The Digital CFO

  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...

    Before starting ESG reporting , you should know what ESG is and how it could impact your business. It stands for Environmental, Social, and Governance. Simply put, your business should be environment friendly; you should treat employees like your family, and your business process should be transparent.   Why should be worried about your ESG score?   If your company isn’t doing good on the key developmental metrics – Environmental, Social, and Governance – you won’t get investment. Also, you will face roadblocks while walking in the path of growth. Governments of the world and investors prefer businesses that score high on the key developmental metrics.   Your next question should be ESG where to start and the answer is to check how you score on Environmental, Social, and Governance factors. For example, you should check your energy bill. If your energy consumption is high, it shows that you are adding to the carbon footprints of your country. Similarly...