What You Should Do For Improved ESG Measurement?

ESG Reporting

Investors are looking for your ESG Reporting instead of balance sheets. You pay your taxes on time. Also, you give benefits to your employees and investors and you share data to prove that you are doing good in business. But investors want to see more than what you show. 

First, is the environment…. 

You know that the environment has become polluted and that it is profit-making companies that work without caring for the planet. For example, take a manufacturing company that uses chemicals that are harmful to nature. It could be a growing business, but it isn’t good for the planet. 

Your ESG measurement of the environment would be lowest if you are exploiting nature for profit. You could be doing well on the finance factor, but your environmental rating would be the lowest. And investors are favoring businesses that are eco-friendly. 

The second is social…. 

You have a business where you have employees that work for your profit. Do you share profit with the employees? Do you provide all the necessary facilities to the workers? Do the workers get the proper resting time? These are some of the important factors that show how you are performing on the social factor. 

Your performance on the social factor would be visible on ESG reporting. While sharing profit with workers would reduce your profit a little, it will increase your performance on the social factor. It will make your business appear human-friendly and investors will give a high rating to your business. 

The third is governance…. 

As a business, you have a management that looks after the day-to-day affairs of your business. If your business process maintains secrecy, you won’t get a high rating. While you can give an excuse to maintain privacy for security, your investors won’t accept the excuse. They would give you a negative rating. 

If you want to improve your rating on governance, you should bring transparency and impartiality to business practice. With good governance, you can do well in ESG Measurement and get a favor from the targeted investors. Investors are ready to invest, but they want to support businesses that are eco-friendly, social, and good in governance. 

Final Thoughts 

If you aren’t paying heed to your ESG performance, you are likely to lose investments that can boost your expansion plans. If you need investments then you should work hard to do well on ESG factors that are Environmental, Social, and Governance. 

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

Comments

Post a Comment

Popular posts from this blog

What Is Included In ESG Reporting?

Image
    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, you can check other fa
Read more

Why Should You Work On Your ESG Rating?

Image
  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 employ
Read more

How To Enhance ESG Measurement Of Your Company?

Image
ESG measurement of your business shows the overall performance of your company on key developmental metrics that are Environment, Social, and Governance. Let’s discuss Environmental, Social, and Governance factors in detail Environmental : You know about pollution and how it is harming the planet. But you are silent because you think that saving the environment is the responsibility of the government. Here you are making a big mistake. You are running a company and you are also responsible for keeping the environment safe. Smart investors want to see you as a savior of the planet. You should switch to green technology if you are still using the technology that pollutes the air, water, and soil. Social : How do you hire employees? Do you have the policy to promote the employees? What is your work environment? Do your employees get the freedom to raise their voices in your office? In ESG accounting, you have to show your Human Resource policies related to hiring and promoting talent
Read more