ESG - ENVIRONMENTAL. SOCIAL. GOVERNANCE
Increased focus and pressure from investors, regulators, employees, and other stakeholders make ESG a topic that is not only critical at the board level, but also essential to cascade throughout organisations operationally. However, while most companies made some level of commitment on issues such as human rights, anti-bribery and corruption and environmental protection, there is much less evidence of companies systematically implementing their commitments. ESG risk management measures often fall short of the standards that companies have set themselves.
In other words, ESG is already an extremely complex subject, especially the social aspect, which is made worse by lack of standardisation and conflicting guidelines by various organisations.
The environmental component is probably the best known component of ESG because of climate change. However, the meaning of climate change and the extent to which industry in general contribute to it is not well understood. In addition it does not stop with climate change because pollution effects every aspect of society. This can include greenhouse gas emissions, plastic pollution, hazardous waste and water pollution, just to name a few topics. Unfortunately the risks associated with environmental issues are not taken seriously enough and legislation around environmental management is well developed posing serious risks to those who do not grasp the seriousness of the liabilities they may face.
The importance of protecting the people that live on planet earth is equally as important as protecting the environment which they live in. Social issues covered by ESG include diversity, gender equality, mental health, forced labour, healthy and safe working conditions, parental leave, healthy living conditions, to name but a few. The complexities at play between human nature and the infinite number of variables present, environment they work and live in, combined with the natural volatility of human nature makes the social aspect of ESG extremely complex. Proof of the fact that although there is some appreciation of the uncertainties associated with the social aspect of ESG is the endless issues companies must deal with daily and the occasional outbreaks of work-related social unrest.
What Makes Us Different
ESGO Advisory is a black and majority black women-owned B-BBEE Level 1 contributor and is a member of the SSC Group.
ESGO provides advisory services and partners mainly, but not limited to the mining industry. The
company specialises in providing holistic implementable solutions hence the name ESGO.
Our team, drawn from in-house experts and strategic partners, has the appropriate best practice skills,
experience and current capacity to deliver quality business improvement solutions which will deliver
sustainable exponential results.
Environmental
The “E” in ESG takes into account a company’s utilisation of natural resources and the effect of the operations on the environment. Issues such as climate risks, water scarcity, extreme temperatures, disposal of hazardous materials and carbon emissions are threatening to dampen economic and company growth.
Social
The “S” in ESG considers the effect of a company’s behaviour and all factors affecting the social aspect of sustainable investing.
ESGO answers the question of “How can a company manage its relationships with its employees, suppliers and communities in which it operates taking into account the political environment?”
Working successfully with employees, suppliers and local communities requires representatives on both sides who are informed of processes, impacts and the benefits of good working partnerships.
Governance
The “G” refers to the governance factors of decisionmaking from policy making to the distribution of rights and
responsibilities among all the different participants in the company.
Governance refers to how a company operates internally and includes issues relating to the directors,
shareholders, bribery and corruption, fraud, ethics and values as well as transparency and anti-corruption.
Operational
ESGO partners with the client to improve and recuperate the underperforming areas by revitalising basic
operational functions and focusing on achieving daily goals.
This will be achieved through a structured approach and engaged workforce. ESGO guarantees to deliver
sustainable exponential results and directly addresses critical behavioural changes and supporting management systems.
HOW CAN WE ASSIST YOU?
It’s about creating a tangible, practical plan that achieves real results. Success is not about climate change, diversity, and disclosures alone. It’s about embedding these principles from investment to sustainable innovation. Bringing together your best people and smartest technology to go deeper and to act swiftly. Enabling the biggest challenges of the day to be challenged while capturing the best opportunities of tomorrow. As a result, those who invest in ESG sees tangible returns on their investment in the form of growth and sustainability.
Contact us to further discuss the topic and have a look at some ESG plans we have created and how it is presented and reported on.