Why is ESG crucial?
Environmental, Social and Governance (ESG) is becoming more important to a multitude of stakeholders, including consumers, investors, credit rating agencies, lenders and regulators.
ESG-related concerns are becoming more meaningful to an increasing number of consumers, especially Millennials and Generation Z/iGens. Many socioeconomic factors, such as protecting the environment, addressing climate change and poverty, and diversity based on race, gender and sexual orientation, are extremely important to these groups.
This ever-expanding base will continue to have a lot of influence and make purchasing and investment decisions based on ESG.
These stakeholders, alongside investors, employees and society in general, demand that companies go beyond mere compliance with legal requirements and, instead, have a positive impact that reflects a true commitment to sustainability leadership.
Assurance equals trust
The majority of organizations report some form of sustainability information. However, to be effective in terms of investor engagement, this information must come with assurance, and only about half of organizations provide this while even fewer use an auditing company or affiliate.
Assurance creates trust in ESG reporting. Verification against a recognized standard optimizes an ESG report’s value. Currently, one of the dominant assurance standards is the International Standard on Assurance Engagements 3000 (ISAE 3000), which focuses on assurance procedures.
A service of many firsts
Jabil Inc. chose SGS to conduct third-party assurance of selected KPIs for its 2022 sustainability report. This was the first time the global manufacturing solutions provider had certain new KPIs included in the scope. We not only verified the numbers, but also provided useful information on improving the process and what to look for next time, so Jabil is better prepared.
Björn Nyqvist, Global Program Manager EHS at Jabil, said: “There was great communication from day one, from scheduling kick-off meetings to catch-up calls to ensure that the project was completed to our specifications.”
This was the first year Jabil partnered with us to externally assure its sustainability data. It was also the first time the company extended its scope of assurance beyond energy and water.
“The audit team was very professional and flexible, making us feel more comfortable and creating transparency,” said Mr Nyqvist.
“Interested in continuing the partnership”
The report exceeded expectations, with all verified KPIs and the respective verified values, plus additional remarks.
“We were delighted with the service and report, which were exactly what we were looking for. The report included new items not seen in our previous verifications.
“We learned a lot from the process and are interested in continuing the partnership and improving the process even more. We may extend the scope of assurance next time,” added Mr Nyqvist.
Putting sustainability front and center
At Jabil, sustainability is the integration of environment, health and safety, social equity and responsibility, governance and economic growth to create thriving, healthy, diverse and resilient business operations for employees and the communities in which they live and work – for this generation and generations to come.
The international company understands its responsibility to be good stewards of natural resources and positively contribute to global environmental and social challenges. Jabil listened to its stakeholders and has a strategy and goals that align with the social and environmental challenges they care most about, and the areas the company believes it can make the biggest impacts.
Jabil has three pillars that form the foundation of its global sustainability efforts:
- Its people and communities
- Its operations and resources
- Its innovative solutions
The report will enhance this mission and help Jabil better convey its sustainability credentials to numerous stakeholders.
Learn more about SGS ESG services.
For further information, please contact:
Associate Marketing Manager Knowledge
t: +44 7912 426878
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