Your Company Needs ESG (Environment, Social, Governance) Implementation: 4 Reasons WHY? According to JTL Infra Director Vijay Singla, ESG is now a top priority for businesses wanting to increase their awareness of how their actions affect the environment, social causes, and governmental laws. ESG has gone from being a niche concern to one that needs immediate attention as a result of the COVID-19 pandemic's extra effects, which showed how unprepared our global economy is for catastrophic upheaval. To position your business for future success, it is essential to establish an ESG strategy now. 2 FR ESG: What is it? An ESG strategy promotes sustainable and ethical corporate practices in the three areas of governance, s o c i a l r e s p o n s i b i l i t y, a n d t h e e n v i r o n m e n t . Environmental - Examines protecting the environment (e.g., carbon emissions, water usage, etc.) Social: Takes into account relationships and people (i.e., how you treat your workers, customers and communities) Governance: Examines best practices for managing a business (e.g., equitable board representation, anti-corruption policies, political contributions) By putting ESG guidelines into practice, your company may operate ethically and sustainably and give quantifiable information to customers and investors seeking more transparency from the businesses they do business with. 3 FR Importance of ESG within Organization Yo u r c o m p a ny c a n p ro f i t f i n a n c i a l l y a n d i n terms of reputation by implementing an ESG a p p ro a c h . I f y o u h av e n ' t b e g u n u s i n g a n E S G f ra m e w o r k , t a ke i n t o a c c o u n t t h e s e fo u r benefits. 1: ESG is the First Demand by Investors Investors are focusing more and more on the long-term threat to economic development presented by businesses, ignoring concerns like social inequity and climate change. As a result, they now view businesses that adopt ESG methods as longerterm investments with higher asset value, and they are increasingly asking for ESG disclosures from the businesses they invest in. 4 FR 2: ESG Has Six Positive Impacts on Business Enhances risk management Creates a competitive advantage through stakeholder interaction Encourages Innovation Makes financial performance better Build customer fidelity Draws and keeps employees interested 3: ESG is demanded by Government and Regulatory Bodies The globe will have a single reporting framework on ESG by the end of 2022, according to several of the leading ESG reporting frameworks, who declared their union in November 2021 at the COP26 United Nations Climate Change Conference in Glasgow. 5 FR 4: ESG Implementation prepares your business for a long-term run There is ongoing pressure to provide quick profits in business. However, broadening your scope to incorporate long-term sustainability is now essential and no longer a choice. Implementing ESG may make your company a valuable asset for your children, grandkids, and their children. Conclusion! The world is changing more quickly than ever, and ESG will unavoidably take center stage in your company's operations. You can safeguard your bottom line while positioning yourself for a prosperous and sustainable future by proactively adopting an ESG strategy now. 6
