ESG (Environmental, Social & Governance) considerations have become imperative for businesses and investors worldwide, especially amidst global challenges like climate change, social inequality, and health crises. According to Governance & Accountability (G&A) Institute’s 2021 report, over 90 percent of S&P 500 companies and around 70 percent of Russell 1000 companies now release ESG reports in some capacity. Additionally, the ESG Global Study conducted by Harvard in 2022 revealed that nearly six out of ten global investors (59%) are fully integrating ESG factors into their investment processes. This shift underscores the undeniable importance of ESG factors in business decisions.

In Mongolia, the business landscape is adapting to this global trend, with the adoption of ESG Disclosure and Reporting Requirements by the Financial Regulatory Commission. This adoption extends to various entities, including public companies listed on the Mongolian Stock Exchange, insurance firms, non-banking financial institutions, and investment companies, following guidelines established in 2022.

At the OLOLT Center, a commitment to advancing sustainable development and responsible business practices is paramount. To underscore this commitment, the OLOLT Center has become the first national organization in Mongolia to join the Global Reporting Initiative (GRI) Community. This pivotal decision highlights dedication to promoting internationally recognized ESG practices. By aligning with global and national ESG frameworks and standards, the OLOLT Center is enabling Mongolian private sector entities to navigate the constantly evolving ESG landscape with assurance. Through collaborative efforts and the adoption of best practices, the center is catalyzing positive change for businesses and communities across the nation.

Crafting an effective ESG policy involves several key steps: understanding ESG issues, engaging stakeholders, conducting materiality assessments, and setting goals for integration into long-term business strategies.

At the OLOLT Center, our aim is to assist national companies in developing customized ESG and sustainability policies by conducting thorough materiality analysis. We ensure adherence to comprehensive international sustainability reporting standards such as GRI, which encompass environmental, economic, and social impacts. Leveraging our expertise in risk and impact assessment, as well as GHG accounting, our consultancy service offers holistic support to companies seeking to integrate ESG principles into their business strategy and operations.

Benefits of ESG Policy & Strategy

Embracing an ESG policy and strategy doesn’t just benefit the bottom line; it’s about building a stronger connection with our community and the world around us. When we communicate our values and commitments clearly, it’s not just business – it’s about trust, loyalty, and making a positive impact together.

By addressing ESG aspects, we’re not just managing risks; we’re protecting what matters most to us – our reputation and the well-being of those we serve. And when we streamline our operations and use resources more efficiently, it’s not just about cutting costs – it’s about sustainability and doing our part for the planet.

Our commitment to ESG isn’t just a strategy; it’s who we are. It’s about showing the world that we’re not just in it for profit; we’re in it for the long haul, building a legacy of integrity and responsibility. And as we do, we attract like-minded investors who see the value in supporting businesses that prioritize people and planet alongside profit.

Auditing is significantly important as the information disclosed needs to be credible and well documented, so stakeholders are able to make informed decisions.

By conducting third-party auditing and verification, it enhances the reliability of information disclosed by companies to investors and other stakeholders.

Our Auditing and Verification Service offer ensures that statements documented in reports are accurate and true, based on the material topics identified by organizations and in accordance with the GRI standard.

Benefits of Auditing & Verification:

• Enhanced Credibility: Independent verification of financial statements and performance metrics adds credibility to company reports and disclosures, increasing trust among stakeholders.
• Improved Transparency: Auditing and verification processes ensure that information provided to stakeholders is accurate, complete, and transparent, enhancing accountability and integrity.
• Risk Mitigation: Identifying and addressing errors, inconsistencies, and compliance gaps through auditing helps mitigate financial, operational, and reputational risks.
• Compliance Assurance: Audits ensure adherence to regulatory requirements and industry standards, reducing the likelihood of penalties, fines, or legal issues.
• Stakeholder Confidence: Through verified data and transparent processes, auditing builds confidence among investors, customers, employees, and regulatory bodies, fostering long-term relationships and sustainability.