May, 9, 2023
Nowadays, companies are being increasingly pressed by the society about their practices related to sustainability and social responsibility. ESG represents the combination of three key aspects that companies should consider in their management: Environment, Social and Governance.
In the context of ESG, the environment (E) refers to the impact that a company’s operations and products have on the environment, such as waste management, energy consumption, the use of natural resources, among others. The social aspect of ESG (S) refers to a company’s impact on society, including its employees, customers, suppliers, and the broader community. Social factors can include gender equality policies, diversity and inclusion, social actions, among others. The governance aspect of ESG (G) refers to management practices, from transparency in disclosing information, salaries and compensation of executives and advisors, and overall corporate governance structure.
With the adoption of ESG criteria companies enjoy benefits, such as reducing risks and costs, increasing competitiveness and attracting investments. In addition, the concern with sustainability and social responsibility is increasingly valued by consumers and investors, and this can set a competitive difference for the companies that stand out in these areas.
Therefore, it is important that companies get prepared for this new sustainable reality and start to incorporate ESG criteria into their management. This implies changing the organizational culture, involving all employees in the search for more sustainable and responsible practices.
To achieve this, companies must adopt a holistic approach to their management, integrating ESG criteria into all processes, from supplier selection all the way to preparing sustainability reports. In addition, it is important that companies evaluate their processes and practices periodically, always seeking improvement and adaption to the new demands of the society related to sustainability and social responsibility.
In short, adopting ESG criteria is critical for companies to be prepared for the new sustainable reality, and excel in the market. In addition to bringing benefits to the environment, society and corporate governance, adopting these criteria can set an important competitive difference for companies that succeed in this area.
Link Consulting working in partnership with Greenomy offers several advantages for companies aiming to comply with European regulations. Besides ensuring compliance with legal requirements, the solution offers the possibility of increased efficiency and speed in the collection, analysis and disclosure of information related to ESG practices of companies.
This solution enables reliable and accurate data collection, so that investors and consumers can take more informed and conscious decisions. In addition, while adopting of the solution, companies can differentiate themselves in the market, increasingly attracting more investments, and consumers engaged in the cause of sustainability and social responsibility.
If your company has not yet engaged in changing the world, it’s time to join the movement and adopt more sustainable and responsible practices.
