Updated: Apr 18
Why is this one of the most important areas for your Business to adopt as part of its core principles. This article will explore some of the ramifications, trends, and needs resulting from the recent announcements.
ESG affects all Companies as all companies are suppliers to larger companies who 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, 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 oppositive – 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 a proper Governance ad 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 firms, and large consultancy firms and get an expensive quote, and you can hire a Head of ESG, or ask your CFO to start the process.
You can read this article where I give practical tips. No one has all the answers or a view of your business or industry, so there is a learning process, but there are various steps that are applicable to all businesses.
One thing that is clear is there is sense of purpose by Government, Businesses, and the Individual to be on the same page. Many Businesses have voluntarily adopted ESG principles which are 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 biggest change to the way Financial Statements are going be prepared and reported. Here I wear my accountant hat. We can go back to the 1930s when Accounting Standards started and 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 the exploitation of the world's natural resources — Big brother is watching. The ship has sailed. If you as a business owner fail to get on the ESG ship, then you run the risk of drowning.
These issues are further explored in a book called “Accountants can save the Planet” by Professor Mervyn King who together with Sir Ronald Cohen are leading the fight for greater transparency and accounting by companies for Impact / ESG. Sir Ronald Cohen is based in Israel has brought out a few books one of which is called “IMPACT: Reshaping Capitalism to Drive Real Change”.
ESG3.0 provides an opportunity for your company to upgrade your ESG story.
1. ESG support for CFOs and Directors
2. Provision on Non-Executive ESG Director service
3. ESG3.0 - Digital ESG Tool Kit
ESG3.0 is a breakthrough approach to ESG that incorporates a digital data-driven approach to data collection, management, reporting, and Energy Reduction. The approach is both a Digital and Consultancy offering for companies providing a holistic next generation, strategy, data-driven, tech-based ESG solution, with a lower cost and more practical than the larger consulting firms. It is provided together with GCX have decades of subject matter experience – resulting in ESG Accounting, ESG Measurement, ESG reporting, and improved accuracy and transparency of your company's ESG rating.
We invite you to find out how we can help you in your sustainability journey.
ESG Accounting | Carbon Accounting | ESG Measurement | ESG Rating | Net Zero | CO2 Reduction | ESG Reporting Emission I Supply Chain/ Investment Portfolio