Be at the forefront of ESG - from strategy to reporting

ESG is a sustainability framework that works to integrate environmental, social and governance factors – both risks and opportunities, into an organisation’s strategy to build long-term sustainability and value creation. ESG strategies can help companies achieve long-term sustainability, drive economic vibrancy, and deliver long-term value through effective engagement with stakeholders.

Environmental

The environmental factor in ESG, considers a company’s responsibility towards the environment, herein factors such as; energy use, greenhouse gas emissions, pollution, waste generation, impact on biodiversity, and use of natural resource are often considered. 

Social

The social factor in ESG examines how well a company manages relationships with employees, suppliers, customers, and the community. Herein, areas that are often considered are; Diversion, Equity and Inclusion, human- and labor rights, health and safety, as well as customer data and privacy.

Governance

The governance factor in ESG is concerned with how a company manages itself. Governance factors often considers leadership, internal controls, executive pay, audits, and shareholder rights, and focus on risks within areas of; compliance with accounting standards, tax, whistleblower mechanism, and bribery and corruption. 

Investors increasingly expect transparent reporting aligned to industry ESG standards to help companies engage with their stakeholders and communicate ESG performance consistently and transparently.

ESG criteria includes a wide range of non-financial scoring categories, used by investors and other stakeholders to assess the impact of a company’s products and business practices on sustainability and social causes. It is therefore important for organisations to consider how to best perform on these scores.

Similarly, there is an increased societal awareness of the ESG responsibility of organization when it comes to monitoring their own impact on the environment, social and governance factors. Meeting this societal awareness with a strong ESG proposition and strategy can increase an organsiations brand awareness, brand rating, consumer loyalty, and employee retention.

We can help you tailor your ESG strategy to the risks, realities, and ambitions of your business and help you build an ESG solution tailored to your strategic sustainability journey. 

ESG is the abbreviation for Environmental, Social and Governance, and thereby focuses on the actions that a company is undertaking within these areas. It should hence be understood as a framework that allows organisations to work more comprehensively with sustainability.

CSR is short for Corporate Social Responsibility and can be described as a business model where companies put focus on the impact they are having on wider society. This also includes the environment and people in society.

ESG and CSR are both concerned with the impact a company has on the environment and society. The difference is, however, that CSR is a business model used by companies, whereas ESG is a criteria that investors use to assess a company and whether they should invest or not. CSR can be thought of as more qualitative and can be incorporated by communicating internally and externally that a company is committed to being more sustainable and responsible.

ESG is on the other hand more quantitative, as it builds on measurable goals such as a committing to net zero before 2030, and is being centered through new EU directives, such as the CSRD that requires organisations to report on ESG.