In 2015 the United Nations created an agenda for sustainable development including ESG Initiatives. It was adopted by all of the member states and for the past decade members have been working towards a more sustainable world. ESG initiatives are a big part of Sustainable Development.
In fact, the has been a big push toward sustainability in both the private and public sectors in the United States. The Inflation Reduction Act was created to encourage American companies to adapt greener climate policies through the Climate Pollution Reduction Grants (CPRG) geared towards reducing greenhouse gas emissions.
Today, many companies want to improve their business footprint with ESG Initiatives, but they are not always equipped with how. In this blog, Engage Energy & Industrial Consulting will help you establish some basic principles for conceptualizing a new ESG Initiative.
What Should Come First with a New ESG Initiative?
After establishing a baseline for your ESG Initiatives, the next step is to establish objectives and goals. Companies that set clear goals for their programs are more likely to hit milestones. These targets are tailored to bridge the gaps identified in the baseline assessment and to capitalize on existing strengths. No business is the same, thus, establishing a baseline for your businesses unique footprint is vital to long term goals of a ESG Initiative.
What Objectives Makes Sense for your Business?
Business objectives are shaped by the insights gained from the current ESG state. They should be ambitious yet achievable, steering the company towards impactful change. These objectives typically span across various facets of ESG such as reducing carbon footprint, improving employee well-being, and enhancing corporate governance structures. You can find a sample ESG & Natural Gas Sustainability Initiative from the American Gas Association on the EPA Website HERE.
Sample ESG Objectives:
- Reducing greenhouse gas emissions
- The conservation of natural resources
- Managing waste
- Improving recycling programs
- Increasing social involvement in the community
- Reducing carbon footprints
How Do You Ensure Your ESG Initiatives are Implemented?
Establishing governance is to ensure that ESG Initiatives are implemented. Governance is responsible for enforcing decisions within an organization and controlling the direction of the policies established in your ESG Initiatives.
“Good governance relates to the political and institutional processes and outcomes that are necessary to achieve the goals of development. The true test of ‘good’ governance is the degree to which it delivers on the promise of human rights: civil, cultural, economic, political and social rights.”
United Nations
The next question you should be: Who is going to measure results? How do you determine progress towards your goals? How are you holding everyone accountable for achieving your goals. The answer is the governance and compliance team. That team will need transparency and accountability across your business practices. Then, establish a compliance committee internally to regularly check your progress. Schedule audits to ensure adherence to the standards set forth in your ESG Initiatives.
What Can Engage Energy & Industrial Consulting Do for You?
Today, establishing ESG objectives must take into consideration your unique business footprint. No business is the same. Engage Energy & Industrial Consulting is here to help establish your ESG Initiatives from conception, execution, and tracking. Our team has dedicated decades of their careers to helping businesses like yours move into the next phase through sustainable and environmentally responsible business practices. Together we can establish clear, strategic goals, for your business. Leveraging the opportunities for a greener future for our planet. Together we can navigate the ESG landscape with purpose and direction, leading to sustained improvements and positive impacts. Contact Us HERE.
