As businesses become increasingly aware of their impact on the environment, more are turning to ESG compliance standards. ESG stands for Environmental, Social and Governance, which are three core criteria that businesses must meet in order to be considered compliant. But what does this mean for businesses? Let’s break down how to make sure you’re meeting the requirements.
What is ESG?
ESG stands for Environmental, Social, and Governance. These three aspects are at the core of any ESG compliant business. In order to be considered compliant, a business must meet certain standards in each of these categories. The environmental aspect has to do with a company’s environmental impact, while the social aspect focuses on how a company treats its employees and customers. The governance aspect looks at how a company is managed and if it meets certain ethical standards.
How Can I Make Sure My Business Is Compliant?
The best way to ensure your business is meeting all ESG requirements is by conducting an internal audit or assessment. This will help you identify any areas that need improvement so that you can begin making changes as soon as possible. You should also consult with experts in each field in order to gain an understanding of what specific steps need to be taken in order for your business to become fully compliant.
Once you have identified areas where improvements need to be made, you can start implementing changes right away. For example, if your business has been using energy inefficiently or wasting resources unnecessarily, you can start taking steps towards becoming more energy efficient and finding ways to reduce waste. Additionally, you should consider introducing policies and procedures that promote ethical behaviour and conscious behaviour changes like tracking carbon emissions from business travel & commuting. This is where you can equip your employees with the tools like TripShift to not only drive legislation compliance, but introduce gamification and personalised recommendations to be more socially conscious of their impact too, whilst still supporting your ESG compliance strategy. If you’re in the middle of creating baselines and planning reduction strategies, let TripShift make that easy with our carbon tracking technology and leading data platform that integrates with any systems you may have in place already.
Finally, review your corporate governance structure regularly in order to ensure that it remains up-to-date with current regulations as well as industry trends and best practices. Have over 500 employees? Then you will already be reporting under TCFD regulations, but from 2025, all Scope3 Carbon emissions (including employee travel) will need to be reported to be compliant with ESG legislation too.
Becoming ESG compliant can seem like an overwhelming task but it doesn’t have to be! By conducting an internal audit or assessment and consulting with experts in the field like TripShift, you will have a better idea of what specific steps need to be taken in order for your business to reach the necessary level of compliance. Once you get started making changes—whether they be environmental initiatives or internal policies—you’ll find that becoming fully compliant with ESG standards isn’t as daunting as it may seem!