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Relevance of ESG

Writer's picture: Ritvik GuptaRitvik Gupta

All you need to know about ESG...


ESG not only makes a business favorable to lenders, but it can also improve the overall financial performance of a business, ESG primarily focuses on non-financial factors, which are extremely important for analysis process to identify material risks and growth opportunities for any business.


What is ESG

  • E- Environment: The impact of business on environment right from the sourcing of raw material to the end delivery of the final product.

  • S- Social: The work environment in the company. Focuses on Employees working conditions

  • G- Governance: Diversity and equality in Senior management like investors in the company.

Relevance of ESG

The European Union and the US government have gradually started acting upon it, where businesses are required to function in compliance with ESG, if not heavy taxes and other forms of regulation are being imposed upon.




Why is ESG important


With the increase in global climate catastrophes, ESG is not just a life saver but also a profitable efficient framework if used correctly and smartly.

Before its acted upon from the government, and regulations are imposed in other countries as well you as suppliers, retailers, importers, wholesalers can be one step ahead and prepare for the future.

Startups, or businesses seeking for funding can use ESG framework to even get the right investors on board.


How could you calculate


Calculating ESG is difficult but not impossible. Two most recognized framework to calculate your business ESG report are GRI (Global Reporting Initiative) and SASB (Sustainability Accounting Standards Board)


Stay connected with us to know, how we are implementing ESG strategies across our manufacturing lines.

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