What is ESG and why is it important to measure? Everybody is talking about ESG, Environmental, Social, and Governance, but what does it really mean? ESG refers to a set of standards for a company's operations to evaluate its performance. ESG criteria consider a company's impact on the environment, its treatment of workers and the community, and the way it is governed. More and more investors have begun to incorporate ESG considerations into their investment decisions. As a result, companies that score well on ESG criteria may be more attractive to investors and may have better access to capital. There are several ways to measure a company's ESG performance. Some of these include: Self-reporting: Many companies publish ESG reports that outline their policies and practices in these areas Third-party ratings: There are a number of organizations that specialize in evaluating and rating companies based on their ESG performance ESG indices: Some financial indices are designed to track the performance of companies that have strong ESG profiles The taxonomy regulation: This is a classification system, establishing a list of environmentally sustainable economic activities Is your company working with ESG? #interimmanagement #esg #csr
Pasi Koskela
1y
Yes! Among several activites, at the moment we are preparing the Sustainability Report FY2022, including SASB reporting and of course have started to look into the compliance preparation for coming European sustainability reporting regulation with related ESRSs.
Country Manager at Xledger Suomi | Using tech to transform businesses, drive change and make the world a better place.
1yYes, we're working on including ESG reporting in our core reporting functionality in our ERP/finance system. We think this will cater for most needs, compared to dedicated best-of-breed systems, which probably will be for the few (who can afford the time and cost).