Learn about ESG

The ESG phenomenon garners widespread attention from all industries, stakeholders, and the international community.

Companies are embracing ESG because they have realised that operating in ways that are good for people and the planet, is worth any short-term pains for the long-term growth in profits.

But what exactly is ESG, and why has it become such an important issue? Read on for a better understanding:

  1. What is ESG?
  2. Who benefits?
  3. Why bother with ESG?
  4. The ESG reporting landscape
  5. Implementing ESG

Learn about ESG

The ESG phenomenon garners widespread attention from all industries, stakeholders, and the international community.

Companies are embracing ESG because they have realised that operating in ways that are good for people and the planet, is worth any short-term pains for the long-term growth in profits.

But what exactly is ESG, and why has it become such an important issue? Read on for a better understanding:

  1. What is ESG?
  2. Who benefits?
  3. Why bother with ESG?
  4. The ESG reporting landscape
  5. Implementing ESG

What is ESG?

ESG is the acronym that captures the idea that companies should also use non-financial factors to influence their Environmental impacts (E), Social impacts (S), and Governance attributes (G). These three central components are used to measure the sustainability and societal impact of an investment in a company.

Environmental

Environmental factors include climate change and environmental challenges and opportunities, such as energy use and materials, waste production and management, pollution, etc.

Social

Social factors relate to how companies treat employees and the community, including factors like employee engagement programs, human rights policies, health and wellbeing initiatives, and employee diversity.

Governance

Governance factors relate to how a company is run, which includes its management structure, executive compensation, business ethics, internal controls and accountability policies, shareholder rights, etc.

Who benefits from ESG management?

Proper management of ESG benefits a range of stakeholders. Employees will experience a more comfortable and enjoyable place of work, resulting in improved productivity for executives, external communities will see reduced negative impact on the environment, investors will rest easy knowing that their investments are better suited to weathering unexpected challenges but also well positioned to take advantage of market opportunities.

ESG matters because it gives investors and executives the means to implement strategies that reflect their principles. Good ESG practices will have positive impacts on stakeholder satisfaction, investor confidence, and your organisation’s public standing.

Standardise reporting with ESGCloud

Who benefits from ESG management?

Proper management of ESG benefits a range of stakeholders. Employees will experience a more comfortable and enjoyable place of work, resulting in improved productivity for executives, external communities will see reduced negative impact on the environment, investors will rest easy knowing that their investments are better suited to weathering unexpected challenges but also well positioned to take advantage of market opportunities.

ESG matters because it gives investors and executives the means to implement strategies that reflect their principles. Good ESG practices will have positive impacts on stakeholder satisfaction, investor confidence, and your organisation’s public standing.

Why bother with ESG?

The question often asked at the beginning of the ESG implementation process is, ‘Why do we need to report on ESG in the first place?’. If you are going to be dedicating time, resources, and expertise to ESG disclosure, it is important to understand the reasons for doing so. Here are some benefits:

  • Monitoring and improving long term risk and opportunity management.
  • Benchmarking with industry standards and competitors.
  • Companies that incorporate sustainable practices into the core of their business operations are more likely to attract investment.
  • Improving reputation and avoiding damaging publicity.
  • Implementing good ESG practices inherently means taking a long term view to building a more sustainable and resilient business.
  • Preparing disclosure for compliance with upcoming regulatory requirements.
  • Improved, data driven decision making.

More and more studies have shown, and proven, that there is a direct relationship between ESG management and financial performance. This trend validates the efforts of companies that are already implementing sustainable business practices, and is forcing more and more companies to include ESG management and disclosure as part of their routine.

Why bother with ESG?

The question often asked at the beginning of the ESG implementation process is, ‘Why do we need to report on ESG in the first place?’. If you are going to be dedicating time, resources, and expertise to ESG disclosure, it is important to understand the reasons for doing so. Here are some benefits:

  • Monitoring and improving long term risk and opportunity management.
  • Benchmarking with industry standards and competitors.
  • Companies that incorporate sustainable practices into the core of their business operations are more likely to attract investment.
  • Improving reputation and avoiding damaging publicity.
  • Implementing good ESG practices inherently means taking a long term view to building a more sustainable and resilient business.
  • Preparing disclosure for compliance with upcoming regulatory requirements.
  • Improved, data driven decision making.

More and more studies have shown, and proven, that there is a direct relationship between ESG management and financial performance. This trend validates the efforts of companies that are already implementing sustainable business practices, and is forcing more and more companies to include ESG management and disclosure as part of their routine.

ESG reporting landscape

The ESG reporting ecosystem is crowded. The landscape has been deluged with a multitude of frameworks, all of which have different positioning and application, often leaving companies feeling confused and frustrated. Below is a summary to help companies become familiar with the landscape:

ESG reporting landscape

ESG reporting landscape

The ESG reporting ecosystem is crowded. The landscape has been deluged with a multitude of frameworks, all of which have different positioning and application, often leaving companies feeling confused and frustrated. Below is a summary to help companies become familiar with the landscape:

ESG reporting landscape

Ready to get started with ESG?

Complete the form below and a member of the ESGCloud team will reach out to discuss our ESG solutions in more depth.

  • This field is for validation purposes and should be left unchanged.

Ready to get started with ESG?

Complete the form below and a member of the ESGCloud team will reach out to discuss our ESG solutions in more depth.

  • This field is for validation purposes and should be left unchanged.
Are you ready to start the change?

Digitise and transform your ESG reporting. We look forward to talking to you about your business goals and technology needs and showing you our ESG management and benchmarking solution.

 

Are you ready to start the change?

Digitise and transform your ESG reporting. We look forward to talking to you about your business goals and technology needs and showing you our ESG management and benchmarking solution.

 

ESGCloud is a SaaS platform that roots ESG in company performance by connecting ESG effort to competitive strategy and opportunities, and in turn profitability.

The software is innovative and intuitive to use, and features have been created with the end user in mind, making data collection and reporting easy through an all-in-one ESG tool.