The term ESG is gaining more and more prominence in the market and is becoming an essential practice for companies seeking to remain competitive. But what is ESG and how can you apply it in your company? In this article, we’ll give you some important tips so that you can start putting each term in the ESG acronym into practice and contribute to a more sustainable world.
Before we give you some tips on how to apply ESG in your company, it’s important to remember what these letters stand for. ESG stands for Environmental, Social and Governance. These three aspects make up a set of criteria used to assess the sustainability and responsibility of companies.
Implementing sustainable ESG (Environmental, Social and Governance) actions makes companies stand out in the market and achieve positive results.
Understand what ESG is and learn how to implement sustainable practices and initiatives in your company.
Industries have made significant investments in ESG actions and the market has included these practices as an important factor when allocating resources and investments. According to the Global Sustainable Investment Alliance (GSIA), in 2020, the total global assets managed based on ESG criteria exceeded US$ 40 trillion.
Applying ESG in the company also contributes to the Sustainable Development Goals (SDGs), a series of targets for a more sustainable world set by the UN in 2015. And now, not only investors, but also partners and consumers are also becoming aware and want to consume products and services from companies that recognize the importance of and apply sustainable practices.
Now that we’ve understood the importance of ESG, it’s time to present some practical tips on how to apply ESG in your company. Below are some suggestions for each term in the ESG acronym:
Adopt measures to reduce energy consumption in your company, such as replacing light bulbs with more efficient models and installing equipment that takes advantage of natural light, such as skylights.
Implement an efficient waste management system, including the separation and correct disposal of recyclable materials and organic waste.
Adopt measures to reduce water consumption, such as installing water-saving taps and shower heads, recirculating water in cooling systems and collecting rainwater.
Investing in renewable energy sources, such as solar or wind power, can be an interesting alternative for reducing the emission of polluting gases into the atmosphere and cutting electricity costs in the long term.
The carbon footprint is the amount of greenhouse gases emitted by the company. Measures such as reducing the use of fossil fuels and encouraging the use of sustainable transport, such as bicycles, can help to reduce the carbon footprint.
Look for environmental certifications, such as ISO 14001, which certify that the company is committed to environmental management and reducing environmental impacts.
Promote diversity and inclusion in your company by adopting hiring policies that take into account aspects such as gender, race and sexual orientation.
Provide a comfortable and pleasant environment to work in, with policies and actions aimed at increasing not only safety at work, but also the health and well-being of employees.
Develop actions that benefit the community in which the company operates, such as donations to charities and volunteer campaigns.
By choosing to buy local products, the company contributes to the economic development of the community and to the reduction of greenhouse gas emissions generated by the transportation of goods.
Encourage employees to get involved in volunteer activities, allowing them to exercise their citizenship and creating a culture of collaboration in the company.
Develop education projects aimed at the community, such as lectures or workshops on topics that are relevant to the local population, such as health, the environment or citizenship.
Adopt transparency practices in company management, such as disclosing financial reports and sharing relevant information with stakeholders.
Adopt ethical business practices, such as not using child or slave labor and not engaging in corrupt practices.
Create an ethics committee to guarantee the application of ethical practices in the company and ensure that the company’s values and principles are followed.
Adopt measures to improve the company’s capacity to manage conflicts of interest, such as implementing clear and transparent policies to avoid mistakes and minimize errors in the execution of processes.
Adopt a fair and transparent remuneration policy for employees, taking into account aspects such as performance, skills and the market.
Implement measures to ensure that the company complies with laws, regulations and standards, avoiding possible penalties or sanctions.
Have an efficient and diverse board of directors, capable of making strategic decisions for the company and ensuring its long-term sustainability.
Constantly monitor the risks to which the company is exposed, in relation to environmental, social and governance issues, adopting preventive and corrective measures.
Now it’s up to you: analyze your company and find opportunities to put into practice the tips we’ve listed in this article. Increasingly important for business sustainability and competitiveness, ESG will add value to your business, as well as attracting and retaining customers. All this while helping the environment and acting with social responsibility and governance.
Download our complementary ebook“Sustainable Company Guide” and start applying sustainable practices in your company right now.
