Top 3 metrics for ESG reporting in energy sector
This year has already established itself as the one for ESG initiatives as companies everywhere evaluate how to incorporate sustainability into their business models. What many fail to realise is the transparency and accountability needed to do it correctly.
With heightened intensity around Net Zero, many business leaders are focused on reducing carbon emissions and other environmental impacts, but to really implement ESG properly is to look beyond simple measures of “greenness”, by including critical Social and Governance components, such as ethical labour relations, health and safety policies and overall corporate social responsibility.
As companies continue to adopt more sustainable standards, it is imperative they include these parameters in order to comprehensively demonstrate the impact of their organisation.
Ethical Labour Relations
The first step is evaluating internal structures with a view towards diversity, equity and inclusion at all levels of the organisation and then identifying steps in pursuit of a more balanced workforce across age, gender, and ethnicity. It has been proven that having a broad range of perspectives helps organisations innovate more frequently and solve complex issues as they arise. Next is to consider training and enrichment programs as tools to help inspire and empower your staff.
Health and Safety Policies
Historically, health and safety policies focused on preventing physical workplace injuries, but now more companies are being tasked with assessing the mental health of their employees and being held accountable for the level of support/resources they provide. For C-suite and HR leaders who want to invest in their company’s resiliency, they must first invest in their company’s health, by regularly assessing their employees’ work life balance and providing actionable steps for those in need of additional resources.
Corporate Social Responsibility
Stakeholders and regulators are demanding proof from companies and their boards that ethical governance practices are in place. A company that is putting ESG at the forefront will dedicate board and executive resources in the form of committees to review these initiatives on an ongoing basis, develop policies and publicly disclose progress in external reporting.
Having leadership that is committed to developing and monitoring progress regarding ESG strategies ensures a company isn't just providing lip-service but is actively working to improve business conduct on all levels.
ESG is the foundation of a company’s long-term value and resiliency. Without a comprehensive approach to ESG reporting, one cannot have a full picture of potential business risks and opportunities for growth.