Standard CAN/BNQ 9700-700
Strategic Integration of ESG Factors into Business Practices — Management Framework and Indicators

Large companies and financial institutions are now required to demonstrate to investors that they manage their environmental, social and governance (ESG) impacts. To limit their own risks, they increasingly require their suppliers and partners, most often small and medium-sized enterprises (SMEs), reliable information and indicators related to ESG practices. The pressure of compliance, already noticeable, is therefore quickly spreading throughout the entire value chain: it is time for Canadian organizations to prepare.

The purpose of draft standard CAN/BNQ 9700-700 Strategic Integration of ESG Factors into Business Practices — Management Framework and Indicators is to provide a management framework for companies in all sectors of activity to support them in integrating environmental, social, and governance (ESG) factors into their business practices in order to help them assess, improve, and communicate their overall sustainability performance, including the reduction of greenhouse gas (GHG) emissions.

This management framework includes a strategy that aims to help companies:

• understand their organizational and business context; 
• ensure management commitment, clearly define roles and responsibilities, and establish policies;
• identify relevant ESG factors, assess the risks and opportunities they present, set priorities, and define a coherent action plan;
• put in place the appropriate resources;
• operationalize the planned actions in the company's activities;
• ensure rigorous performance monitoring; 
• put in place mechanisms for continuous improvement.

This draft standard provides a classification based on three levels of maturity to enable companies to adapt their approach to their capacity and progress over time. It is has been developed to serve as a reference document for compliance assessment activities.