ESG
What is ESG ?
ESG Continues To Gain Prominence Globally
ESG refers to the assessment of businesses’ sustainability levels through the consideration of environment, social, and governance aspects. It helps evaluate how companies manage opportunities and risks arising from changes in environment, economic, and social systems. The ESG framework consists of three pillars, each with specific components:
Environment: This pillar evaluates how an organization’s operations affect the natural environment. It includes greenhouse gas emissions, energy and water usage, waste management, and responsible resource utilization. Additionally, it considers the company’s commitment to renewable energy, sustainable practices, biodiversity, and the adoption of eco-friendly technologies.
Social: This pillar examines the societal impact of an organization’s operations, encompassing labour practices, human rights, community engagement, and the promotion of diversity and inclusion.
Governance: The governance pillar focuses on the organization’s oversight, supervision, and controls, emphasizing transparency, accountability, ethical behaviour, and the alignment of management’s interests with those of shareholders and other stakeholders.
What is meant by?
- ESG refers to the use of environmental, social, and governance (“ESG”) aspects to assess the sustainability levels of businesses.
- It aids in evaluating how a company handles the opportunities and risks brought on by changes in environmental, economic, and social systems.
Why the increasing interest in ESG?
Globally, investor groups and CEO alliances have acknowledged that ESG factors foresee & avoid critical business risks
Investors relying on holistic and ESG-relevant reporting on corporate ESG topics led to strong ESG disclosures gaining importance
As a trickle-down effect, large corporates belonging to heavily invested sectors are cleaning up their supply chain
Large corporates are looking for such business liaisons that are ESG-risk free
ESG Overview
Prominence of ESG Gloablly
Corporations, private equity, and investors are increasingly recognizing that it is no longer solely about the impact of a company’s operations on the environment, people, and communities where it operates. There is a growing understanding that ESG issues can significantly affect a company’s performance and overall value. The 2020 global health crisis, population growth, climate change, energy transition, evolving global social and community actions related to diversity and race, and the need to adapt to the “next normal” have created a heightened demand for transparency and action regarding ESG.
ESG criteria, regulations, and investments across all industries are rapidly evolving to support a more sustainable and equitable future. Companies are actively aligning their purpose, strategies, and practices to enhance the environment, promote social good, and create long-term value. Stakeholders, including investors, employees, customers, suppliers, regulators, asset managers, and legal professionals, are increasingly interested in a company’s ESG approach, track record, and credentials to form their engagement decisions.
How we can support you to achieve your ESG targets
We Provide Holistic And Bespoke ESG Solutions To Improve An Organization’s ESG Performance
Consulting HAUS ESG solutions
Assess
Materiality assessment
Identify and assess relevant ESG topics affecting the company’s business performance and its stakeholders
Performance assessment
Gauge current ESG performance of the company in respect of existing ESG policies/ programmes and availability of data for key ESG metrics and design of ESG data aggregation templates for relevant data not currently captured
Consulting HAUS ESG solutions
Measure
Maturity analysis
Analyze gaps in terms of ESG performance, alignment with existing standards and preparedness for upcoming regulations. Also conduct GHG accounting for Scope 1, 2, and 3 emissions
Peer benchmarking
Understand thecompany’s ESGperformance and itsmarket position, incomparison to peers, andidentify industry bestpractices
Consulting HAUS ESG solutions
Strategize
Strategy and roadmap development
Formulate an approach to improve ESG performance by setting goals and targets, development and refinement of ESG policies, developing initiatives to achieve the same and monitoring progress
Benefits to the organisation
- Stakeholderconfidence
- Business continuity
- Better ESG ratings
- Risk resilience
- Preparedness for upcoming regulations
Consulting HAUS ESG solutions
Disclose
Reporting and disclosures
Communicate ESG strategy, goals, initiatives and metrics to relevant stakeholders aligned with globally recognised standards and local frameworks such as QSE ESG Disclosure Guidance, GRI, SASB, IR, UN SDGs, etc.
Note :
*GRI (Global Reporting Initiative), SASB (Sustainability Accounting Standards Board), IR (Integrated Reporting), UN SDGs (Sustainable DevelopmentGoals), etc..
Major Drivers Of ESG
76% of consumers say they will stop buying from companies that treat the environment, employees, or the community in which they operate poorly (PwC)
95% of stock exchanges globally use the GRI’s (Global Reporting Initiative) sustainability reporting framework as part of their ESG guidance (Statista)
Around 40% of companies now acknowledge the financial risks of climate change in their reporting (KPMG)
80% of companies worldwide now report on Sustainability (KPMG)
