Committing and transitioning responsibility into the core of an organisation through the environmental, social and governance lens.
As the world we live in changes, environmental, social, and governance (ESG) criteria are becoming more and more important.
What is ESG?
ESG are a set of standards that mark a company’s behaviour and mission in the area of sustainability. Used by conscious investors to screen potential investments and other stakeholders to understand an Organisation’s commitment to their own social responsibility.
Responsible investing can be shaped by ESG annual reports. Where financial performance and ethical behaviour towards people and environment are important in equal measure.
Investors are increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities. An ESG strategy refers to the plan you set and work to meet ESG objectives, such as reducing energy consumption, diversifying the talent pool, taking climate action, and attracting customers with sustainable products. Their theme can be complex and evolving, yet important for an organisation to get it right.
Environmental criteria considers how a company safeguards the environment and works to reduce environmental impacts such as greenhouse gas emissions, and the underpinning business strategy surrounding sustainability, including corporate policies addressing climate change, for example.
Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Social factors include labour and safety standards, human rights, anti-slavery, and other social values.
Governance factors deal with company leadership and the board of directors, executive pay, board composition, audits, internal controls and shareholder rights. This gives a window into the company structure and where things will be heading in the future.
ESG factors have been growing rapidly since the beginning of this decade, and are expected to continue rising significantly over the decade to come. Talk to our experts to start and manage your journey.
At Sustineri, we have the expertise in ESG reporting frameworks and sustainability consulting to help deliver a positive impact for your company or organisation. Get in touch to see how our ESG consultants can help you!