Environmental, social and governance (ESG) covers actions and policies adopted in support of responsible corporate behaviour. ESG factors are critical cornerstones in succeeding as a sustainable business.
A good sustainability strategy will enable you to embark on this significant journey whereas ESG factors will be the living and breathing metrics by which your operations will be judged – the heartbeat of this transformative frame. Good ESG management indicates a maturation of business practices, which translates to better risk management.
So, what do companies need to do differently to truly embed ESG agenda in their operations?
It is not just being able to deliver on your promise of a sustainability strategy, but also to put in place robust systems which not only measure, but also continuously improve ESG performance and help manage related risks and opportunities. Annual performance reports and disclosures are a good place to start; however continual improvement, upskilling, upgrading, change, and even transformation, is not just inevitable, but has rather evolved into a necessity for more sustainable business operations.
By addressing the Social and Governance parameters, these inevitably impact the Environmental parameters in a positive light. When it comes to tackling some of the world’s biggest climate change issues – such as reducing greenhouse gas emissions, taking climate action, transitioning to alternative sources of energy, designing out waste and optimising resource use for a cleaner, greener environment – the change starts from within.