12th January 2023
Pressure to maintain ESG Credentials
Customer’s and investors are now driving a sustainability agenda more than ever, taking into consideration the energy demands of business operations. Companies that cannot demonstrate their environmental performance with tangible metrics will struggle to meet customer expectations as they become increasingly aware of climate change-related impacts.
Some latest research reveals an overwhelming majority (60%) feel pressure from customers to maintain ESG credentials in order for them not be left behind – this is coupled by 42% expressing concern about navigating regulatory pressures too.
With the current focus on sustainability, organizations are recognizing that they must develop accurate ways of assessing their energy and emissions in order to lead with greater environmental awareness. Unfortunately, assessments can be hindered by data standardization issues or a lack of available information altogether. To overcome this challenge, experts have suggested tapping into external resources for help establishing precise processes and systems capable of assigning trustworthy ESG (Environmental Social Governance) ratings to key areas such as IT management, buildings & utilities consumption; supply chain practices; waste reduction initiatives – even company travel policies!
Achieving consistent, reliable sustainability metrics can be a challenge for many organisations. However, by acquiring specialist insight into various operations and accurately collecting ESG data points will enable companies to confidently report on their performance in terms of environmental stewardship and social responsibility initiatives. In addition, standardised practices facilitate benchmarking which is essential when tracking progress towards corporate objectives. Collaboration with strategic partners might provide the necessary assistance required for an organisation’s journey toward better governance through enhanced sustainable practices. Check out a free starter quiz that takes 5 mins to gauge your current ESG awareness.
Barriers around ESG for Businesses
Businesses are increasingly acknowledging their environmental impacts, but concerns over budgets and security can challenge sustainability initiatives. From a lack of funding to senior leadership buy-in, it may seem too difficult for companies to implement ESG reporting or take on other responsibility programs. However, there is often an assumption that these investment strategies will be expensive when in fact they have the potential to save costs and reduce emissions as time passes by. Investing early in greener solutions ensures long term cost savings whilst simultaneously allowing businesses to stay ahead of ever changing regulations around sustainable practices.
ESG Reporting towards tangible Sustainability
As the pressure to prove environmental and social value grows, businesses need more than just a commitment–they must take tangible steps towards sustainability. ESG reporting provides an opportunity for these companies to illustrate how their strategy aligns with stakeholder expectations while making sure that data remains central in order to ensure success.