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What are the Verde Impact™ ESG Building Blocks?

The Verde Impact™ ESG Building Blocks platform includes foundational offerings that embed ESG principles and oversight into corporate and board governance.

Companies seeking to lead in the ESG space—from emerging private companies (EmCos) to public companies (PubCos)—know that they must build from the ground up and that means rooting core principles into foundational governance and developing a strategy. We are asked frequently for corporate policies and board governance documents that reflect ESG responsibilities and oversight, so we are delivering Building Blocks. 

Building Blocks is a solutions-based platform that leverages our decades of experience in corporate governance—the “G” in ESG—and in launching programs to guide purpose-driven companies to adopt relevant materials that underscore their commitment to environmental, social and governance best practices. 

The Building Blocks platform offers the following stepped modules to guide you in establishing best-practice ESG governance and strategy:

Building Block 1 is a module of document templates and represents the first step in embedding ESG into the company management responsibilities and operations. This requires filling gaps and updating corporate policies and statements to be fit-for-purpose. We’ve provided 12 key ESG Policies and Statements to build a strong foundation for ESG corporate governance.

We’ve also included an ESG Blueprint Template, which is a principles-based document that functions to highlight your company’s ESG approach and foundations. The ESG Blueprint is a complement to your ESG Policy and Statements. Companies typically tailor and share their ESG Blueprint with stakeholders as they see fit.

This module is geared towards EmCos. The templates should be customized as needed to a company’s specific operations, processes and goals, as well as the applicable governing authorities.

Building Block 1: ESG Corporate Governance — Policies and Statements Bundle

Building Block 2 is a module of document templates and is geared toward building the ESG Board Oversight function. This includes one document suite specifically for EmCos for you to customize to your business needs. 

Note that many EmCos chose to follow relevant NYSE rules as a governance best practice. PubCos are subject to additional securities laws and regulations, SEC requirements and the rules of the exchange upon which the company’s registered securities are listed (e.g., NYSE or NASDAQ).

Best practices for board governance incorporate relevant ESG provisions into respective committee charters. This module also provides an ESG Board Governance Roadmap which illustrates how specific ESG board oversight responsibilities are aligned to the respective charters. 

The templates should be customized as needed to a company’s specific operations, processes and goals, as well as the applicable governing authorities.

Building Block 2:
ESG Board Governance — EmCo Bundle

Building Block 3 is a module of document templates and is geared toward building the ESG Board Oversight function. This includes one document suite specifically for PubCos (US-registered) for you to customize to your business needs.

PubCos are subject to additional securities laws and regulations, SEC requirements and the rules of the exchange upon which the company’s registered securities are listed (e.g., NYSE or NASDAQ). Note that many EmCos chose to follow relevant NYSE rules as a governance best practice.

Best practices for board governance incorporate relevant ESG provisions into respective committee charters. This module also provides an ESG Board Governance Roadmap which illustrates how specific ESG board oversight responsibilities are aligned to the respective charters.

The templates should be customized as needed to a company’s specific operations, processes and goals, as well as the applicable governing authorities.

Building Block 3:
ESG Board Governance — PubCo Bundle

Who needs the ESG Building Blocks?

— Does your existing corporate governance include ESG provisions and responsibilities? 

— Does your board have clear oversight of ESG issues? 

If not, the ESG Building Blocks platform might be your solution. Many companies don’t know where to start. Governance is always the jumping off point—and good ESG governance best positions your company to manage risk and to highlight your commitments as a responsible business.

Why do companies implement the ESG Building Blocks?

  • Investor expectations for EmCos (even pre-commercial), particularly those for ESG/socially responsible funds

    Shareholder pressure and inquiries for ESG governance are commonplace and an increasing basis for shareholder resolutions

    Ratings agencies score ESG factors and assess corporate governance

  • Good governance is the key to effective management and effective boards

    Baseline for reporting and compliance, particularly given the evolving global regulatory and standards framework

    Positive engagement with stakeholders, including customers, community, employees, regulators and investors/shareholders 

  • Initial step needed for establishing ESG priorities and guiding development of ESG initiatives

    Corporations have to respond to various due diligence requests during their lifecycle (from investors in a Series A to regulators in an IPO) and governance is always pivotal

  • Walking the talk and weaving climate, stewardship, diversity, inclusion and other core principles into corporate culture

    Underscores a clear company commitment to ESG

Corporate governance is the framework of policies, guidelines and processes derived from applicable laws, regulations, rules and standards that (a) guide how a company is directed and controlled, and (b) inform a company’s management and oversight practices, decision-making and culture.

The five pillars of good governance are:

  • Accountability

  • Fairness

  • Responsibility

  • Risk Management

  • Transparency

Corporate Governance Basics