Esg Sustainability Reporting

The United Nations put forth a new of set of 17 universal goals, known as “Sustainable Development Goals (SDGs)” to address the environmental, social and economic challenges across the globe, which was adopted by 193 countries of UN General Assembly in 2015.

These SDGs were built on the Millennium Development Goals (MDGs), which was started as a global effort to reduce extreme poverty, child mortality, HIV/AIDS and other diseases, etc.

In addition to MDGs, the SDGs also include issues such as, natural resource management, sustainable consumption and production, effective institutions, good governance, the rule of law and peaceful societies.

All the countries have a shared responsibility towards achieving the SDGs’ target by 2030 and have a significant role to play locally, nationally as well as globally.

Since the adoption of the SDGs, there have been many positive initiatives.

Many countries have started incorporating the goals into their national budgets, plans/strategies and have set up coordinating structures for coherent implementation of goals across the sectors.

ESG channel factorsFirst of all, what is ESG?The acronym ESG refers to environmental, social, and governance criteria ( Environment, Social, and Governance ):these are the 3 main areas that represent the pillars of sustainable investment.As explained in the previous section, investors evaluate companies using ESG criteria to rate the quality ofthe investment and determine the associated risks.

In greater detail:Environmental factors refer to the company's behavior in environmental aspects such as resource depletion, climate change, waste, and pollution.Social factors are related to the company's treatment of people, workers, and local communities, including health and safety issues.Governance factors refer to corporate and governance policies, including fiscal strategy, corruption, structure, and remuneration.Why ESG is so important to your businessIn 2018, more than 170 new global regulatory measures were proposed (160% more than in 2017), 80% of which weredirected at institutional investors.In March 2019, the European Commission also affirmed once again the importance of sustainable investments bypublishing new rules on disclosure requirements related to sustainable investments and sustainability risks.It is clear that social responsibility is a hot topic in the investment community and regardless of legalrequirements, it is something that you must address within your organization.

Since many investors areincorporating ESG factors into the investment process, integrating sustainability elements into your strategycan definitely have an impact on your income.This requires a change in mindset: ESG should be seen as an investment, rather than a cost.

As Larry Fink ofBlackRock's states in his 2019 letter to CEOs, “earnings are not inconsistent with purpose; in fact, profit and purpose are inextricably linked.

"What's more, companies that have incorporated ESG into their strategy have seen several benefits, including increased market confidence and shareholder value.However, planting some forests here and there will not really make a difference.

If ESG initiatives are not a representative of the business and environmental impact of the company, these efforts can be lost on investors.

Sphera’s Integrated Software, Data, and Consulting Solutions aim to help companies achieve their sustainability goals.

Sphera’s sustainability experts help companies develop net-zero and circularity roadmaps in compliance with 2050 targets.

They help identify priorities, establish science-based targets for measurable improvements, and streamline reporting and analysis.

Strong ESG performance leads to higher returns on investments, lower risks, and better resiliency during a crisis.

Summary Yesterday’s business leaders focused on beating quarterly profit targets.

Tomorrow’s successful business leaders will focus on sustainable profits.

Public anger at the lack of action on climate change, corruption, income inequality, tax avoidance, and other social ills makes it harder for CEOs to ignore sustainability.

The reluctance of many CEOs to fully engage with sustainability can be attributed to the age-old view that it will hurt profits.

However, according to GlobalData's research, companies that embrace all three elements of sustainability will outperform their peers.

CEOs that are too slow to improve their company’s approach to sustainability will see an exodus of customers and a drop in profits far sooner than they ever imagined.

Sentrient's audit and compliance reporting system enables workplace relations and safety programs to be rolled out online and makes compliance reporting easy.

Watch this video for more details.