Why ESG?
Understanding ESG
ESG stands for Environment, Social, and Governance. It's a set of criteria used to assess a company's sustainability and ethics.
ESG frameworks enable organisations to report non-financial factors, identifying and mitigating risks across their operations.
Companies are assessed based on environmental, social, and governance practices. Investors use ESG factors to gauge sustainability and ethics. These guidelines help companies report on environmental impacts, labor practices, human rights, and anti-corruption measures.
Environmental Performance
✔ Energy efficiency
✔ Climate change strategies
✔ Waste reduction
✔ Biodiversity conservation
✔ Greenhouse gas emissions
✔ Carbon footprint reduction
Social
Performance
✔ Fair pay and living wages
✔ Equal employment opportunities
✔ Employee benefits
✔ Workplace health and safety
✔ Community engagement
✔ Adherence to labour standards
✔ Responsible supply chain
Governance Performance
✔ Corporate governance
✔ Risk management
✔ Compliance
✔ Ethical business practices
✔ Conflict of interest avoidance
✔ Accounting integrity and transparency
Why ESG Matters
Regulatory Compliance
Ensures corporate stability by proactively addressing ESG regulatory standards and government regulations, safeguarding an organisation's reputation and financial stability.
Ethical Investing
Concerns for public health, climate change and misuse of natural resources are driving investors and money managers toward sustainable businesses and away from ones with outdated ethical practices.
Risk Mitigation
Companies adhering to ESG best practices can sustain, adapt and preempt the ever-changing landscape of climate risks, community unrest and financial malpractices.
Business Continuity
Managing ESG metrics, such as energy consumption, raw material usage and waste treatment, through innovation and alternatives in the supply chain can reduce cost in the long run, and stay clear of potential business disruptions.
Competitive Advantage
Sustainable practices strengthens a company's brand and helps attract and retain customers and employees through being transparent and effectively communicating ESG efforts, giving companies an edge in the market.
Social Impact
Companies can positively impact communities, contribute to environmental preservation, and support global sustainability goals.