Uploaded by persofi ESG

Why Should You Work On Your ESG Rating

Why Should You Work On Your ESG Rating?
Before you start ESG Measurement of your business, you should first understand what it is. You
prepare annual reports of your business where you show the profit made, taxes paid, and other
assets created. But these reports show only the financial side of your business.
If you are of the opinion that investors are interested only in profit then you are wrong. They are
more interested in knowing whether your business is eco-friendly. If you are spoiling the planet
just to make a profit, you won’t get a high rating from investors.
Is your business eco-friendly?
First, determine how much energy you need to run your office and then check how much energy
you consume in a month. If you consume more than needed electricity, you should look at what
is making your business guzzle more energy. Also, you should look for ways to reduce your
reliance on electricity to increase your ESG rating on energy.
Is your business social?
Ask your employees how do they rate your business as an employee-friendly business? Their
feedback will give you a good understanding on the factor how you are doing on the social
factor. They need a friendly environment to work. Also, they need all the necessary facilities like
clean drinking water, washrooms, and restrooms.
Your ESG measurement relies largely on your performance on the social factor. Check whether
your office or factory is lacking in the necessary facilities. If yes, then you should provide the
missing facilities to your employees. Also, you should provide training and growth opportunities
to workers. In short, they should be willing to continue working for your business.
How do you govern your business?
You have an accounts department that prepares your account books to show that you have paid
your taxes and that you have built assets. Also, you have an HR department that takes care of
your employees. But the process should also be transparent. For example, the workers should
have access to data related to their working hours and benefits.
Improve governance by making your business more transparent. And don’t hesitate in changing
the rules to become employee-friendly. Your focus should be to run your business in a hasslefree manner. With these steps, you can take your ESG Rating a level up than your competitors.
For reporting, you can download a dedicated format that can show ESG performance of your
business in the right manner.
Please feel free to reach out to me at jeffrey@persofi.com Call us at: +44 7308 129916 and +972
54 6668182
Website: https://www.persofi.com