What is ESG (and why does your business need it!)?

What is ESG (and why does your business need it!)?

, by Maeve Reidy, 2 min reading time

All businesses love short and snappy acronyms. And these days ESG is an important consideration for all businesses ... but what exactly is ESG?

In recent years, the term ‘ESG’ has become quite the buzzword, especially in the world of business. But what does it actually mean?

ESG stands for Environmental, Social Governance and is a set of criteria used to evaluate how a company impacts both society and the environment!

In this blog we hope to remove all the jargon to shed light on what ESG actually means, and how important it really is!

E: Environmental Factors

You may be unsurprised to learn that the "E" in ESG stands for Environment. This looks at how a company reduces their environmental impact and looks for areas of improvement. Key areas include:

  • Carbon emissions and climate change
  • Renewable energy adoption
  • Water and waste management
  • Biodiversity protection
  • Pollution control and waste reduction

S: Social Factors

The "S" in ESG represents social criteria, which is basically how a company interacts with its employees, customers, communities, and other stakeholders. Social factors encompass:

  • Employee welfare and fair labour practices (important in the manufacturing industry!)
  • Diversity, equity, and inclusion initiatives
  • Customer satisfaction and data privacy protection
  • Community engagement and support
  • Supply chain ethics and responsible sourcing

G: Governance Factors

The "G" in ESG stands for governance. In simple terms, this focuses on how the business is run and what influences decision making! Key governance aspects include:

  • Transparent management of the business, i.e. no shady business!
  • Ethical business practices and anti-corruption measures (we're talking absolutely no bribery!)
  • Board members who don’t have a financial interest in the company (and therefore can give unbiased advice!)

By embracing ESG, businesses can build a better brand image by showing they have got nothing to hide! Today, ESG is such an important part of any business: By proactively addressing environmental, social, and governance factors, businesses can attract more customers whilst enhancing their brand reputation and demonstrating their commitment to a more equitable world!

As you can see, there are many industries and processes that can determine a company's ESG Rating. The range of eco-friendly packaging solutions and sustainable sugarcane washroom supplies available from ShredPack means that we have many customers who either follow ESG Practices or would like to.

Why not contact ShredPack to find out how we can help your ESG Factors with our eco-friendly packaging and washroom supplies?!

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