More than just best practice, ESG is crucial for business health - FMJ

Abstract

Companies who are strong on ESG are seen as more stable for investors, particularly as regulators now routinely scrutinise businesses' financial and environmental disclosures. Rising talent is also more likely to be attracted to companies with good ESG credentials, with studies showing they prefer to work for brands perceived as ethical. Through use of centralised systems, companies can record and analyse building or project emissions, which in turn allows them to accurately feedback to stakeholders on sustainability performance and achievement of goals. The company has a proven track record of initiating innovative approaches to social impact, benefitting the global community, and minimising their negative effects upon the environment, which is achieved through collaborative working arrangements and actively measuring the business' direct and indirect effects. Engagement with all stakeholders is key to good ESG practice, however the inclusion of employees is of particular consequence during the formation of company sustainability policies and achieving net zero targets. Many individuals are now demanding more from companies as consumers but may not realise the steps their own company is taking to implement and achieve sustainability goals. Setting out company climate goals which can then be shared with key investors allows a company to be held accountable to its agreements and targets, as well as allowing them to work closely with others to work towards an achievable, cohesive and integrated sustainability and social value strategy.