Free template
A free ESG policy template in Word with environmental, social and governance commitments, measures, owners and reporting, ready to adapt and approve.
By Christopher Fagan, Managing Partner, PEF Consulting Partners
A note before you start
An ESG policy is easy to write and easy to ignore. The useful ones make a small number of specific commitments, name who is responsible for each and say how progress will be reported. Customers and lenders increasingly ask for the evidence behind the words, so only commit to what you can measure.
Christopher Fagan, Managing Partner, PEF Consulting Partners
Adapt each section to what you actually do and can evidence. Name a board member as accountable and an owner for each commitment. Link the policy to your carbon reduction plan, modern slavery statement and any reporting you already produce. Approve it at board level, publish it and review it every year.
[Organisation name] | Version 0.1 | [Date] | Owner: [Name, role]
[This policy sets out how [Organisation name] manages its environmental, social and governance responsibilities. It applies to all employees and operations and, where stated, to our suppliers.]
| Commitment | Measure | Owner |
|---|---|---|
| Reach net zero by [year] and publish a carbon reduction plan | Scope 1, 2 and 3 emissions (tCO2e) | |
| Reduce energy use and buy renewable electricity | Energy use (kWh) and share renewable | |
| Reduce waste and increase recycling | Tonnes of waste and recycling rate |
| Commitment | Measure | Owner |
|---|---|---|
| Provide a safe and healthy workplace | Accident rate and near misses | |
| Treat people fairly and pay fairly | Pay gap and living wage status | |
| Prevent modern slavery in our operations and supply chain | Supplier assessments completed | |
| Support our communities | Volunteering hours and social value delivered |
| Commitment | Measure | Owner |
|---|---|---|
| Act with integrity and prevent bribery | Training completion and incidents | |
| Protect personal data | Breaches and DPIAs completed | |
| Manage ESG risks at board level | Board reviews each year |
| Role | Responsibility |
|---|---|
| Board | Approves the policy and oversees performance |
| Accountable director | |
| ESG lead | |
| All employees |
[We will report progress every year in [our annual report or sustainability report] and review this policy annually.]
| Name | Role | Signature | Date |
|---|---|---|---|
Template by PEF Consulting Partners, pefconsultingpartners.co.uk. Free to use and adapt.
Related reading: the carbon reduction plan template, ESG reporting explained, ESG consultancy and compliance.
A board approved statement of how a business manages its environmental, social and governance responsibilities, with specific commitments, owners and how progress is reported.
There is no general legal requirement, but customers, public sector buyers, lenders and investors increasingly ask for one, often alongside a carbon reduction plan.
Its purpose and scope, specific environmental, social and governance commitments with measures and owners, roles and responsibilities, and how progress will be reported and reviewed.
The policy states commitments and responsibilities. The strategy explains the priorities, targets, investments and plan that will deliver them.
If customers are asking for ESG evidence you do not yet have, start with a short policy you can stand behind and build the data to support it.