Master ESG Compliance: Key Standards for Businesses in Peru

As the global focus on sustainability intensifies, understanding and implementing Environmental, Social, and Governance (ESG) standards has become essential for businesses operating in Peru. The year 2024 brings new regulations and expectations that companies must navigate to ensure compliance and drive sustainable growth. This blog delves into the key ESG standards for businesses in Peru and offers practical insights for successful implementation.

Understanding ESG Standards

ESG standards encompass a wide range of practices that address environmental sustainability, social responsibility, and corporate governance. In Peru, these standards are increasingly influenced by both national regulations and international guidelines. Businesses that adhere to ESG criteria demonstrate a commitment to ethical practices, risk management, and long-term value creation.

Environmental Standards

1. Carbon Emissions and Climate Action

Peru is committed to reducing its carbon footprint as part of its climate action initiatives. Businesses are required to:

• Monitor and Report Carbon Emissions: Companies must regularly track and report their greenhouse gas emissions. This involves setting emission reduction targets and adopting strategies to achieve them.
• Participate in Climate Programs: Engage in national and international climate programs aimed at reducing environmental impact and contributing to global climate goals.

2. Resource Management and Efficiency

Efficient resource use is critical in Peru's environmental strategy:

• Water and Energy Conservation: Implement practices to minimize water and energy consumption. This includes using energy-efficient technologies and adopting water-saving measures.
• Waste Management: Develop and enforce waste management protocols, including recycling and proper disposal of hazardous materials.

3. Environmental Impact Assessments

To mitigate potential environmental impacts, businesses are required to:

• Conduct Regular EIAs: Perform Environmental Impact Assessments for new projects and operations. This helps identify and address potential environmental risks.
• Implement Mitigation Measures: Based on EIA findings, businesses must take appropriate actions to minimize adverse environmental effects.

Social Standards

1. Labor Rights and Fair Practices

Ensuring fair labor practices is essential for social responsibility:

• Adhere to Labor Laws: Comply with Peru's labor regulations, including fair wages, safe working conditions, and workers' rights.
• Promote Workplace Safety: Implement health and safety measures to protect employees and reduce workplace accidents.

2. Community Engagement and Development

Businesses are encouraged to contribute positively to local communities:

• Support Community Initiatives: Engage in community development projects and support local causes that align with business values.
• Foster Positive Relationships: Build strong relationships with local stakeholders and address community concerns proactively.

3. Diversity and Inclusion

Creating an inclusive workplace is a key social responsibility:

• Implement Diversity Policies: Develop and enforce policies that promote diversity and inclusion in hiring, promotion, and workplace culture.
• Address Discrimination: Actively work to prevent and address any form of discrimination within the organization.

Governance Practices for Effective ESG Compliance

1. Transparent Reporting

Transparency in reporting is crucial for governance:

• Follow Reporting Standards: Adhere to global reporting standards such as the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB).
• Regularly Disclose ESG Performance: Provide accurate and timely disclosures on ESG performance and practices to stakeholders.

2. Ethical Business Practices

Ensuring ethical conduct is fundamental for good governance:

• Establish Codes of Conduct: Implement codes of ethics and conduct to guide business practices and decision-making.
• Prevent Corruption: Develop anti-bribery and anti-corruption policies to maintain integrity and trust in business operations.

3. Board Oversight and Accountability

Effective oversight ensures compliance and strategic alignment:

• Engage the Board: Involve the board in setting and overseeing ESG goals and policies.
• Monitor Compliance: Regularly review and monitor ESG compliance and performance to ensure alignment with regulatory requirements.

Practical Tips for Achieving ESG Compliance in Peru

• Stay Informed: Keep up-to-date with the latest ESG regulations and standards in Peru.
• Invest in Training: Provide training for employees on ESG practices and compliance requirements.
• Seek Expert Advice: Consult with ESG experts of Ongresso to develop and implement effective strategies tailored to your business needs.

How is ESG Measured in Peru?

In Peru, ESG (Environmental, Social, and Governance) performance is assessed through a combination of regulatory frameworks, industry standards, and government initiatives.

• Environmental: Peru evaluates environmental performance through compliance with regulations such as the Environmental Impact Assessment (EIA) requirements. Companies are required to report their environmental impact and adhere to sustainability practices. The government also supports green certifications and incentives for businesses that adopt renewable energy or reduce their carbon footprint.
• Social: Social performance is measured by adherence to labor laws, community engagement, and social responsibility initiatives. Metrics include compliance with fair labor practices, investment in employee health and education, and contributions to local development projects. The Peruvian government monitors these aspects through labor inspections and social audits.
• Governance: Governance is assessed through adherence to anti-corruption laws, transparency requirements, and corporate governance practices. Key indicators include the implementation of anti-corruption measures, disclosure of financial and operational information, and the establishment of ethical business practices. Peru’s regulatory bodies enforce these standards, ensuring that businesses operate with integrity and accountability.

By aligning with these measurement criteria, businesses in Peru can demonstrate their commitment to ESG principles and benefit from improved regulatory compliance and market reputation.

Why Choose Ongresso for ESG Sustainability Consulting?

Ongresso stands out as a leading partner in ESG sustainability consulting by offering a blend of deep expertise and tailored support to help companies excel in the Peruvian market. At Ongresso, you can expect:

• Customized ESG Solutions: Our consultants deliver tailored ESG strategies that address regional needs, promote sustainable growth, and ensure adherence to local regulations.
• Regulatory Compliance and Risk Management: Leveraging our extensive experience, we guide companies through regulatory challenges and ensure smooth operations within Peru’s legal framework.
• Comprehensive ESG Reporting: Ongresso ensures your compliance with rigorous reporting standards, including those set by the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB).
• Expertise in Peru’s Environmental Regulations: Our knowledge of Peru’s specific environmental guidelines, as outlined in national policies, positions us as leaders in advising on eco-friendly investments and practices.

Partnering with Ongresso for ESG sustainability consulting means aligning with a team dedicated to fostering a sustainable future. Our comprehensive approach, local expertise, and commitment to excellence make us the ideal choice for companies seeking to enhance their ESG performance in Peru.