What is ESG environmental sustainability?
ESG means using Environmental, Social and Governance factors to assess the sustainability of companies and countries. These three factors are seen as best embodying the three major challenges facing corporations and wider society, now encompassing climate change, human rights and adherence to laws.
In recent years, investors have become more aware of the importance of ESG criteria in their investment decisions. As a result, many businesses have begun to integrate ESG into their operations and business strategies.
ESG can be considered a subset of sustainability, which is defined by the UN World Commission on Environment and Development as ‘meeting the needs of present generations without compromising the ability of future generations to meet their own needs’.
What are the goals of ESG targets?
Environmental, social and governance goals are objectives set within a business to help the organisation effectively manage its impact on society and the environment. These goals evolve around the three categories of ESG as discussed above. ESG goals define an organisation’s vision, direct strategy, and hold the company accountable.
Environmental ESG Goals
- Climate action: Develop a net zero carbon emissions goal and implementation strategy by 2022. Measure, record, and report business scope 1,2 and 3 emissions. Reduce scope 1,2, and 3 emissions on an absolute basis by 30% by 2030.
- Clean energy: Switch to a green tariff, purchase renewable energy certificates and off-site power purchase agreements, or/and install your own renewable energy source on-site.
- Clean water and sanitation: Reduce water use across business operations by 20% over 10 years.
- Responsible consumption and production: Install recycling bins throughout offices. Seek waste materials for production processes to implement a circular economic model.
Social ESG Goals
- Good health and well-being: Provide a health benefits package to employees that exceed the national cross-industry benchmark.
- Decent work and economic growth and reduced inequalities: Meet or exceed the minimum living wage.
- Gender equality: Achieve an employee gender balance of 50% female and 50% male across the organisation. Maintain or exceed 30% women on the Board of Directors.
Governance ESG Goals
- Sustainable cities and communities: Achieve LEED Silver or better on 100% of new building developments. Evaluate the cost and feasibility of LEED certification for all new developments.
- Decent work and economic growth: Cut business costs by 15% by 2030 through efficiency improvements.
- Partnerships for the goals: Devise an effective stakeholder engagement strategy for collaboration to address key sustainability issues.
- Industry, innovation, and infrastructure: Reduce product processing time by 20% over the next five years.
WHY IS ESG IMPORTANT?
ESG has multiple benefits. It brings awareness to the different climate issues that are occurring and encourages businesses to adopt practices and policies that are better for the environment. For the social part of ESG, employees and shareholders are created equally, and their health and safety are considered. It helps avoid bad business practices. It also forces companies to innovate, which not only uncovers different opportunities but can open up more jobs. ESG frameworks are important to sustainable businesses. They attract investors, build customer loyalty, improve financial performance, make operations sustainable and gain a competitive edge.
ESG considers how a company safeguards the environment and its policies addressing the environment, as well as how the company manages its relationships with the community, customers, employees, and suppliers it conducts business with . It also considers the company’s leadership, internal controls, audits, and shareholder rights.
How can Global PCCS help you comply with ESG environmental sustainability requirements?
- The main aim of Global PCCS is to guide you in being accountable for ESG environmental sustainability requirements.
- Our experts will assist you to comply with ESG environmental sustainability requirements.
For more information on the ESG environmental sustainability requirements please book a free consultation by filling the form or writing to us at Girish N@globalpccs.com