In an era marked by unprecedented global challenges and a shifting business landscape, the role of organisations has transcended profit-making to encompass a broader responsibility for societal and environmental well-being. At Pierce, we recognise that the pursuit of growth is intricately linked with the pursuit of sustainability and businesses are not only judged by their financial performance but also by their contributions to the environment, society, and ethical governance. Embracing ESG isn't just a trend; it's a strategic imperative that holds the key to long-term resilience and prosperity.
ESG is a three-component framework set by the government measuring a business’s impact on Environmental, Social, and Governance. It encompasses guidelines, principles, and standards that gauge how effectively a company incorporates these considerations into its daily operations and overall business model.
This part of the framework focuses on how a business impacts the environment by looking at the products and services offered, the supply chain and operations. The business can choose to target specific areas of the organisation to focus on implementing sustainable practices.
A business may:
How a business performs in relation to the culture of its employees, suppliers, consumers and wider society.
A positive approach is to invest in fair and equal opportunities and conditions.
This refers to the decision-making within a business in relation to policies, rules and procedures and applies to the organisation's stakeholders including board directors, management and shareholders. Best governance practice is crucial to maintaining transparency, accountability, and fairness in decision-making, as well as safeguarding the interests of stakeholders.
A business should consider:
The below is not an exhaustive list but a few examples.
Adopting ESG within your business and following best practices can result in:
Contact our experts today if you have any questions on how ESG can impact your financial reporting.
Carbon Planner is free and could support you to become a more sustainable and climate-conscious organisation and help you to identify potential cost and carbon savings too. Use it to measure your carbon footprint by answering a few questions, get tailored actions and start building a plan to reduce your emissions.
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