Photo by Scott Webb on Unsplash

The complex challenges of managing ESG performance

Environmental, Social and Governance (ESG) performance, is a unique consulting and software combination that helps companies worldwide take the next step in their ESG journey. Investors use non-financial factors to measure an investment or company's sustainability.

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Environmental, Social and Governance (ESG) performance is now an essential metric for capital markets. Investors are increasingly focused on climate and ESG-related disclosures and investments. Companies with strong ESG performance have more significant returns on their investments, low risks, and robust resiliency throughout a crisis.

Some facts about ESG performance:

  • It is nowadays a crucial metric for capital markets.
  • Investors are ever more focused on climate and ESG-related investments.
  • Businesses with robust ESG implementation have more significant revenues from their investments, robust resiliency and minor risks.
  • Companies should foresee more outstanding analyses of their ESG performance.
  • They require a suitable mixture of strategy and technology to uphold their journey towards reducing risk whilst enhancing brand status.
  • Drop 50% in data collection and reporting time.
  • Increase ESG by 20% in ESG program ROI.
  • Reduced brand and financial risk.

Non-financial ESG factors to consider include:

  • Compromising with the prerequisites of current and future legislation.
  • Commitment to industry standards and good practice.
  • Enhancing staff morale, making it more straightforward for employee recruitment and retention.
  • Getting stronger relationships with suppliers and customers.
  • Developing your business reputation and bonds with the local community.
  • Fostering your business capabilities, such as developing skills and know-how in new areas.
  • Improving management techniques.
  • Preventing and dealing with upcoming hazards.

For instance, you must consider the environmental impact of a prospective investment. Somewhat, it might be reflected in financial circumstances -the energy savings encompassed in new machinery. Other effects should be considered, such as the consequences on your brand reputation.

What are examples of ESG?

  •  Carbon emissions.
  • Water usage.
  • Green energy initiatives.
  • Air and water pollution.
  • Deforestation.
  • Waste management.

Several companies started developing an evaluation process to set a science-based Greenhouse Gas (GHG) reduction. To be successful in facing environment-related risk whilst contributing to the desired diminishing emission objective, in line with the climate goal from the Paris Agreement.

It is a methodology to consider their direct and indirect emissions based on the Science Based Target Initiative (SCTi). It uses principal data from databases to get robust insights into their entire value chain.

They decided to consult sustainability experts to set up targets for supporting the authentication process and assisting with making the targets known.  Additionally, the reference point to scope GHG emissions was calculated based on their database.

An ESG implementation can benefit all sorts of operations, such as:

  • Corporate Sustainability.
  • Product sustainability and compliance.
  • Environmental Accounting.
  • Health & Safety Management.
  • Advance Risk Assessment.
  • Chemicals Management.
  • Control of Work.
  • Master Data Management.

These controls can be possible through Sustainability consulting, Regulatory content, Corporate reporting, and an integrated platform.  Sustainability, productivity, and safety are the primary purposes for a successful ESG performance.

Conclusions: Setting GHG emission reduction targets aligned with climate science is an excellent approach towards future-proven natural capital for humanity. Count on environmental experts, edge technology and adhering to environmental authorities will take us to transform our businesses whilst greatly benefiting the Planet’s health.

Setting ESG method helps organisations to enhance the environmental implementation and increase transparency for their internal and external stakeholders.

Are you ready to drive your company to the next level of environmental sustainability?

Dave Food

M: +44 7775 861863

Photo by Scott Webb on Unsplash