Why Do You Need an ESG Report?
Environmental, Social, and Governance commonly referred to as ESG reporting is a way for corporations to uncover methods, define goals and deliver results.
Regarded as an invaluable tool for corporations, ESG can help track sustainability, report the corporation's performance, and even identify risks. A deeper look into three crucial aspects of your business can help stakeholders guide their business in the right direction. Ensuring that the corporation not only grows but also develops strategies for staff wellbeing and improves environmental standards.
Understanding ESG
Environmental – The first section covers how the company uses energy, and what impact it makes on the planet. Additionally, it takes a look at the resources the company uses across the board. These include but are not limited to climate change, energy efficiency, biodiversity, carbon emission, water and air quality, waste management, and/or deforestation.
Social – The second section covers how a corporation treats its workers, and what culture it offers. These simple aspects help understand the ripple effects on communities, especially when paired with pressing issues such as; gender, diversity, employee engagement, data protection, customer care, community relationships, labour standards, and human rights.
Governance – Lastly, Governance is referred to as the internal system. It takes a look at the practices, procedures, and system of controls. For instance, it helps ensure transparency and pushes for better industry practices. The factors considered under governance include leadership, executive compensation, board composition, shareholders' rights, corruption, political contributions, whistleblower programs, internal controls, bribery, and/or audit committee structure.
Benefits of ESG Report
In recent years we have seen an increase in demand for ESG reports, and here are ways you can benefit from an in-depth environmental, social, and governance report.
Attract and Retain Investors
Investors measure a company's value and growth potential based on metrics. An ESG report can help offer them a sense of security when investing in a corporation. Meaning not only will you be able to attract new investors, but you will also be able to retain your current investors.
Ensure Brands reputation, Transparency, and Trust
Research shows that consumers are more likely to do business with corporations that align with their beliefs about sustainability and governance. By offering a well-reputed, transparent, and trustworthy corporation you can attract like-minded investors and customers.
Identify and Manage Risks, Building a Strategy and Measuring Impact
ESG issues can expose your corporation to many risks, risks that can easily be identified and managed with an in-depth ESG strategy. Once the strategy has been defined and the goals set, the ESG report should clearly illustrate the progress an organisation has made to achieve those goals.
We employ a range of graphic and visual techniques to improve clarity in the reporting, using infographics, charts and diagrams. These visual tools give stakeholders fast and clear access to the data and provide an overall picture of the organisation's ESG achievements.
Overall, environmental, social, and governance reporting is a necessary tool for corporations that are looking to manage their impact and create a more sustainable, trustworthy, and transparent system. Working with a reliable ESG reporting provider you can efficiently navigate through the ESG world.