New challenges for business. ESG strategy in the enterprise
By BluExperience | May 12, 2024 | ESG
New challenges for business. ESG strategy in the enterprise
The environment in which modern companies operate is becoming increasingly complex. This necessitates constant change and adaptation to current market, technological and economic conditions. In the face of social and environmental challenges, now more than ever a responsible approach to business is becoming particularly important. In this context, the concept of ESG occupies an important place on the list of priorities of companies. This strategy makes it possible in the long term to plan the company’s development with respect for the environment and the community.
ESG strategy – what is it?
In general, the idea of ESG means paying special attention to the environment, society and corporate governance. “ESG” is an acronym for the English words Environmental, Social and Governance. The approach takes a holistic view of a company’s operations, considering not only the financial aspects, but also the impact the company has on its environment. The goal of the organization should be to strike a balance between generating profits and minimizing the risks associated with the aforementioned areas.
ESG strategy in a company – what should it include?
We can see ESG strategy as a modern way of business development, which means planning the company’s development based on environmental, social and corporate governance issues. They are the three pillars of the fight against the challenges of today’s civilization: climate change, social inequality and environmental poisoning. From segregating garbage, reducing energy and water consumption or promoting the use of greener forms of transportation, to eliminating gender discrimination and ensuring work life balance, to a board structure that is transparent and adequate to the scale of the business, respecting shareholders’ rights or preventing corruption, the company strives to achieve harmony between generating profits and creating a positive impact on the environment.
A company’s ESG strategy should consider three areas of action focusing on:
- environment (environmental) – this refers to any activities aimed at reducing the impact on the environment and protecting its resources; this can include, for example, reducing the amount of waste generated by the company, promoting recycling or investing in green technologies such as electromobility,
- Social responsibility (social) – these include protecting human rights, preventing discrimination and practices that violate human dignity, and ensuring the comfort and safety of local residents,
- corporate governance – include transparency of operations based on the application of moral standards and ethical principles, the elimination of corruption and an honest approach to taxation, which contributes to building an atmosphere of trust and stability in the organization.
As part of the ESG strategy, it is important to regularly monitor performance and run regular reports to track progress toward these goals.
Who should implement an ESG strategy?
More and more companies around the world are choosing to implement ESG strategies with a focus on accountability and transparency. Currently, companies are not formally required to provide non-financial reports with recommended ESG indicators, but this is expected to change soon. Nevertheless, some companies have already been publishing such reports for years, seeing great potential in them.
It’s worth knowing that starting in 2025, all large companies and companies listed on European Union markets that have at least 500 employees and a balance sheet total exceeding PLN 85 million or annual revenues exceeding PLN 170 million will be obliged to prepare an ESG report. This means that the first such report will be due as early as 2024.
Why should your company start taking an interest in ESG strategy?
ESG strategy is a set of modern standards in business. A company that emphasizes ESG criteria becomes much more credible in the eyes of investors and stakeholders. By paying attention to areas that are becoming increasingly important in today’s world, a company that operates in accordance with ESG principles can gain a greater reputation in the market and a reputation as a better business partner.
It is worth noting that the effective development and implementation of an appropriate ESG strategy can contribute to increasing the value of a company and making it more competitive in the long term. An organization that respects the fact that building an ESG strategy and implementing plans to achieve its goals is not only a necessity, but also a valuable tool for generating business value, may enjoy better access to capital, which can enable faster growth and expansion into new markets. As a result, a company can stay ahead of the competition and gain numerous customers.
Our Agency will allow you to use the potential of the idea of socially responsible business. This is what partners and clients expect, so why not show it during shows, lectures, conferences, trade fairs or employee events organized for them? Socially responsible events are our specialty. Respect for the environment, consideration of social issues, corporate governance – for us these are not just empty slogans. We implement CSR/ESG practices within the agency and are able to use the events we organize to show that you do too. We focus on building trust, truthfulness of communication, sincerity, and these are among the prerequisites for actually acting in accordance with the idea of corporate social responsibility.