Why Should You Work On Your ESG Rating?

ESG Measurement

 

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 hassle-free 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

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