At a time when looming climate crisis and social issues have been forced to the forefront, investors, corporations, and financial institutions are increasingly understanding the relevance of environmental, social, and governance (ESG) standards.
The first steps are to figure out what data is material to your company, what you will need to manage your ESG data, and which frameworks will best analyse and standardise it. After that, you must address the issue of access. Finally, you will have to understand what to do with the data to ensure that it meets the needs of your stakeholders.
Why is ESG data so crucial today?
There has been a growing focus on sustainability issues in recent years, particularly amongst younger generations. Companies are left with little choice but to become more environmentally conscious. Businesses understand that if they do not consider sustainability, they risk losing the backing of their stakeholders (Banks, Investors, etc.)
If you manage your ESG data correctly you understand how best to mitigate risks and enhance opportunities, creating a more resilient operation.
Why are many C-level executives still disconnected with ESG?
Although there are currently courses meant to provide this information, senior management teams are often not well informed on the topic. Climate concerns and sustainability seem to be a millennial’s game. While some businesses are forerunners, and this topic is already discussed in their boardrooms, the younger generation vehemently fighting the fight have not yet reached this level of management.
Unless you manage your ESG data, sustainability will never really be a topic outside of the boardroom either. Although everyone is aware of the ESG concerns we face, the subject has not yet become fully incorporated into the DNA of businesspeople. Some haven’t yet realised that financial and non-financial (ESG) factors are inextricably linked.
How ESG consultants or professionals can help in the process?
Customers, investors, employees, the media, and policymakers have all increased their scrutiny of corporations to ensure they act with greater transparency and social purpose. ESG consultants will concentrate on building a strategic framework that integrates ESG with business strategy for the long-term benefit of all stakeholders.
ESG consultants in essence, design and deliver integrated sustainability strategies that increase performance, manage risk, increase market position and safeguard shareholder value to help you manage your ESG data.