Environmental, Social Governance, (ESG) Reporting: What Does it Mean For Businesses
A lot of business owners are asking what is ESG and what does it mean for my business? The following is a guide to help you through the concept, what it is and how Troo can help.
What is ESG?
ESG stands for environmental, social and governance. It sets out the criteria on which the company is operating and managed. Everything is measured against a sustainability yardstick. It’s an evaluation of an organisation’s collective conscientiousness for social and environmental factors. The data is collected and collated to form a score as a basis of measurement. Looking at each part:
Environmental criteria may include a company’s energy use, pollution, waste, renewables etc. The measurements may include issues like how an organisation disposes of its waste products, how much of its energy is renewable, how it deals with toxic emissions.
Social typically refers to how an organisation interacts with its partners and business relationships. For example, does the supplier base hold the same values as the company? Does the organisation interact with the local community or encourage volunteer work? How are the organisation’s stakeholders consulted and their opinions considered? Is the health and safety of the staff a prime concern?
How is the organisation run? What governance measures are in place? Is the organisation ethical, is it in tune with best practices and open regarding its corporate affairs?
So what does this mean for you as an organisation? ESG concerns have simply been seen as a signal of organisations caring credentials. This was typically all wrapped up under the badge of “corporate responsibility”. Increasingly now these measures are increasingly seen as a fundamental part of an organisation’s success and a benchmark of sustainable business.
ESG concerns have come to the fore in the realm of raising business finance. Environmental, social, and governance concerns are now significant indicators of future performance and business sustainability for potential investors and can not be ignored.
How Troo can help
Measurement is a crucial part of managing. At Troo, we have the experience and expertise to help you measure and manage some of the key features around your ESG score. Be it looking at renewable sources of energy, measuring and managing your carbon footprint, or how can you reduce your energy consumption, we are here to help.
Our cutting edge reporting tool, allows you full visibility on what you use and when. The reporting functionality displays your carbon footprint allowing you to target measure and reduce your carbon footprint and reach your own ESG targets.
Our team is at hand to help you through your carbon neutral journey and discuss how we can help you hit your ESG targets and reduce costs. Call now on 08080 164 2222