The Digital CFO

    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...

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 t...

If your company isn’t doing well on ESG measurement , you could have a big problem in the future. Everyone including world governments, global investors, clients, and non-governmental organizations working to save the environment wants companies to behave responsibly. Let’s discuss responsible behavior The first is the environment where you have to score high. You use energy that increases your carbon footprint. You should look for ways to make your business energy-friendly. It is your responsibility to reduce your carbon footprint and it is possible only when you use clean and green technology. You should optimize your energy consumption to become an energy-friendly company. Second, is the social front where you need to practice equality. Your ESG reporting should show that everyone is equal in your business and you give equal opportunities to everyone. Your business should be a place where anyone can find a place based on talent instead of color, caste, religion, or region. It is...

As expected from a responsible company, you should be worried about your ESG rating . Your company has to perform well on the environmental, social, and governance front. Your company should be environment-friendly. Your social structure should be supportive, and your governance should be strong.  Let’s simplify the topics   Environmental : Everyone knows that the environment has become too polluted to become clean with any measure other than reducing carbon footprint. And the responsibility of reducing the carbon emission lies on companies like yours. Today every company has to be environment-friendly. In your case, you need to reduce the carbon footprint of your company.  Social : When you hire an employee, what do you see in that person. When the focus has to be on ESG , you should look only at talent. Your company should give equal opportunity to everyone and you should hire employees without any discrimination of color, caste, religion, and region. Also, the...