With climate change and global warming at its peak, it is becoming increasingly important for organizations to grow operations in a sustainable manner. But how can enterprises continue to achieve holistic growth? Is it possible to keep socio-economic integrity at the centre of decision-making?
Leadership teams at large enterprises consistently need guidance to invest and audit their business performance in order to align it with sustainability goals.
ESG intelligence (Environmental, social, and governance) has become a sort of cornerstone for most companies today. ESG is viewed as an opportunity for increased investment and a better competitive edge by many companies.
Understanding ESG Intelligence
ESG Intelligence means collecting, analysing, and utilising environmental, social, and governance data to assess and enhance businesses’ sustainability and ethical practices.
ESG Frameworks and Standards – Global
Businesses use several key ESG reporting frameworks and standards for ESG reporting. Let’s have a look at some of them.
- The Global Reporting Initiative (GRI) offers a framework for companies to measure and report on their sustainability performance.
- The Sustainability Accounting Standards Board (SASB) provides standardised disclosure guidelines by identifying industry specific ESG issues.
- The Taskforce on Climate-related Disclosures (TCFD) helps companies disclose climate change related risks and opportunities in their financial reporting.
The decision of which framework or standard to employ depends on a company’s strategic goals and stakeholder demands.
Leverage ESG Intelligence For Your Business
ESG Intelligence solutions give valuable insights that allow companies to assess their position in the ESG journey.
Better Risk Management and Long-Term Sustainability
Combining ESG factors with your in-house risk management practices allows you to detect and address possible risks in a preemptive manner.
You must ensure alignment with standards for achieving sustainability and resilience in the face of environmental and social changes.
Enhanced Reputation and Brand Value
Consumers are becoming more socially and environmentally conscious day by day. A survey report states that customers are changing their buying habits post Covid. GenZ today are willing to pay more for brands that have a purpose and align with their core value.
ESG pushes us to keep consumers at the centre and understand the demand. The data helps you align your offerings and positioning around what your customers value.
Increased Access to Capital
ESG-centric investments are increasing in number. Not just that, investors are more inclined to invest in companies that align with ESG standards. In fact, early-stage venture capital investors are interested in supporting start-ups that actively facilitate ESG goals.
So, if you want to attract a wider pool of investors and access capital, integrating ESG intelligence for your business is the way to go.
Improved Stakeholder Engagement
Effective stakeholder engagement is essential for businesses to understand and address their expectations and concerns. ESG intelligence allows you to gather and analyse data on stakeholder preferences, needs, and sentiments related to ESG issues.
A better ESG score can help attract new stakeholders and investors for business growth as it brings transparency to data. ESG further helps foster better relationships. Today investors are keen on investing in organisations that value proper governance and sustainability practices. Failing to do so might harm the growth prospects in the long run.
The Bottom Line
SEBI has made it a must for Indian corporates to disclose their ESG initiatives. This further shows the importance of ESG Intelligence.
To improve risk management, build a positive reputation, attract investments, and create long-term value, businesses can employ D&B’s ESG Intelligence services. Leverage their trusted data resources and expertise to drive positive organisational change.