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Table of Contents

Carbon and Beyond: How to Take a Holistic Approach to ESG Management. . . . . . . . . . . . . 3

Get Ahead of Emerging Supply Chain Risks and Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . 4

Shift the Focus from Carbon to Climate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Prioritize Community. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Stay on Top of Regulatory Changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Set Yourself Up to Go Beyond Carbon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

About Equilibrium. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

About FiscalNote ESG Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

02
Carbon and Beyond:
How to Take a Holistic
Approach to ESG Management
The term “ESG” has become synonymous with carbon accounting and tackling GHG
emissions. Even when it comes to the “E” of ESG, carbon is just the tip of the iceberg
— environmental impact reaches far beyond greenhouse gases. Biodiversity, for
instance, is a crucial piece of the environmental puzzle, and has been gaining ground
recently. Within the “S” category, workplace human rights violations continue to take
center stage in mainstream media, and more firms now understand the importance
of engaging with local communities. And even from a “G” perspective, uncertain
economic times and high-profile company takeovers make good governance a top
priority for organizations.

ESG covers a vast array of concerns — and while no company can address
everyone on the list, the ability to identify material ESG issues across the spectrum
and take action quickly can mean the difference between success and failure. Read
on for the top steps for taking proactive action across every category of ESG.

03
Get Ahead of Emerging Supply
Chain Risks and Opportunities
“
For years, most reporting businesses have simply
“reacted” to Scope 3 issues, such as supplier
controversies, rather than taking a proactive approach.
But as organizations face mounting pressure
to produce more detailed disclosures and take
responsibility for every piece of their value chain,
anticipating emerging risks and opportunities among
their suppliers is now critical. What’s more, Scope 3
requires far more than a carbon-based approach: with
public concern around labor practices, human rights,
and community relations on the rise, failing to look
beyond GHG emissions can be a costly error.
Ultimately, staying ahead of the curve
with ESG allows you to easily keep track of
regulations and quickly adapt to the standards
and frameworks required by investors. A
history of reporting will make adapting to
new regulations or standards far easier, and
the ability to benchmark suppliers makes it
easier to spot risks, opportunities, and report
on scope 3. For example, if you are already
reporting to CDP and developing a TCFD
report, it will be far easier to comply with SEC
requirements once finalized.
Elizabeth Tutino
Sustainability Product Research Lead,
FiscalNote ESG Solutions
04
Get Ahead of Emerging Supply
Chain Risks and Opportunities

Action steps:
¤ Benchmark across your supply
chain to identify material risks
and opportunities among your
suppliers, and monitor supplier
ESG progress

¤ Stay up to date with industry

changes, upcoming policy
changes, and market shifts

¤ Work closely and strategically

with suppliers and bring them
on board early for upcoming
regulatory requirements

05
Shift the Focus from
Carbon to Climate

The “E” of ESG is likely to dominate for some time;

but it’s important not to equate “E” with “emissions.”
Emissions reduction may be the defining global
challenge of the 21st century, but responsible
stewardship over nature extends further than
greenhouse gases and rising temperatures.
“ The raw data for categories such as waste
and water doesn’t always perfectly translate
to GHG emissions. Maybe your waste or water
Biodiversity, waste, water, and broader ecological amounts are significant, but the emissions from
impacts need to become a central part of your these activities are small — focusing only on
reporting. Biodiversity in particular has risen in emissions would mean missing an opportunity
popularity in recent years, and the Taskforce to reduce water usage and waste and make a
on Nature-related Financial Disclosures (TNFD) greater environmental impact overall.
framework is currently in beta.
Elizabeth Tutino
Companies that conduct thorough assessments Sustainability Product Research Lead,
to define material environmental topics outside of FiscalNote ESG Solutions
emissions will be better placed to comply with these
regulations. They will also form a more meaningful
picture of their broader ecological footprint.

06
Shift the Focus from
Carbon to Climate
Action steps:
¤ Define material, non-carbon
topics by conducting a
materiality assessment
with internal and external
stakeholders, including external
ESG and environmental advisors

¤ Identify upcoming ESG

regulations that may impact
your company and require
environmental data outside of
carbon and GHG emissions

¤ Get the proper mechanisms in

place for collecting data on non-
carbon environmental impact

¤ Use the right platform to store

and manage all climate-related
data in the same place in order
to get a clear view of your
environmental impact

