2.1 Environmental, Social & Governance (ESG) Principles

In the contemporary business landscape, a significant shift is underway, moving towards a comprehensive understanding of corporate responsibility that extends beyond traditional financial metrics.

Environmental, Social, and Governance (ESG) principles have emerged as three fundamental pillars in reshaping the ethos and operational frameworks of organisations worldwide. These modern ESG principles represent a dedication to sustainability, ethical practices, and corporate stewardship, aligning business objectives with broader societal and environmental aims.

In line with evolving ESG-focused regulations (such as, by way of example, the EU Taxonomy Regulation and Sustainable Finance Disclosure Regulation (SFDR)), TRRUE is committed to integrating these evolving regulations and guidelines into its operations. This compliance not only enhances our platform’s credibility but also ensures alignment with the latest sustainability requirements, offering a clear pathway for our clients to navigate this complex and fast changing sector.

Environmental considerations focus on a company’s impact on the natural world, advocating for responsible resource use, climate change mitigation, and ecological conservation. To support this, TRRUE encourages and facilitates investments in projects that meet the EU Taxonomy for environmentally sustainable activities, ensuring our platform contributes positively to the environment.

Social criteria examine how a business manages relationships with its employees, suppliers, customers, and communities, emphasising labour practices, diversity, and inclusion. Through our platform, we prioritise projects that demonstrate strong social responsibility, aligning with our clients’ values and societal expectations.

Governance involves the internal system of practices, controls, and procedures a company adopts, ensuring accountability, fairness, and transparency in its dealings with all stakeholders. TRRUE adheres to robust governance standards, reflected in our commitment to transparency and ethical practices, which are essential in building trust with our stakeholders and clients.

Through the adoption of recognised ESG reporting standards, such as the International Reporting Initiative (GRI) & Sustainable Accounting Standards Board (SASB), TRRUE and its clients can effectively communicate their sustainability efforts, attracting a broader base of ESG-conscious investors.

ESG scope can be summarised as follows:

	Environmental Considerations focus on a company’s impact on the natural world, advocating for responsible resource use, climate change mitigation, and ecological conservation.
	Social Criteria examine how a business manages relationships with its employees, suppliers, customers, and communities, emphasising labour practices, diversity, and inclusion.
	Governance Involves the internal system of practices, controls, and procedures a company adopts, ensuring accountability, fairness, and transparency in its dealings with all stakeholders.

ESG principles are no longer peripheral considerations, but are central to the long-term resilience and success of a modern business..

The latest regulations and reporting standards being implemented by TRRUE will offer a roadmap for companies to navigate an increasingly complex international market, marked by heightened regulatory requirements, evolving societal expectations, and the urgent need for sustainable development.

TRRUE is committed to adhering to ESG principles in our operations. However, it is important to note that as a smaller enterprise, TRRUE is not currently subject to mandatory ESG reporting laws or regulations, which typically apply to larger corporations or public interest entities. While TRRUE will comply with all applicable laws, our adoption of ESG standards and practices is largely a voluntary, proactive, approach to corporate responsibility, reflecting our commitment to sustainable and ethical business practices. A similar point will likely apply to a good number of our Clients, seeking investment via our crowdfunding platform, which given the sums involved in crowdfunding will likely be SME’s. We will both naturally attract and will prioritise as Clients companies which share our ESG views, including our voluntary, proactive, approach to corporate responsibility. We believe this proactive approach is both the correct approach and one that is increasingly being adopted by SME’s, especially as they see the benefits accruing to corporations which engage proactively with ESG responsibilities, which includes attractiveness to ESG focused investors.