The continued emergence of ESG in 2022 faced some strong headwinds, yet it fundamentally provided value creation opportunities for companies working at the cutting edge of ESG.
Green washing scandals aplenty, climate risk denial, industry leaders touting ESG as a scam, investment funds losing faith, the green hush, human rights issues ignored, the energy crisis and a few more I’m sure we’ve missed. Needless to say, it was turbulent year, and it didn’t help that it was another year of further confusion in reporting frameworks, mandates and standards.
But what has been forgotten in the myriad of acronyms and bad press, was the value that ESG reporting can bring. Not only to a business, but the community, the economy, it’s stakeholders and the environment.
- Strengthen trust, credibility and reputation through transparent reporting
- Build and strengthen community relationships with outreach programs and activities
- Attract customers and suppliers with the development sustainable products/solutions
- Innovation of sustainable products and services, creating new revenue streams
- Allocating capital in more sustainable assets and investments and finance opportunities
- Assist companies in attracting and retaining employees and increasing productivity
- Attract customers and suppliers with the development sustainable products/solutions
- Opportunities to identify energy, waste, and emissions reductions
- Exposure to new markets and industries
- Government support in funding sustainability projects and potential tax benefits
As there is no such thing as a one-size-fits all ESG approach to building an ESG framework, ensuring the company purpose, industry, ESG appetite, time and resources are factored in, is crucial to ensure effective reporting.
Building a strong ESG framework and strategy comes with its challenges though it has been said that companies with ESG embedded in its purpose outperform those that do not. Not only does ESG reporting protect the company through strengthened risk and opportunity identification but more and more companies are side stepping companies for those with a purpose aligned with ESG principles.
Getting started may be daunting, but there are a few key steps that set you on the right path.
– Understanding stakeholders and material issues.
– Collate verifiable data.
– Report to an ESG framework and utilise as a standards criteria.
Our team of ESG experts have a wide range of industry knowledge and experience with ESG reporting and integration. No matter what stage your company is at with ESG reporting, we can help you at every step. Get in touch today to discuss your ESG reporting and integration needs.
Contact us today to discuss your current reporting needs.