ESG - Where to start
Why is this one of the most important areas for your Business to adopt as part of its core principles? ESG affects all companies as all companies are suppliers to larger companies that require supply chain oversight. This should not only be viewed as a risk, but more importantly, this is an opportunity. It can be daunting, and you may, as Business Owner, Director, CEO or CFO, think I have enough on my plate just running my business and ask – Why do I need this headache?
Why do I need this extra expense a layer of reporting and governance? I propose the opposite – this is a business opportunity. Firstly, if you are an SME- then your large Customer will insist that you are meeting the standards- by treating your staff, you can increase productivity; by treating your customers better, you can increase sales by putting in proper Governance and oversight that focuses on both risks and opportunities – you can increase value for all stakeholders. Yes – the task is daunting -and you rightly ask, where can I start?
You can go to the big accountancy or large consultancy firms and get an expensive quote, hire a Head of ESG, or ask your CFO to start the process. You can read some of my blogs, subscribe to our substack weekly digest., or be in contact with us,
No one has all the answers or a view of your business or industry, so there is a learning process, but various steps apply to all businesses. One clear thing is that there is a sense of purpose by Government, Businesses, and Individuals to be on the same page. Many Businesses have voluntarily adopted ESG principles based on UN SDG or forced by investors, coerced by staff or customers, and now by legislation. This process has started and will be the most significant change to how Financial Statements are going to be prepared and reported. Here I wear my accountant hat. We can go back to the 1930s when Accounting Standards started; until today, not much has changed. Now — Companies are going to be required by law to calculate the cost of the business to the environment and provide for liabilities. So, no longer can big mining and petrol companies get away with exploiting the world's natural resources — Big brother is watching.
The ship has sailed. As a business owner, you run the risk of drowning if you fail to get on the ESG ship.
Where to start - 5 key areas?
IDENTIFY YOUR INDUSTRY
See what comparative companies are doing
Draw up an outline of major focus areas for business based on the industry
Draw up Targets / Strategies.
Board and Management sign off.
Implement required Protocols through the use of 3rd party providers
CFO to lead
Data Collection Data Extraction Data Reporting
with 3rd party software
Implement changes to reduce environmental damage and improve Social & Governance
Integrated Financial Report
ESG - Why all the fuss?
This is a must-read for every businessman, CEO, CFO, and Director. In this blog, we cut to the chase and heart of the problem and provide practical steps to start, re-start or improve your ESG journey
Can ESG make the world a better place?
ESG is a new Business Regime. It says no longer will businesses be measured by profit alone, but by profit + Impact. Yes – ESG in the current setup is flawed. This article looks at what we practically do to upgrade ESG into Impact.