With the advent of a rapid boom in introducing & maintaining the ESG norms, most of the businesses are turning sustainable on paper as we talk & many more plan to incorporate sustainability in their upcoming business growth model. Bloomberg Intelligence tells us that Global ESG Assets would cross a $53 trillion mark in the next 3 years.
Do you understand the magnitude with which Sustainability is Spreading its course?
The new giant in town, it is only imperative that we all introduce ourselves & utilise our role in the alteration. The global ESG norms will soon become a requisite mandate in all kinds of businesses, where are you with your Sustainability Report?
Carbon Sustainability, Culture Sustainability & Compliance Sustainability are three pillars for an organisational success in theory & through the understandings of the recent amazing trends after the Lockdown- when there were fewer cars on the streets, the employees-employer setup got better & more productive with the new remote working scenarios, due to shutdowns the emissions fell by 7% etc.
It can be a little daunting to start thinking about sustainability, because let’s put this out there, there has been a tremendous hype around Global Sustainability Goals & Sustainability trends & what-notes. We are woven in-between the consumer & the investors who are deeply vested with the clauses of Sustainability, so to help you we have devised a checklist for you to start thinking about Sustainability.
Read also: How to become a Sustainable Business in 2022?
Ultimate ESG Checklist for businesses to know & ponder upon!
Is ESG the right choice for you?
The first step is to understand if conversion to a Sustainable Business is right for you. The scalability of conversion & which norms apply to you the most are the ones that you should be thinking about. Check your industry-specific ESG viability here. Ideally, Compliance to ESG norms is soon going to become a mandate for all the businesses. The investors & corporate financiers are now adding an ESG protocol all over the world to filter credible companies. In addition to this advantage, businesses should be working collectively to aid the planet, ESG compliance ensures long-term sustainability, protection from outdation, motivation & retention of employees, better investor opportunities & so many other benefits.
Does ESG investment mean hampering your company’s returns?
Business leaders should make an ESG map for themselves before thinking about complete conversion. It is a well-sought understanding that many companies due to various reasons are not yet in a place for complete ESG compliance. You should not fret and make a list of protocols that affect you and your work-force directly, only after an informed decision-making can you sort what is best for you. The first step is to accept and do a Sustainability Accounting bef9re you delve deeper into how to make your business more sustainable.
Coming to the question, well, it is true for some companies that initial ESG investments lead to lesser returns, but this is usually a consequence of a dogged ESG framework for your company. ESG advocates wholeheartedly suggest that ESG investment funds are not lower than the equity funds of your company!
How urgent is ESG compliance?
The world is moving towards a sustainable way of being very rapidly. The businesses all over the world are converting, improving upon their business model into sustainable growth strategies. Reporting Framework as Mckinsey notes, is extremely desirable in these scenarios and however much a company invests in developing ESG compliant workspace, there would be no way to track progress if the accounting practices are not set in place. Recognising gaps & administering solutions is a continuous path for ever-growing businesses, ESG compliance works the same way. Environmental & social commitments are all well and good, but it is extremely important to have the right numbers, so as to be transparent & up-to-date with your own progress. There are various frameworks in the market that help companies decide upon their conversion mechanisms. Any shortcoming be it Environment based, social based or governance based should be adequately noted and cared for for a successful & a sustainable business.
Does ESG help you?
If you are a business looking to convert, ESG helps you in multiple ways. First, the investors are extremely interested in companies that entail sustainable grounds. Investors all over the world are now looking at companies that ensure a sustainable future both for the company & its workforce. This eliminates the troubles that ESG mandates would cause in near future & compliance to sustainability goals make it risk-free for the investors. Second, adherence to the Social segment of the ESG norms ensures apt employee motivation & employee retention over time. Good environment, equity driven workspaces make the employees feel important, which they are- the intent must be proven & shown with adequate action. Thirdly, we all have a certain degree of responsibility towards our planet & our people. It is all the more important that businesses that are a hub of people & are impact-driven should voice opinions & act towards the betterment & upliftment of nature & the society we live in.
Is there an ESG framework that is future-proof?
It is important to think of ESG norms & admissions as futuristic in nature, this would imply that the ESG conversions & the likes in the company are developed and designed in a way that it enriches the current climate of the business & also cater to its growth in future. ESG frameworks are developed with the broad criterias in mind- Environmental, Social & Governance. These criterias form the bases of what a company is made up of (people), what company stands upon (environmental) & what path a company should with surety take (governance). Once you start thinking along these lines, you start investing smartly. For example, you will identify gaps in your workforce skills & you as a company would work towards providing upskilling courses to your workforce.
There is usually no one good time to convert your business into a sustainable business, it’s mostly about adhering to the global norms & identifying the urgent nature of ESG compliance today for the success of your company. The ESG mandates are going to grow stronger by the day and it is very important for businesses to keep up with the flow to avoid losing important opportunities.