07
Prioritize
Community
Community and people are essential to the ESG
“
narrative. Even within the “E” category, it can be
argued that climate change is a human rights concern,
and it is typically those communities already facing
disadvantages that will be most impacted by it.
Climate impacts aside, “sustainability” refers not just
to environmental matters but also to ethical business
practice. Transitioning to environmentally positive
business practices is essential, but it must be done
without causing additional harm in the process. The
“S” and “G” of ESG are likely to become even more
important to consumers, investors, and regulators in
the coming years, so it’s wise to start early.
The companies that focus solely on carbon will
miss out on the social and governance issues
that are part of broader transition risks. These
risks can significantly impact the health of
your company; for example, mismanagement
of human rights in your own operations
or throughout the value chain creates
reputational risk, which can have significant
financial repercussions on future operations.
Wu Sining
Head of ESG Advisory, APAC,
FiscalNote ESG Solutions
08
Prioritize
Community
Action steps:
¤ Talk to ESG experts and advisors about
Social and Governance matters. Many
sustainability professionals are well-versed
in environmental topics, but “S” and “G”
domain knowledge can be a rare find

¤ If you are not already reporting on Social

and Governance matters, look to existing
reporting frameworks such as GRI and
SASB, as well as competitor ESG reports,
for information about the kind of “S” and
“G” information currently being tracked and
reported in your industry

¤ Improve data collection on Social and

Governance metrics. Assess the current
state of your data and find a platform
that supports the entire spectrum of ESG
information. Put data mechanisms in place
to collect key metrics

¤ Align with suppliers, departments, and

leaders on the “S” and “G” goals and
consider making a public commitment
that sits separately from your net zero or
climate ones.

09
Stay on Top of
Regulatory Changes
Although regulatory changes in the ESG space are
frequent, they don’t happen overnight. Yet despite the
“
months and years they may have to prepare, many
companies adopt a “we’ll deal with it later” approach
and drastically increase their risk exposure as a result.
Several new global regulations mandate reporting
across climate impacts, and social and governance
issues. For example, in 2020, the SEC began requiring
listed companies to disclose material information
on human capital resources. We can anticipate that
social and governance issues will only become more
prominent in future regulatory requirements, which
are growing in number every year. Companies that
anticipate and get ahead of regulatory changes
reduce their liability and open the door for competitive
advantages and strategic opportunities.
FiscalNote ESG’s advanced platform and
advisory team are always up to date on the
latest reporting requirements and regulations,
as well as key reporting trends. This allows
us to provide our clients with best-practice
reporting guidance, and help them produce
sustainability reports that meet all their
regulatory requirements.
Wu Sining
Head of ESG Advisory, APAC,
FiscalNote ESG Solutions
10
Stay on Top of
Regulatory Changes

Action steps:
¤ Work closely with suppliers and
leaders ahead of time, ensuring
you receive the buy-in and budget
to prepare for compliance

¤ Get your data in order and

ensure key stakeholders are kept
in the loop with data exports,
reports, customized dashboards,
and updates

¤ Rely on technology to stay abreast

and be notified of upcoming
regulatory and policy changes

11
Set Yourself Up to
Go Beyond Carbon
Going beyond carbon in your approach to ESG requires broadening
your perspective and thinking ahead to what’s coming. Harnessing
the power of technology and expert guidance can help you
to get ahead of emerging risks, spot opportunities early,
improve the quality and management of your data, and
streamline your reporting. Ultimately, a holistic
view of ESG is crucial in the world of modern
business, where the responsibility of private
companies extends far beyond their
bottom line.

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About
Equilibrium
Equilibrium AI offers ESG teams the ability to
manage all their data in a centralized, clutter-free
platform. With Equilibrium, you can:

¤ Manage, measure, audit, report, and improve

ESG decisions and outcomes for your
organization and supply chain

¤ Evolve your ESG strategy and turbocharge

data management and reporting

¤ Drive better decisions and elevate the roles of

ESG across your organization

Interested in learning more?

Talk to a member of our team to see Equilibrium in action.

REQUEST A DEMO

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 Creating positive outcomes for the planet and its people.

At FiscalNote ESG Solutions, we empower organizations to take charge of their ESG strategy through
technology and expertise. FiscalNote ESG Solutions brings together a combination of an award-winning
platform (Equilibrium), a global advisory service, essential ESG intelligence and a peer community. From
helping leading companies measure and manage their carbon footprint, tackle DEI goals, and track ESG
regulation, to creating a holistic ESG strategy. FiscalNote ESG Solutions is the best-in-class destination
to achieve your ESG goals.

Learn more

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FiscalNote is the premier information services company focused on global policy and market
intelligence. By combining AI technology, expert analysis, and legislative, regulatory, and geopolitical
data, FiscalNote is reinventing the way that organizations minimize risk and capitalize on opportunity.

FiscalNote empowers more than 5,000 clients worldwide to monitor, manage, and act on the issues
that matter most to them.

To learn more about FiscalNote and its family of brands, visit FiscalNote.com and follow @FiscalNote.

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