting more responsible business decisions.
Level 3: Advanced
At a proficient level you are able to recognize and assess a wide range of ESG risks relevant to your business area, using established frameworks and reliable sources. You proactively gather information, analyze potential impacts, and flag concerns to relevant stakeholders. Your actions help guide responsible decisions and support your organization’s approach to managing ESG and risk.
Governance Practices Familiarity
Governance Practices Familiarity' is a critical understanding of the operational practices and procedures for ESG and risk management. This includes knowledge of the legislation, standards, and guidelines relevant to ESG and risk governance. The impact of this understanding allows professionals to effectively identify, assess and mitigate associated risks while maintaining compliance.
Level 1: Emerging
At a foundational level you are aware of the basic governance practices that support ESG and risk management in your organization. You recognize key legislation and guidelines, and understand the importance of following standard procedures. This helps you perform your role compliantly and support the identification and reporting of potential ESG and risk issues.
Level 2: Proficient
At a developing level you are building your understanding of key governance practices, standards, and regulations that guide ESG and risk management. You recognize how these requirements apply in your daily work and are beginning to use them to identify and flag basic risks or compliance issues. This helps you contribute to your team’s efforts to maintain sound governance and minimize risk.
Level 3: Advanced
At a proficient level you are able to apply your understanding of governance practices to ensure ESG and risk management procedures align with current legislation and standards. You confidently identify and address compliance gaps in your area, taking practical steps to mitigate risks. Your actions support consistent and reliable organizational compliance.
ESG Reporting Fundamentals
ESG Reporting Fundamentals is the crucial ability to recognize, analyze, and effectively disclose Environment, Social, and Governance (ESG) and associated risks. It requires thorough understanding of risk management principles and on-point communication skills. This capability helps organizations demonstrate commitment to sustainable operations, enhances investor confidence, and promotes long-term economic viability.
Level 1: Emerging
At a foundational level you are aware of the basic concepts of ESG reporting and understand why disclosing environmental, social, and governance risks matters. You can recognize straightforward ESG risks and help gather essential information for reports. By doing this, you support your organization’s efforts to operate sustainably and build trust with stakeholders.
Level 2: Proficient
At a developing level you are able to identify basic ESG risks and recognize their relevance to your area of work. You gather and organize ESG data with guidance, helping your team meet reporting requirements. Your efforts support clear and accurate disclosures that strengthen trust in your organization’s sustainability commitments.
Level 3: Advanced
At a proficient level you are able to gather, interpret, and clearly present ESG and risk-related data in line with established frameworks and standards. You can identify key issues, collaborate with relevant teams, and communicate findings to both internal and external stakeholders. Your work helps strengthen transparency and ensures the organization’s ESG reporting meets regulatory and stakeholder expectations.
ESG Principles Awareness
ESG Principles Awareness' is the demonstrated knowledge and understanding of environmental, social, and governance (ESG) principles within the context of risk management. It encompasses the ability to identify, analyze, and actively mitigate ESG-related risks. The impact of this capability fosters sustainable decision-making, enhancing corporate reputation and long-term resilience.
Level 1: Emerging
At a foundational level you are aware of basic ESG principles and their relevance to risk management within the organization. You can recognize common ESG risks in day-to-day work and understand why they matter for sustainable decision-making. Your awareness helps support a positive reputation and encourages responsible practice.
Level 2: Proficient
At a developing level you are beginning to recognize how ESG principles relate to risk in your work and can identify basic ESG-related risks when prompted. You show a willingness to learn more and seek advice as needed. This helps you contribute to early discussions about ESG risks, supporting your team’s understanding and awareness.
Level 3: Advanced
At a proficient level you are able to recognize and explain key ESG principles and understand how they affect organizational risk. You identify potential ESG risks in projects or decisions, and propose practical steps to address them. Your actions help the organization make responsible choices and strengthen its reputation for sustainability.
Environmental Impact Consideration
Environmental Impact Consideration is the evaluation of an organization's operations and decisions in relation to their impact on the environment. This capability requires a strong understanding of environmental regulation, the ability to evaluate risk, and implementing eco-friendly measures. It drives the organization's ESG strategy, mitigating risk and enhancing sustainability.
Level 1: Emerging
At a foundational level you are aware of how your actions and decisions at work can affect the environment. You understand basic environmental risks and follow ESG and risk management guidelines as set by your team or organization. By doing so, you support a culture of responsibility and help meet environmental standards.
Level 2: Proficient
At a developing level you are beginning to recognize how your work can affect the environment and you apply basic environmental guidelines to your daily tasks. You seek guidance when considering the environmental impact of decisions and identify straightforward opportunities to reduce risk or improve sustainability. This helps support the organization’s ESG and risk goals in practical ways.
Level 3: Advanced
At a proficient level you are able to assess how your team's decisions and business activities affect the environment, using your understanding of relevant environmental regulations and risks. You identify opportunities to implement practical improvements that support the organization’s ESG and sustainability goals. Your actions help reduce environmental harm and strengthen the organization’s long-term resilience.
