Given the increased regulatory requirements, it is imperative that companies be proactive in monitoring current and emerging ESG regulations to ensure compliance and remain competitive. Global regulations are increasingly requiring companies to disclose information regarding the nonfinancial aspects of their business to interested stakeholders.

What do these shifting regulatory sands mean? First, companies need to have an intimate understanding of the jurisdictions in which they operate, and accordingly, the local regulations with which they must comply. With carbon emissions, for example, even if a company has a handle on its own emissions, its total carbon impact might be affected by others in the supply chain, and that might affect the company's regulatory burden.

All of this means that global companies will need to keep ESG regulations front and center. To get started, companies first need to take inventory of all their ESG programs and exposures. Companies today are competing on ESG metrics and using them for competitive advantage - so being minimally compliant just won't cut it.

ESG regulations set a minimum standard, and companies that go beyond those minimums and embrace the challenge of the changing regulatory landscape can position themselves for success.