00:00CSR can be a part of the ESG but it is not ESG how you are looking this ESG
00:10thing see ESG and CSR are two different things you have to first understand okay
00:16and I'll give you a reason why people are getting confused with CSR is what you do
00:22for the society outside your walls okay okay corporate social responsibility I
00:26think would have had an overdose in the last two podcasts yeah corporate social
00:29responsibility okay so you you know it right it is what the company does for
00:33for the society simple terms right about the ESG way ESG is environmental social
00:38governance I'll tell you in very simplistic way that you can understand
00:41it CSR is what you do with people time money for the society outside your
00:47company okay ESG has got three components environment social governance environment
00:55means in your business process are you taking care of your waste are you taking
01:02care of low carbon emissions are you a sort of a environmental centric environmental
01:10conscience centric company are you taking care of the environment while operating
01:16your business in your day-to-day operations of your business social is are you taking care
01:22of your employees okay is the gender diversity taken care of are the HR policies ethical this
01:31is social are you taking care of your customers are you taking care of your vendors all stakeholders
01:36and governance is are your board meetings happening transparently are your reports filed on time are
01:46you filing taxes on time are you ethical is your non bribery policy ethical policy in place so
01:53your governance related issues so my school was a Hindu data
01:58as if you are working as a village of houses you first have to see on South Park
02:02you're a LiuMarty going on you are looking at the house you are looking at the house you are
02:08Ouch you are my brother I have to be honest I do not know I'm going to be honest I
02:12did not know
02:12I'm he I am about the problem that people get into' in the understanding of yes you n sees yet
02:16These two teams, ESG teams and CSR teams, are the same.
02:20They are the same?
02:2190% of the times, these teams are the same.
02:25They have additional responsibilities.
02:26And what was the need for ESG?
02:28For ESG, the company doesn't exist.
02:30See, you have to understand this.
02:32So, ESG is not about CSR at all.
02:35It is about how you are managing your own operations.
02:40During your operations of your own company,
02:44are they environmentally sustainable?
02:48Are you taking care of the environment?
02:49Are you taking care of all your stakeholders?
02:53Of employees, to board members, to shareholders, to vendors, to partners, everybody?
02:58And fourth, are your governance policies in place or not?
03:01So, CSR can be a part of the ESG.
03:05But it is not ESG.
03:06It is a completely different domain.
03:09So, CSR is what you are doing for the society.
03:12A part of that society is your workforce, your vendors, your partners, environment, everything.
03:18So, CSR can be a part of ESG.
03:21But CSR is what you do outside your business operations for the society.
03:26There is no derivative in that business.
03:29There is no direct derivative for the business.
03:32But ESG is about how you are running the operations of your company.
03:36And while doing the operations, are you taking care of your social paradigm, your environmental paradigm and your governance paradigm?
03:46So, now the confusion that comes is, usually what companies do?
03:52There are typical boardroom discussions.
03:55If you see any typical, most of the time, if you see annual board report presented to the board, you
04:03will see,
04:04in the first and last 10 pages, CSR and then ESG.
04:10Or then ESG and then CSR reports.
04:13There are two different reports.
04:14But there are both of them together.
04:16That means, one or two pages are further.
04:19So, people are getting confused that there is a very strong correlation between ESG and CSR.
04:26The other point of confusion is, usually what happens in organizations that we have worked with,
04:32and we worked with good 500 plus organizations, we have seen that, ESG teams take care of CSR.
04:40Or CSR teams take care of ESG, which is okay.
04:43But because the team is same, there seems to be an overlap.
04:47There isn't.
04:48But there seems to be a perception of overlap.
04:51And the third is, which is the most important.
04:55Both talk of social impact and sustainability.
05:00So, when you're running, if you're taking care of the environment and doing plantation of trees or A, B, C
05:06projects on the ground.
05:08In CSR, you're still taking care of environmental sustainability.
05:11And in your operations, for example, if you're a paint factory and you're taking care of your discharge,
05:16you're taking care of your waste, you're ensuring the water is not getting out to the rivers,
05:21and you're treating it and reusing it in your own system,
05:23you're sustainable by your practice also.
05:26So, both you're practicing in your operations and outside also you're taking care of environmental sustainability.
05:31So, what happens?
05:32That you tend to talk about sustainability and social impact in both the places, people get confused.
05:36It's the same thing.
05:37It's not the same thing.
05:39Okay.
05:39One is in-house.
05:40One is out-house.
05:41One is out-house.
05:42That's the only principle.
05:43But why ESG isn't talk?
05:45Okay.
05:46Let's assume that I deployed two crore rupees for a woman empowerment project.
05:52The deployment of the money is basically for opening a skill center where women of the area will come
05:59and will be trained on a certain skill set and they will be placed and they will have,
06:05household income will increase and they will.
06:07I do my project phenomenally well and I achieve my goals.
06:11I achieve my impact.
06:12Okay.
06:13Good CSR.
06:15Now, let me come on the other side, insight.
06:18My policies are women discriminatory.
06:23Maternity leaves are not available.
06:30Workplace is not woman friendly.
06:33Pay structures are not at parity in all the genders.
06:41So, I am doing good CSR, but I am doing bad ESG.
06:47Now, let me flip the example.
06:50I am doing CSR good.
06:52Let that part remain same.
06:53But I am taking care of the woman workforce in my organization.
06:58I have strong code of conduct.
07:01I have gender parity.
07:03I have pay parity.
07:05There is no discrimination between hours of working.
07:08And salaries or remuneration or perks between women and men.
07:12And it's the same.
07:13Both are treated equal.
07:15Now, I am good ESG with good CSR.
07:17And ESG audit is something that we do.
07:23It should be done.
07:23So, companies like us go in the company.
07:26We figure out all the documents.
07:27We check out.
07:28We talk to people.
07:29We take data.
07:30We figure out what is happening.
07:31We realize then ESG reports are published separately.
07:34CSR reports are published separately.
07:36Therefore, in any board report, both the reports are separate.
07:39But they will be near to each other.
07:46So, CSR is a part of ESG.
07:49The vice versa is not true.
07:51This is just 1%.
07:53The other 99% is in the full podcast.
07:57Watch it on the channel.
07:58So, let's go.
07:58Let's go.
07:59Let's go.
08:00Let's go.
08:01Let's go.
08:02Let's go.
08:02Let's go.
08:02Let's go.
08:02Let's go.
08:02Let's go.
