The focus of the investors and stakeholders are shifting where non-financial factors had grow its importance alongside the financial factors in business milestone that is achieving consistent increase in company’s profits. These non-financial factors are called ESG, an implementation that promises sustainability to business and as well to the world. Therefore, what is ESG and why integrating ESG in business is pertinent?
ESG is an acronym for ‘Environmental, Social and governance‘, referring to a framework that helps organisation evaluates the sustainability and ethical impact of their investment in a business. As what the acronym represents, ESG is pivoted on three key criteria:
The ‘E’ in ESG refers to the environmental criteria. Significantly, companies both ‘affect and are affected by’ the environment, thus E covers the usage of energy resources by your company, waste management including carbon emission and effluent as well as climate change.
S which is the social criteria tackles the relationship aspects of an organisation with its stakeholders. This aspects include everything within the company (workplace policies, safety and health, employee relations and diversity, workers’ rights) as well as its reputation with the people and institutions in the communities where the company do business.
G is the governance criteria that focuses on how a company is managed which include the adoption of practices, controls, and procedures for governance, compliance with law, meeting the stakeholder requirements and making effective business decision.
Integrating ESG in business is not merely a strategy for business growth. It is about creating sustainability to the future of business and also the world through delivering value and strengthening the environment and societies. ESG is beneficial in risk approach and and its evolution into a more proactive shows higher potential as an emerging factor for financial growth.
E-SPIN being active involved in assist enterprise and government agencies customer on the Environmental, Social and Governance (ESG), business continuity, disaster recovery (BCDR), and Governance, risk and compliance (GRC) and operation requirement, as being part of E-SPIN Availability Management solution. Feel free to contact E-SPIN for your specific operation or project requirement, so we can assist you on the exact requirement in the packaged solutions that you may require for your operation or project needs.
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