What value can ESG create?
ESG (Environmental, Social, Governance) can create value across your entire business. From helping you reduce your carbon footprint to positively impacting on communities – the power of ESG can’t be ignored from a business perspective.
Here are just a couple of the ways ESG can create value and some information on how you can monitor and track your progress in these areas to boost performance:
Make a positive difference to the environment
Undeniably the main aspect of ESG that people gravitate to is the ‘environment’. The environmental element of ESG is focused on how a company’s operations and supply chain can impact the physical environment.
Depending on where you are in the world, many frameworks will put environmental impact into four key areas: climate risk, natural resources, environmental opportunities and pollution and waste. With climate change a very real threat to our planet, monitoring and reporting on your environmental footprint is not a nice-to-have; it’s essential. With the Race to Zero at the forefront of many business leaders’ minds, cutting carbon emissions is a goal and objective of many businesses around the world.
Our advisory team works with companies of all shapes and sizes to help them reduce their impact on the planet. As well as having a positive impact on the environment, changes in how you operate can also lead to increased efficiency, a boost in productivity and cost savings. This is exacerbated by the growing demand from investors to see these efficiencies being adopted.
We know that every business is different, which is why our team is committed to getting to know you and your goals. Once we understand the areas you’d like to focus on we can advise you on how best to monitor and report on them and aggregate data in real-time to make a real difference.
Our technology platform, Sustainion®, can extract environmental data across multiple office locations from anywhere in the world. The data is centralised into easy-to-digest reports, which you can analyse and take action on. It also aligns to multiple key regulatory frameworks, allowing you to report more accurately. It can be customised to do this across your entire supply chain – from understanding emission factors to providing insights on key environmental areas such as materials, water wastage and energy efficiency.
Make a positive difference to people
The other areas of ESG, ‘social’ and ‘governance’, are equally important to understand your business operations and its impact on the world (although these pillars of ESG have been known to be more difficult to track).
Understanding how you can make a positive difference in the social and governance areas of ESG will drive real value from not only an environmental point of view, but a people point of view.
A study by PwC found that investors are placing more emphasis on ESG goals in their portfolio companies, with 80% of investors saying ESG is an important factor in their decision-making and 50% expressing willingness to divest from companies that don’t take sufficient action on ESG issues.
Monitoring and reporting on ESG cannot only make your business more attractive to investors, it can also help them (and you) minimise risk. Our platform, Sustainion®, can give you visibility on critical information across your entire supply chain, such as human rights issues and modern slavery. This information can help you assess performance and mitigate risk, giving you increased transparency and accountability.
Another study by Bupa revealed that strong ESG strategies can help companies attract and retain employees. According to the study, 52% of workers would stay longer at a company if they had strong ESG commitments and they would recommend the company to others. Tracking and monitoring ESG performance can also help to create better working environments for the long-term.
Our dedicated team can work with you and utilise our technology to understand key performance metrics that can impact on overall wellness – from the quality of the air in your office to the natural light.
Turnkey’s platform, Sustainion® can help you use data to understand how your company gives back to employees, the environment and society. It can provide more clarity on key areas of the business, including the main contributors of greenhouse gas emissions and how you can make changes to improve performance.
It’s clear that putting ESG at the forefront of what you do can add value across every area of your business; understanding the most efficient way to reduce your carbon footprint, attracting investment, boosting productivity, saving money and improving overall employee wellness are just some of the positive impacts reporting and taking action can have.
Want to find out how we can add value to your business with our ESG Software solutions?
Contact our team to discuss further.
Environmental, Social & Governance (ESG) Tracking & Metrics – A Better Way Forward