Why is ESG important to every organisation? The business world has changed. This can be witnessed as today’s business talk is no longer about expanding and increasing profits. Likewise, the investment has shifted its focus, from a business that thrive in financial growth into a company that covers both financial and non-financial factors. Significantly, many sustainable focused strategy and regulatory frameworks has been introduced to achieve this objective, where recently we arrived to the latest and most evolved framework called ESG (Environmental, Social and Governance).
Beginning from EHS (Environmental, Health, and Safety), in the 1980s which focuses on improving workers labour and safety standards as well as reducing pollution, the sustainable focused strategy and regulatory frameworks keeps on evolving to fit the volatile business world today. In 1990s, EHS evolves to Corporate Sustainability where the focus pivoted on delivering products and services in sustainable manner. Yet again the framework continue to evolves hence, in the early 2000, Corporate Sustainability is slowly shifted to CSR (Corporate Social Responsibility), a framework that highlights the need for an organisation to give back to the community. Subsequently, as the non-financial factors had started to show impacts on business, the rise of ESG happens in the late 2010s and into the 2020s, where the frameworks combines environmental, social and governance criteria in establishing sustainability, for business growth as well as social and environmental well being.
ESG offers many benefits to business which include better decision making, cost reduction, improve reputation, attracts talents, enhance employees productivity and ensure regulatory compliance. With this overwhelming benefits, every organisation from different sizes (Large, medium and small) should embrace ESG initiatives. ESG involves the adoption of ‘green’ practice, where using greener packaging, digital receipts and renewable energy, make organisation to have better waste management thus reduce cost and also lower their carbon footprint. Moreover, more and more investors seek to invest in organisation with high ESG standards, thus companies with well established ESG initiatives can attract more interest from the investors.
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.
Other posts that may interest you:
1. What are the differences between ESG and CSR?
2. Business world is changing: Integrating ESG in business
3. How ESG Initiative Creates Value in Business
4.The Assumptions in Business Continuity Plan
