What does ESG mean for your business?

Environmental, Social and Governance (ESG) is a set of regulations designed to assess a business’ influence on society, the environment, and its transparency on such matters.

With the CBI revealing that ESG impacts two-thirds of those looking to invest in a business, you will not only help the environment, but also grow your company.

Utilising an ESG strategy shows that your company is working towards meeting future environmental legislation, which may aid your growth even further.

Environmental

The environmental aspect of ESG centres on how you recognise and reduce your business’ effect on the environment.

This includes your supply chain, operations, and products/services.

Social

Secondly, social refers to how your business affects workplace culture and society as a whole.

Equality and fairness are a big part of this, and it’s important for you to offer equal opportunities to your staff, along with those operating in the supply chain.

Governance

Thirdly, governance looks at your decision-making, reporting, and the administration that goes into running your business.

Additionally, it focuses on the ethics of your company, as well as transparency with stakeholders about your endeavours.

Is ESG reporting mandatory?

Yes, it is mandatory, but only for companies with over 500 employees, or more than a £500 million annual turnover.

In 2019, the UK passed a law that will require all greenhouse gas emissions to be brought to net zero by 2050.

To reach this goal, the Government has pushed reporting obligations, and these are likely to continue to grow.

Need business advice? Get in touch with our team today.

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