Environmental, Social, and Governance (ESG) Certification is becoming increasingly important for companies looking to demonstrate their commitment to sustainability and responsible business practices, and want to ensure their social, environmental and governance practices meet international standards and benchmark with sustainability index.
ESG Certification is a third-party verification process that assesses a company’s performance in eight key areas such as Climate Change, Biodiversity, Business Integrity, Corporate Governance, Human Rights, Privacy & Data Security, etc. The certification provides assurance to stakeholders, including customers, investors, and regulators, that the company is operating in a sustainable manner. In this way, ESG Certification can help companies build trust, enhance their reputation, and access new markets and capital. In this article, we will explore the reasons why companies need ESG related Certification and the benefits that it can provide.
Benefits of having ESG Certification
ESG certification can help companies attract investors who are looking to invest in organizations that prioritize good ESG practices. Additionally, such certification can also help companies enhance their reputation and strengthen partnerships with customers, suppliers, and other stakeholders. At the same time, companies that obtain ESG certification are likely to improve their operational efficiency and reduce costs in the long run. Overall, ESG certification is an important step for companies that want to demonstrate their dedication to responsible business practices and improve their competitiveness in today’s market.
Key benefits
- Demonstrate your ESG commitment
- Create mechanisms for continual improvement
- Avoid greenwashing
- Prepare for new market entry
- Go beyond the minimum standards
- Consistently achieve ESG targets
The solution: SGS ESG Certification
SGS ESG Certification is a non-accredited certification scheme developed by SGS to assess the management of environmental, social and governance issues in an organization. An ESG certificate is issued to an organization that complies with the defined criteria based on ESG insights and audit data built up over the last three decades. The criteria summarize the requirements of popular ESG best practices and recognized sustainability standards.
Complying with our ESG criteria not only leads to an ESG certificate but also established, auditable internal processes, which are the foundation of continual improvements. These will enable your employees and suppliers to commit to their ESG metrics and targets, and, in turn, enhance your ESG credentials period over time.
An ESG certificate, can demonstrate the truth of your ESG credentials to stakeholders, reducing the perception of greenwashing. ESG certification gives you competitive advantages for new market entry, particularly in the tendering and financing stages.
Who is it for?
Organizations looking for long-term commitment to their ESG strategies through established, auditable internal processes. Senior management, Sustainability Manager, Project Manager, Business Development Managers, etc.
SGS rich experience in sustainable development
Our ESG experts actively contribute to developing international standards, frameworks, schemes and regulations, such as the UN Sustainable Development Goals (SDGs), UN Principles for Responsible Banking (PRB) Assurance and EU Corporate Sustainability Reporting Directive (CSRD).
With extensive experience in all major industries, we understand each sector’s pain points and have the technical expertise and logistical capabilities across the globe to ensure realistic sustainability outcomes.