Introduction
Business sustainability, or corporate sustainability, is a broad concept encompassing a company's efforts to balance its environmental, social, and economic impacts. Companies that improve sustainability and ESG achieve better growth and profitability than their peers, outgrowing them, and exceeding them in shareholder returns.
“Triple outperformers” delivered 7% more Total Shareholder Revenue (TSR) points above the rest of the dataset, suggesting that a strong ESG commitment adds additional shareholder value for companies that exceed their peers in growth and profitability. Triple outperformers are more than twice as likely to grow revenues by more than 10%. As evident, ESG contributes to the enhancement of the CAGR aspect.
However, there are challenges in implementing ESG regarding documentation, data recording, and management, as well as complexity in ESG prioritization, evaluation, and multiple reporting frameworks to navigate the various regulations to reduce emissions and financial risks. This challenge calls for an integrated, modern solution to enhance performance.
Sustainability Frameworks: GRI, CDP, TCFD
Classic yet powerful for sustainability disclosure; these three frameworks are used across various sectors and demonstrably help companies gain trust from customers and business partners. Our proposal identifies that the current GRI reporting utilizes the "GRI Reference" level. With our assistance, the reporting can take a significant leap by incorporating a more detailed assessment to meet the "In Accordance" standard. Understandably, companies new to sustainability reporting might find "GRI Reference" a good starting point. However, stakeholders may prefer or even require "In Accordance" reporting for increased transparency and assurance.
Additionally, implementing a framework like the Carbon Disclosure Project (CDP) could further strengthen the company's profile on biodiversity and good governance, particularly for sound supply chain disclosure. Ailesh can assist you with this process from the initial stages of implementation to reporting or discussing how other sustainability frameworks suit your business goals best, such as Green Port and TCFD. In addition, a sustainable product-based approach to reporting, such as Environmental Product Declaration (EPD), Life Cycle Assessment (LCA), or Product Environmental Footprint (PEF), can be a great addition to the sustainability strategy.
Bettering Communication and Data Management ESG Strategy
Implementing roadmaps, matrices, and blueprints could significantly ease the ESG communication that is unique and professionally catered to the company’s value. By integrating biodiversity, social development programs, and better governance efforts, Ailesh could:
Re-identification risk areas for the business and industry,
Collecting basic qualitative and quantitative data,
Organizing workshop for professional leadership in implementing strategic frameworks,
Updating Materiality Assessment and Risk Assessment or Sustainability Map (2020)
Strategizing ESG Blueprint and Net Zero Roadmaps,
Assisting in upgrading the GRI report and CDP implementation,
Guide the team to achieving ESG score to be presented in IDX ESG Ratings, and strategizing score increase based on ESG rating platforms such as Sustainalytics, MSCI, etc.
Updating biodiversity baseline reports or social innovation reports,
Documenting current corporate initiatives alignment to SDGs target.
List of Assessment
No | Aspect | Category | Description |
1 | Environmental | Energy Consumption | Track and monitor energy consumption data across different facilities. |
2 | Environmental | Greenhouse Gas Emissions | Generate reports on greenhouse gas emissions data aligned with relevant frameworks. |
3 | Environmental | Water Usage Efficiency | Analyse water usage data to identify areas for improvement and set reduction targets. |
4 | Environmental | Waste Management | Track waste generation data by type and disposal methods. |
5 | Environmental | Non-GHG Air Emissions Programmes | Identification of relevant non-GHG air emissions, Targets to reduce non-GHG air emissions, Non-GHG air emission monitoring |
6 | Social | Employee Diversity & Inclusion | Track employee demographics and monitor progress toward diversity and inclusion goals. |
7 | Social | Labor Practices | Generate reports on labor practices, including working conditions, wages, and employee satisfaction. |
8 | Social | Diversity & Inclusion Report | Generate reports on diversity metrics within the workforce and leadership. |
9 | Social | Human Rights Policy & Programme | Commitment to adopt programs to address industry-specific human rights exposure, Commitment to monitor and report on human rights impacts, Commitment to provide a remedy to correct negative impacts, Incident investigation, including grievance mechanisms, Monitoring of human rights performance, etc |
10 | Social | Skills Gap Analysis | Identify skills gaps in the workforce and develop training programs to address them. |
11 | Governance | Board Composition | Monitor board composition for diversity, independence, and expertise. |
12 | Social | CSR funding/community development | Create Report CSR funding (money spending, for what, when, where, with whom, how) |
13 | Environmental | Chemistry management | Create Report Chemistry consumption and management handling |
14 | Occupational H&S | Health and Safety Management System | Emergency preparedness procedures, Formal health and safety policy commitment, Managerial responsibility for health and safety issues, Operating guidelines or procedures that are relevant for the industry, Performance monitoring and measurement, Procedures for hazard identification and risk assessment, Targets to reduce health and safety incidents, etc |
15 | Occupational H&S | Health and Safety Certifications | Percentage of the company's facilities that have received external certification |
16 | Occupational H&S | LTIR Trend | Where is the company's LTIR relative to the industry median and what is its trend |
17 | Occupational H&S | Employee Fatality Rate | Where is the company's Employee Fatality Rate relative to the industry median and what is its trend |
18 | Business Ethics | Bribery and Corruption Policy | Definition and prohibition of facilitation payments, Definition of bribery or corruption, Definition of conflicts of interest and commitment to minimize these, Prohibition of bribery, etc. |
19 | Business Ethics | Whistleblower Programmes | An independent, reporting hotline available 24/7, in local languages, to suppliers, customers and other third parties, etc. |
20 | Business Ethics | Political Involvement Policy | Approved by senior management, Commits the company to disclose political donations or lobbying expenditures, Prohibits political involvement of any kind on the company’s behalf, etc. |
21 | Business Ethics | Lobbying and Political Expenses | Does the company make political contributions or is it involved in lobbying activities? |
ESG Disclosure and Report
All the data can be compiled in one system that can be disclosed and accessed through public information. Ailesh also provides an ESG dashboard to track, monitor, and visualize the ESG performance indicators, making all the information available on one platform to ease the evaluation and enhance corporate ESG initiatives.
Request our ESG Platform demo, discuss your target, and get a free consultation from our expert.
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