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Environmental, Social, and Corporate Governance

A Stakeholder-Centric Approach To Doing Business

How's Does Your Environmental, Social, Governance Reporting Look?

What are Environmental, Social, and Governance?

Environmental, Social, and Governance (ESG) are general terms but they are having a huge impact on your business. They are used in capital markets and investors to evaluate corporate behavior and determine companies’ future financial performance.  Consequently, ESG is the new measure of success for corporations.   

Why do I care about ESG?

Blackrock CEO Larry Fink proclaimed in his annual letter in January, “To prosper over time, every company must not only deliver financial performance but also show how it makes a positive contribution to society.

The world has changed. As a result, consumers and employees have increasingly different expectations of the businesses they buy from and work. Similarly, leaders are under pressure from regulators and the market to prove that their organizations act responsibly and sustainably. Now, more than ever, it’s essential to embed ESG in your business strategy.  Above all, build a resilient business that thrives in the new reality.  After that, play your part in making the world a more sustainable and better place for everyone.

What are the ESG criteria?

Essentially, ESG reporting criteria are standards for a company’s operations that socially conscious investors use to screen potential investments. 

  • Environmental criteria consider how a company performs as a steward of nature. 
  • Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates.
  • Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

ESG Investing is Growing

ESG investing is becoming increasingly popular and is most likely to be an investing approach used by millennials.  For example, Morgan Stanley Bank recently surveyed millennial investors. As a result, the study found that nearly 90% were interested in pursuing investments that more closely reflect the values they hold.

Evidently, ESG must be embedded in your strategy and form the overall narrative and purpose of your organization.  Similarly, every aspect of your business is now in the spotlight. From how you treat employees, your supply chain, how you use and manage data right through to your environmental credentials.  Consequently, it is now clear that having a positive impact on the planet and its people matters like never before.

Reducing your Annual Energy Use Produces Tangible ESG Results To Report On 

The best and least costly way to become carbon-neutral is to start with a  commercial energy audit.  Our energy audits are designed to lower your annual energy spend, and transform your company into carbon-neutral company with tangible results. In short, when you improve the buildings you operate in, you’ll have documentable proof for your ESG reporting using no gimmicks.  Offsets and certificates have shown to reduce less than 5% of carbon emissions.

What The Industry Is Saying About Sustainability

Credit ratings are ESG

Enhanced climate-related risk reporting would help assess relative vulnerability of an entity’s creditworthiness to a reasonable stress scenario arising from Environmental, Social and Governance (ESG) related developments. 

Zurich promotes ESG

We believe that proactively integrating sustainability risks and opportunities, expressed in Environmental, Social and Governance (ESG) factors in our investment decisions will help us to do our job well on a long-term basis

Investors are evaluating your ESG

Blackrock CEO Larry Fink proclaimed in his annual letter in January, “To prosper over time, every company must not only deliver financial performance but also show how it makes a positive contribution to society.” 

These are just a few, but they demonstrate that your costs are going to increase if you are perceived to be a risk to the investment they make in your company.  If you’re not mitigating your carbon emissions, you’re contributing to climate change and that makes you a financial risk.  

You may already have a ESG Rating  If so it’s free.  If not, we can get you in touch with people who can get you a rating.

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