How Is Business Continuity Management (BCM) Related to ESG?

BCM (Business Continuity Management) and ESG (Environmental, Social and Governance) are both important management frameworks that help organisations reduce risk and ensure sustainability. Below are some of the links between BCM and ESG

The relationship between BCM and ESG

• Risk management: Both BCM and ESG focus on managing risk. BCM helps an organisation prepare for and respond to serious events that could threaten its survival, while ESG manages risks related to the environment, society and governance.⁠​​‌‌‌‌​​‌​​​​‌​‌‌​‌​‌​‌​‌‌‌‌‌​‌​⁠
• Sustainability: BCM ensures business continuity, helping the organisation keep operating in any situation. ESG aims at sustainable development, ensuring that the organisation operates responsibly towards the environment and society.
• PDCA cycle: BCM under ISO 22301 is based on the PDCA (Plan-Do-Check-Act) cycle, which makes it easy to integrate into existing management systems such as ISO 9001. ESG can also apply the PDCA cycle to continually improve environmental, social and governance activities.
• Integration into management systems: Both BCM and ESG can be integrated into an organisation’s existing management systems, helping to create a more comprehensive and effective management system.⁠​​‌‌‌‌​​‌​​​​‌​‌‌​‌​‌​‌​‌‌‌‌‌​‌​⁠

Overall, BCM and ESG both play an important role in ensuring the sustainability and resilience of an organisation, but from different angles: BCM focuses on the continuity of business operations, while ESG focuses on social and environmental responsibility.

Differences between BCM (Business Continuity Management) and ESG (Environmental, Social and Governance)

BCM (Business Continuity Management)

1. Main objective: To ensure the continuity of business operations in the event of an incident or disruption. To achieve this, a BCM system emphasises the importance of:

– Understanding the Organisation’s needs and the necessity of establishing policies and objectives related to business continuity.⁠​​‌‌‌‌​​‌​​​​‌​‌‌​‌​‌​‌​‌‌‌‌‌​‌​⁠

– The company’s operating and business processes, and its response capabilities and mechanisms for maintaining operations and surviving disasters, events and operational disruptions.

– Monitoring and evaluating the performance and effectiveness of the BCMS

– Continual improvement and refinement, based on qualitative and quantitative assessments.⁠​​‌‌‌‌​​‌​​​​‌​‌‌​‌​‌​‌​‌‌‌‌‌​‌​⁠

Scope: Focuses on identifying and protecting the organisation’s critical products, services, resources and activities.

2. Main activities:

1. 1. Identify critical products and services.⁠​​‌‌‌‌​​‌​​​​‌​‌‌​‌​‌​‌​‌‌‌‌‌​‌​⁠
   2. Assess threats and risks that could cause disruption.
   3. Plan for recovery and continuity of operations.
   4. Ensure effective control in all situations.⁠​​‌‌‌‌​​‌​​​​‌​‌‌​‌​‌​‌​‌‌‌‌‌​‌​⁠
2. Cycle: Based on the PDCA (Plan-Do-Check-Act) cycle.
3. Integration: Closely embedded in the organisational culture and practised regularly.

ESG (Environmental, Social and Governance)

1. Main objective: To ensure that business operations are sustainable and responsible towards the environment, society and governance.⁠​​‌‌‌‌​​‌​​​​‌​‌‌​‌​‌​‌​‌‌‌‌‌​‌​⁠
2. Scope: Covers environmental factors (such as carbon management and resource protection), social factors (such as employee rights and the community) and governance factors (such as risk management and business ethics).
3. Main activities:
   • Assess and manage environmental impacts.
   • Ensure employees’ rights and welfare.⁠​​‌‌‌‌​​‌​​​​‌​‌‌​‌​‌​‌​‌‌‌‌‌​‌​⁠
   • Implement transparent and accountable governance policies.
4. Cycle: The PDCA cycle can also be applied for continual improvement.
5. Integration: Embedded in the organisation’s overall strategy and business operations.

Key differences

• Scope and objectives: BCM focuses on keeping business operations running continuously, while ESG focuses on sustainability and social, environmental and governance responsibility.
• Specific activities: BCM involves planning and recovering from incidents, while ESG involves managing environmental, social and governance impacts.
• Integration into the organisation: BCM is usually integrated into risk and emergency management processes, while ESG is integrated into the organisation’s sustainable development and social responsibility strategy.

According to studies by Gartner, Forrester and Protiviti used in researching and implementing BCMS, among more than 200 people interviewed by Protiviti, including CIOs, IT specialists, information security specialists and executives, the results showed that Business Continuity is one of the four top areas of concern and priority. Preparedness for incidents and operational disruptions is regarded as a core foundation that helps an Organisation recover quickly after a disaster. However, the research shows that companies currently spend 7 units of money responding to and recovering from disasters, but only 1 unit on prevention and preparedness measures.

At VietESG, Mr. Phạm Quốc Hưng is a Business Continuity Professional – by DRII, and also a Lead Auditor for ISO 22301 – Business Continuity Management Systems – BSI x IRCA. We are ready to provide the following service:

• Consulting on Building/Implementing a Business Continuity Management System (BCMS)

Contact details: Mr. Phạm Quốc Hưng – General Director of VietESG

Email: quynhhoa@vietesg.com

Phone: 0969060290

Website: www.vietesg.com

Fanpage:VietESG