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ESG: Paving the Way for Greener Tomorrow

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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