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Greening your business: 5 tips to master Environment, Social, and Governance in the EU

BlogGlobal • Jun 26, 2024 5:08:44 PM • Written by: Georgia Reynolds

The conversation around Environment, Social, and Governance (ESG) measures and the broader "green" agenda continues to be crucial for many businesses in the UK, EU, and beyond. ESG criteria help evaluate how companies perform in terms of environmental impact, social responsibility, and corporate governance. Embracing ESG is essential as it aligns with global efforts to tackle issues like climate change, inequality, and corporate accountability. In this blog, we are going to discuss the importance of ESG, practical steps for integrating ESG principles into business operations and how to navigate the implications of the EU Green Deal.

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What is ESG?

ESG stands for Environment, Social, and Governance. It is a framework used to evaluate a company's performance and impact in three key areas:

Environment: This aspect focuses on a company's environmental impact and sustainability practices. It includes factors such as energy use, waste management, pollution, natural resource conservation, and efforts to combat climate change.

Social: This dimension assesses how a company manages relationships with employees, suppliers, customers, and communities. Key factors include labour practices, human rights, health and safety, diversity and inclusion, and community engagement.

Governance: This area examines a company's leadership, executive pay, audits, internal controls, and shareholder rights. It includes the transparency and accountability of a company’s management, as well as ethical behaviour and compliance with laws and regulations.

Why ESG is important?

Focusing on ESG is not just about following the rules; it's about preparing your business for the future and staying competitive. By adopting ESG principles, your business can innovate, attract top talent, and stand out in the market. As clients increasingly demand transparency and accountability, showing a strong commitment to ESG can boost your business's credibility and appeal to potential clients and partners.

Practical tips to get started with ESG

Here are some tips for those just beginning their ESG journey:

  • Survey your workers: Start by understanding your current ESG performance. Conduct surveys to gather input from employees about existing practices and potential areas for improvement. This helps identify immediate actions and builds a foundation for future initiatives.
  • Set clear goals: Define clear, achievable ESG goals based on your survey results and industry standards. This might include reducing energy consumption and improving diversity and inclusion.
  • Assign responsibilities: Designate specific roles and responsibilities for ESG initiatives across different departments. This ensures that ESG becomes a part of your business-as-usual (BAU) operations and not just a side project.
  • Develop an ESG policy: Create a comprehensive ESG policy that outlines your commitment, goals, and strategies. This policy should be communicated to all stakeholders, including employees, suppliers, and customers.
  • Monitor and report: Establish a system for tracking progress and reporting on ESG metrics. Regular monitoring helps keep your initiatives on track, while transparent reporting builds trust with stakeholders.

EU Green Deal

A few years ago, companies were still trying to understand ESG. Now, the focus is on how to comply with the global standards. For businesses, especially those operating in the EU, it's vital to anticipate regulatory changes linked to initiatives like the EU Green Deal.

The EU Green Deal is a comprehensive plan initiated by the European Union aimed at making Europe the first climate-neutral continent by 2050. This ambitious agenda involves a series of policy initiatives designed to tackle climate change and environmental degradation, transforming the EU into a modern, resource-efficient, and competitive economy.

Giant Group is committed to sustainability and passionate about protecting our planet. Besides having held the ISO 14001 environmental management certification for many years, we believe that there is no better time to focus on ESG strategy to drive improvements within our business, our employees and communities.. Through our green initiatives, we continuously strive to minimise our environmental impact and contribute to a more sustainable future.

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Georgia Reynolds

Marketing Coordinator – Content