Investors in recent years have started to look more closely at the sustainability of a company, as this has become such an important part of business and life. With aims for carbon-neutrality set out by governments and the EU by 2050, it is more important than ever before that a business understands its responsibilities to promote sustainable activities and processes, and that investment is channeled into the right areas for a greener future and a significant reduction in a company’s carbon footprint that isn’t just paying lip service in a ‘green washing’ way.
Professional ESG reporting software and advice and guidance from specialists in the field is a robust approach that should be taken to implement a data analysis and careful planning for future processes that match the needs of a sustainable, diverse, and inclusive business practice.
Environmental, social, and governance (ESG) investing is a way of screening potential investments based on the policies of the organization. It encourages companies to act in a more responsible fashion that takes care of the future in terms of the environment and the people. How do you measure the ESG efforts of your company though? How do you make sure you are heading in the right direction and can correct course successfully if you find that you are not?
Key metrics for ESG efforts
With investors paying closer attention to the ESG efforts of companies, it is more important than ever before to understand key metrics and learn how best to measure your ESG efforts as a company.
Reduction in carbon footprint
This has become a standard metric that has made its way into everyday parlance, and with good reason. If a company reduces its carbon footprint it can help to slow climate change and limit damage to the environment. But it has to be done in a cohesive, genuine way, across the board. This could include the choice of a renewable energy provider for the entire company, reducing travel for business meetings, and implementing a hybrid work system with less need for office space to be used by every member of staff, at all times.
This could be one of the easiest ways to measure ESG and can demonstrate a relatively quick and easy way to improve your results. The idea is to complete the same tasks that you currently do but using less energy to do so. There are some small and simple changes that can be quickly implemented that help to achieve this, such as installing energy-saving lightbulbs throughout your premises, unplugging equipment and turning off lights when not in use or out of work hours, and other small processes.
Improve health and safety standards
It is important that you maintain high levels of health and safety to ensure that your employees are safe from harm and that staff morale remains high and consistent as a result. Every staff member wants to know that their place of work is safe and that their employer cares about them. Investors who see a happy workplace with low staff turnover, low rates of accidents, and a high safety standard all round are much more likely to be impressed.
Safety of products and services
ESG also means impressing with standards of your products and services. Accurately tracking product recalls and having robust processes to look after customers and to minimise risks is an important aspect of building trust and running an ethical company. It shows that you care about your customers and your staff to have strong processes to deal with product safety.
Diversity and inclusion
Diversity and inclusion are desirable from the top down, with a diverse board of directors a great show of strength that a company really means business. This makes it much more likely that diversity is genuinely cherished within recruitment. A company can promote diversity and inclusion through recruitment at all levels of the business, with clear avenues of promotion for every person in the company, regardless of background.
Does ESG tracking work for all businesses?
Investing in ESG, even if only in a small-scale way to begin with and implementing accurate ESG reporting software, is achievable for small companies, not just large companies with big resources. It can have a positive impact on a business and help to connect with like-minded businesses and investors as you scale.
ESG reporting software from a company with the same ethos of delivering sustainable practices and processes and understanding the need for carbon-neutrality in the coming years, will help you get to where you want to be and show you how to maximise the processes inherent within your organisation to ensure a clear pathway to ESG success. Finding that expertise to have by your side as you make this journey makes it a much more plausible endeavour and one which your entire team can get behind, whether you are looking for potential future investment or not.