Sustainable management has become synonymous with order and harmony in the company. However, many companies still forget that such management is not just a concern for the economic balance itself in the enterprise. It is equally important to monitor external factors, which only after accounting indicate the real quality of a particular company.
Therefore, this topic should be addressed so that more companies can include ESG activities in their organization. Why should you base your business model on these metrics and what are they? What do they mean for your business? What do they mean for the further development of the industrial revolution?
ESG: The Inevitable Future of All Businesses, Companies, and Corporations
Let’s start by deciphering the abbreviation ESG. It consists of three main pillars: Environment, Social Responsibility, and Corporate Governance. This applies to environmental issues, social issues and corporate governance. It is a way of reporting that involves a thorough assessment of the company’s impact on its environment and identifying specific goals that lead to the sustainable and responsible development of the enterprise. Implementing this strategy in your company can have many advantages, which is why it is increasingly integrated into the business model. It is a continuation of the previously existing Corporate Social Responsibility Standards (CSR) – the corporate social responsibility strategy. However, ESG covers much more non-financial areas, which allows the market to better determine the value of a company. In the near future, the introduction of ESG in the long-term strategy of the enterprise will become mandatory. Starting from 2023, all large companies and companies listed on the stock exchange, which receive certain revenues and have an annual balance of PLN 85 million, will be fully operational from 2026. Therefore, it is worth learning the basic principles of ESG right now and thinking about how to prepare for the implementation of this business strategy in your company. I guarantee that this will become the basis for further development of your business (and not only).
E = Environment
What is the ESG environment and how is this strategy implemented? Businesses that support the environment are primarily focused on reducing funding for high-carbon sectors, promoting an environmental position in the company’s sector and beyond, and supporting green products and services. They also pay attention to the choice of their partners, thereby promoting climate justice. Such companies are also strengthening the practice of ESG management and climate education. They also seek to ensure that their actions contribute to: m.in to generate CO2 emissions energy consumption or natural resource estimation. This applies equally to the logistics of delivering the developed solutions, for example, by reducing the emissions associated with order fulfillment. This also applies to the introduction of a circular economy model, i.e. a zero-waste policy. Environmental activities are also the participation and support of environmental initiatives and activities, as well as large-scale activities in the environmental solutions sector.
What benefits can this attitude bring us? Unfortunately, there is still a myth that being ivf expensive is bullshit. A company that implements such a strategy has a lot to gain in the long and short term. What exactly?
The most notable advantage of companies that use environmental responsibility in their business model is m.in strengthen the company’s reputation and brand and use advanced interaction with climate issues as a difference in the market. For many investors, this attitude becomes the predominant factor when choosing their future partner. Investment in the environment for economic reasons can also help strengthen the position of the beneficiary of EU funds aimed at energy transformation and combating climate change.
At the same time, such an attitude promotes business development and adapts the enterprise to the upcoming changes in the economy associated with the climate catastrophe, while maintaining profitability. By supporting the environment, it’s not just the company itself that benefits, but all of us. Moreover, this is not only an investment for the moment, but also for the future. For you, your children, your grandchildren and other descendants who will live on our planet even after you leave. So think about what kind of land they will inherit from you, because it will be their home.
S = Social responsibility
Social responsibility is also part of the ESG. Companies implement it in different ways. There are many opportunities because there are many social initiatives that you can support. This support consists of m.in participate in volunteer activities, actions, and debates that promote respect for human rights and clearly oppose any social exclusion. These companies stand on the side of solidarity and justice, supporting the most needy in their activities. They also care about supporting education, culture, and healthy social attitudes thereby expanding the circle of recipients and beneficiaries of the changes being made. A company that adheres to this attitude not only contributes to improving the general mood in society, but also affects the improvement of conditions in the company itself. Thanks to it, employees feel safe and at ease. Many talented people struggling with social isolation find in such companies an oasis, a place where they can feel like everyone else. Nothing is more important than being yourself.
By implementing a social responsibility policy, we can feel safe not only inside our company, but also outside of it. You can talk about this a lot, but in this case it is mainly actions that are important. Being part of a company that can set an example is not only a joy for its employees, but also a breath of hope for those who have been caught up in it so far.
G = Governance
Corporate governance is a business model that allows a company to develop in a safe, friendly and transparent way when identifying goals and threats in the course of their implementation. This is the supervision of internal and external factors, which sets specific tasks for a particular company. The goal may be to improve the quality and level of work, increase the level in the field of cybersecurity privacy , respect for the dignity of employees, customers, and partners, and ensure fair remuneration. Risks may include, for example, factors related to climate change, a negative image of the company, violations of labor rights by individual bodies of the company, or lack of financial reliability. The ability to identify risks and mistakes in your company and its management is very important. This allows us to see the problem that is dragging us down and focus on solving it. Corporate Governance Report, can be a harbinger of the beginning of changes in the company for the better.
ESG: Is it worth it? Answer these questions for yourself.
Would you like to work or work with a company that pollutes the environment or doesn’t respect its employees? Would you like to do business with people whose financial security is in question? Would you rather work with a company that sees its mistakes and tries to fix them, or with a company that doesn’t do anything to make a difference? Would you like to work in a company where you feel left out or don’t feel comfortable? Would you recommend a company that pollutes the air you breathe to someone? Wolałbyś inwestować w firmę, która jest przygotowana na rewolucje klimatyczną, czy tą która się nią nie przejmuje? Chciałbyś być częścią firmy, która się rozwija, czy tej która bagatelizuję realne zagrożenia? Wolałbyś, aby twoi partnerzy pomagali potrzebującym, czy stawali za nimi mury?
The future is in your hands. Thanks to the ESG strategy, not only does your company benefit, but so does the environment beyond it. Embrace a new approach and lead the industrial transformation.
