Environmental, Social, and Governance (ESG)
Driving Sustainability For A Better Tomorrow
What is ESG?
ESG is an acronym for Environmental, Social, and Governance. ESG takes the holistic view that sustainability extends beyond just environmental issues. ESG is best characterized as a framework that helps stakeholders understand how an organization is managing risks and opportunities related to environmental, social, and governance criteria. Stakeholders do not just include investors but also customers, suppliers, and employees. All of them are increasingly interested in how sustainable an organization’s operations are.
Is ESG suitable for SMEs?
Is your business too small to justify making sustainability a priority? You may need to think again. Some world statistics:
- 67% of privately-owned companies have ESG initiatives in place
- More than 3 out 4 (77%) small and medium sized companies have a formal purpose statement related to ESG.
- Nearly 1 out 5 (18.5%) small and medium sized companies are using ESG standards.
- 76% of consumers say they will stop buying from companies that treat the environment, employees, or the community in which they operate poorly.
Sustainability is now a top priority for every business, regardless of its size and scope. This is due to growing public concern about the consequences of climate change and the exploitation of natural resources, as well as the human rights and inequity issues.
The Benefits of ESG for SMEs
SMEs that embrace ESG can look forward to the following benefits:
Competitive Advantage
Having an ESG program in place helps boost brand recognition and promotes brand loyalty. Today’s consumers and clients are increasingly aware of ethical spending and care more about what a company does to support sustainability. SMEs that have taken steps to meet sustainability concerns (having an ESG program) have been known to attract more customers and clients.
Cost Reduction
By implementing an ESG program, SMEs can track key metrics like energy consumption, water consumption, waste management costs, and raw material usage. This tracking ability is a prerequisite for companies to plan programs to improve efficiency, which leads to reduced costs associated with energy and water usage or waste management. In addition to improving cost management, ESG programs also allow for operational efficiency, less exposure to fines/penalties, better risk management, and improved innovations.
More Attractive to Banks and Investors
Attracting the attention of investors or banks is one of the biggest advantages of having an ESG program. The growing public concern connected to climate change and sustainability is causing investors and banks to look more closely at sustainable companies to encourage this movement.
Supply Chain Prospects
Much like investors are paying more attention to ESG, many companies are looking for supply chain partners that embrace sustainability efforts. For example, many retail stores are making decisions not to stock products made by companies considered to have poor ESG performance.
Attraction and Retention of Talent
Today, many job seekers are looking for more than just a paycheck. They want to enjoy their jobs, feel appreciated, and make a positive impact. Working for a company with strong ESG goals appears to be the top factor for employees’ job satisfaction.
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Environmental |
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Governance |
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| Focus Area | Organization’s environmental impacts created by its activities that have actual or potential impacts on air, land, water, ecosystems, and how the organization manage those risks. | Organization’s relationships with its stakeholders, looks at how the organization treats people. | How an organization is led and managed, and what types of internal controls exist to promote transparency and accountability by leadership. |
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| Relevant Standards |
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How Can Nexus Consultancy Help
Initial Assessment and Understanding
Meet with business leaders and their team to understand their business goals, current practices, and desired ISO standards.
Identify the organization’s needs, expectations, and specific requirements.
PLAN - Customization and Planning
Develop a tailored plan based on the initial assessment to meet the organization's specific needs and objectives.
Determine the ISO implementation scope, considering departments, timeframes, and resources.
Collaborate with your team to establish an implementation schedule and timelines.
DO - Gap Analysis and System Establishment
Conduct a gap analysis of existing processes and systems to identify gaps between current state and ISO compliance.
Develop a comprehensive documentation framework aligned with ISO standards and tailored to the organization’s specific needs.
Support your team in creating or revising policies and procedures to address identified gaps.
CHECK - Training and Implementation
Collaborate with the organization’s team to implement identified changes and improvements from the gap analysis.
Provide training to raise ISO standards awareness, emphasize compliance importance, and educate employees on new processes.
Support the organization’s team in implementing effective internal audit program to monitor progress and ensure ongoing compliance.
ACT - Pre-certification and Audit Support
Conduct pre-certification audits to assess the organization’s ISO readiness.
Carry out improvements and corrective actions, where required.
Assist in selecting a reputable certification body and guide preparation for the certification audit.
Provide post-certification audit support and helping the organization demonstrate compliance.
Continual Improvement and Follow-up
Foster a culture of continual improvement by monitoring ISO implementation effectiveness.
Conduct periodic reviews and audits to identify areas for refinement and ensure ongoing ISO compliance.
Offer ongoing support for post-certification challenges and ISO certification maintenance.
Ready to take your business to new heights?
Reach out to us and let's start turning your vision into reality.
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