ESG and the Opportunities It Offers
ESG refers to the environmental, social and governance standards and performance by which investors and consumers judge a firm’s social and environmental conscientiousness. It is often incorporated into a business’s risk mitigation, compliance and investment strategies, and includes a variety of measurements and best practices. Some of the broad opportunities to improve ESG performance are outlined below.
The Pressure Is On
With sustainability now a boardroom issue, companies are under greater pressure to ramp up their ESG efforts. In a previous article, we provided an introduction to ESG in the supply chain and why it is so important. This article provided readers with the opportunity to download the first of three articles on this subject by SGS Maine Pointe and the University of Tennessee, Knoxville’s Global Supply Chain Institute (GCSI).
This first article, The Simple Guide to ESG in the Supply Chain, delved into why ESG has become critical, noting the importance of incorporating ESG as a key business strategy – implementing a proactive approach, ensuring senior leadership commitment, and considering long-term as well as short-term results.
We are pleased to now share the second article in this series, Best Practices: Implementing ESG in the Supply Chain, which provides practical insights into how organizations can take action on social sustainability and implement performance metrics. It includes case studies of companies that have rolled out highly successful EGS initiatives. The article also provides a 10-point plan for best practices.
How influential is ESG?
This latest article notes that significant financial capital is being allocated to achieve net-zero emissions, suggesting that access to capital is likely to be influenced by the ESG actions of the company.
Ramping up ESG Commitments
The article shows that companies are ramping up their ESG commitments. Nevertheless, businesses still need to strengthen their policies on diversity, equity and inclusion.
It echoes the conclusions of the US Business Roundtable, which reinforce the need for corporate CEOs to deliver value to all stakeholders.
Final Paper Coming Soon
The third and final article in this series will address ESG’s Return on Investment (ROI), discussing how and why ESG is becoming a key part of strategy. It will also explain how ESG can help companies to become good corporate citizens while positively impacting the bottom line.
We are SGS – the world’s leading testing, inspection and certification company. We are recognized as the global benchmark for quality and integrity. Our 96,000 employees operate a network of 2,600 offices and laboratories, working together to enable a better, safer and more interconnected world.