All about ESG – what it is, who it affects and how it affects company management

By BluExperience | May 12, 2024 | ESG

All about ESG – what it is, who it affects and how it affects company management

In the 21st century, companies face many challenges. In the context of global trends and growing environmental awareness, the ESG issue is becoming a key element of business strategy, which has a direct bearing on the organization of corporate events. In today’s article we will take a closer look at what ESG is and how it affects company management.

What is ESG? Definition of

ESG is an acronym for Environment, Social responsibility and Governance. The term stands for the three main areas that companies, organizations and investors should pay attention to in order to act in accordance with the principles of sustainable development and conduct business in a responsible manner, respecting the broader interests of individual stakeholders. The ESG concept is not entirely new. It is an extension of CRS, or Corporate Social Responsibility, activities.

Is it worth implementing an ESG strategy in a company?

More and more companies are recognizing the benefits of ESG reporting. It is not only a necessity for change at the legal level, but also a key to sustainable developmentthat enables survival in a competitive market. Adapting to the new rules requires investors to broaden their view of the business, taking into account not only traditional financial metrics, but also a range of parameters assessed in terms of environmental impact.

ESG policies focus on monitoring impacts on nature, promoting ethical business practices and ensuring effective climate risk management. By paying close attention to the environment, corporate governance and social responsibility, companies are responding to today’s challenges by providing quality products and services with sustainability in mind. By implementing ESG principles, companies can better understand the needs of their customers, leading to better relationships.

Sustainability and ESG – what is it and what does it mean in practice?

When trying to explain what ESG is, it is best to use examples. Companies that want to be perceived as socially responsible and caring for nature should develop a formal ESG policy, establish appropriate procedures, and then consistently implement them. A strategy aimed at meeting the demands of sustainable development can include, for example, the following areas:

• greenhouse gas emissions,
• carbon footprint,
• Energy consumption – especially from non-renewable sources,
• hazardous waste,
• Water management – emissions to water.

The second element of ESG strategy is social issues. Companies that want to invest in sustainable practices should bet on:

• supporting diversity,
• Equalizing opportunities for women and men,
• Striving for a work-life balance,
• Compliance with labor rights,
• Implementing solutions to ensure the security of employees’ personal data.

Last, the third pillar of ESG is corporate governance. Within this area, a company should focus on issues such as:

• fiscal transparency,
• Activities to prevent corruption, bribery and all forms of extortion,
• board structure,
• Management and key employee compensation,
• Respect for shareholders’ rights.

ESG policy – how does it affect company management and performance?

A comprehensive sustainability strategy is now having an increasing impact on the company image, which can be effectively shaped at events. Companies that strive to make decisions with environmental and social impact in mind build a positive image in the eyes of employees and gain the trust of stakeholders. Consequently, this translates into increased work efficiency and improved performance.

And we will help with that. The workshops and conferences are, after all, an excellent opportunity to inform your stakeholders about your CSR/ESG activities – be they your employees, business partners, customers or the media. Use this opportunity to build the image of a socially responsible business. Remember that our events are organized with the idea of sustainable development in mindwhich makes your message even more authentic.