ESG is a set of environmental, social and governance standards for company operations.
It serves as a guide for stakeholders to understand how an organization manages risks and opportunities across the three dimensions::
• Environment: The energy your company takes in, natural resources it uses and the waste it discharges.
• Social: Labor practices, product safety, occupational health and safety and data security.
• Governance: Compliance, Board diversity, executive pay, business conduct and tax transparency.
What is ESG reporting and why does it matter today?
ESG metrics and reporting are fast becoming business imperatives. Increased scrutiny from investors,
shifts in consumer and customer expectations and likely policy changes mean companies are facing new pressure to measure,
disclose and improve on ESG-related issues across three clear categories:
• Environment: carbon emissions, water and waste management, raw material sourcing, climate change vulnerability.
• Social: diversity, equity and inclusion, labor management, data privacy and security, community relations.
• Governance: board governance, business ethics, intellectual property protection.
Stakeholders across the business spectrum see ESG as a window into a company’s future.
ESG reporting and metrics are also an important indicator of a company’s overall health,
and ESG reports can lay the foundation for a compelling story about the impact your company is making on the world.
Tying all three elements of ESG into consolidated reporting, and to your broader strategy,
signals that your company is taking the necessary steps to be viable and profitable in the long run.
And that’s music to the ears of investors looking out for the long-term health of their portfolios.