A Beginner’s Guide to ESG Standards
As businesses worldwide seek to improve their sustainability credentials having experienced a shift in focus during the coronavirus pandemic and now looking to get back on track, ESG standards, CSR policies, and the maximization of value sit at the heart of organizational efforts through 2023 and beyond. But what are ESG standards, what do they include and how can Procurri help boost yours? Read on for more…
What are ESG Standards?
ESG is an acronym standing for Environmental, Social and Governance. ESG standards, therefore, are measures against which an organization can judge its ongoing contribution toward sustainable and viable development, and its management of the negative impacts its operations have on the planet. Usually, ESG standards also include transparency and accountability standards and act as a framework for analysis of an organization’s financial viability, stability, and sustainable future.
What is ESG Investing?
ESG investing refers to the investment in companies that perform well against their own ESG standards as part of an investment strategy. Rather than just analyzing the financial factors of an organization, ESG investors use their performance in this sphere to identify material risks and growth opportunities presented as a result of ESG conditions that are likely to impact a company long-term.
ESG investing ensures that investments are made as ethically and sustainably as possible while also establishing its potential over a more extended time period.
How does ESG interact with CSR?
CSR is an acronym for Corporate Social Responsibility and usually forms a policy within an organization to help promote sustainable and ethical operations. ESG standards form a framework within a business’ CSR efforts that take a deeper dive into such topics: analyzing relevant factors, assessing an organization’s performance in each area, and presenting information on potential areas for growth and improvement in the future from sustainability and risk perspectives.
What is covered by each ESG category?
Of course, Environmental, Social and Governance form fairly broad headings, so plenty of organizations’ operations can be measured against these standards. Generally speaking, the following can be considered basic ESG considerations:
|Direct and indirect Greenhouse Gas (GHG) emissions||Working conditions for employees||Organizational ethics and best practice standards|
|Carbon emissions from fossil fuels||Equal opportunities||Board diversity and structure|
|Resource depletion||Fair pay scales||Executive pay|
|Waste management processes||Employee diversity and inclusion||Management diversity and structure|
|Water and energy efficiency||Employee relations and communications||Bribery and corruption policies|
|Health and safety policies and processes||Political lobbying|
|Modern slavery statements, policies, and processes||Investment choices and taxation strategy|
|Local community involvement and initiatives||Compliance and due diligence, data security standards|
How can Procurri help your business’ ESG credentials?
Procurri adds value to just about every aspect of an organization’s IT portfolio from installation to eventual decommission, as our services focus on achieving the most sustainable position possible for all IT assets. However, working with us as a certified Carbon Neutral Organization also helps demonstrate the commitment toward sustainability throughout the supply and collaboration chain: proving a business’ dedication toward being better and working with better.