ESG accounting is associated with business process instead of profit or loss. It stands for Environment, Social, and Governance. These are important factors as they decide whether your business is doing any good for the planet, society, and government.

What can you do for environment?

As you know that environment is getting polluted day by day and it can be reduced only with collective efforts of the business community. If you are using green technology; you have reduced your energy usage, and you have tweaked your business process to make it environment-friendly, you are doing well on the environment factor.

What can you do for society?

As a business, you generate employment and provide growth opportunities to the workforce of your country. But you need to provide the right work environment to your employees. They should get proper resting time, holidays, sick leaves, and financial help during tough times. Also, they should get equal growth opportunities. If you are taking care of your workforce, you will score high on ESG measurement.

What can you do for your government?

As a business, you contribute to the economic development of your country. You make profit and give taxes. You should pay your taxes on time and clear all your dues without attracting any penalty. The taxes you pay are used for carrying out development work in the country. If your accounts books are updated and transparent, your rating will be high.

ESG accounting decides whether you will get investment, especially international investment. Avid investors including governments have decided to investment in companies that are doing well for environment, society, and the country. In other words, they want to promote the businesses that care for the planet, their employees, and development of their countries.

How to improve your ratings?

First, you should do a detailed audit of your business process to know whether you are harming environment. In audit, you will check your energy consumption, and impact of your business on the planet. Also, you need to make your employment rules to favor your employees. Finally, you need to keep your accounts books right and ready for auditing.

It is better to hire a professional for ESG measurement of your business. The professional will keep an eye over the performance of your company and suggest measures to improve the performance. Soon your ratings will improve and you will become a hot favorite of investors.

Call for Directors ESG strategy and oversight

Despite the increased ESG focus, many Directors indicated that boards often lack the necessary tools for effective ESG oversight.

This clearly highlights the urgent need for:

  • ESG Director training
  • Aligning company strategy with ESG
  • ESG Accounting and Reporting
  • Improving Governance – Board Risk and Opportunity Assessments.
  • Adding non-executive directors who can contribute on ESG
  • Specialized new ESG roles – director or head of ESG

ESG represents a substantial shift in the way companies and boards will operate their businesses. This is further reflected by Moody’s expanding of ESG integration into credit scores and this will affect positively or negatively on the company’s abilities to keep or gain new customers.

Companies and boards will need to take urgent action in this new ESG world.

About us

ESG3.0 provides an opportunity for your company to upgrade your ESG story.

Our Services:

1. ESG support for CFOs and Directors

2. Provision on Non-Executive ESG Director service

3. ESG3.0 – Digital ESG Tool Kit

ESG3.0 is a breakthrough approach to ESG that incorporates a digital data-driven approach of data collection, management, reporting, and energy reduction. The approach is both a Digital and Consultancy offering for companies providing a holistic next generation, strategy, data-driven, tech-based ESG solution, with a lower cost and more practical than the larger consulting firms. It is provided together with GCX have decades of subject matter experience – resulting in ESG Accounting, ESG Measurement, ESG reporting, and improved accuracy and transparency of your company’s ESG rating.

We invite you to find out how we can help you in your sustainability journey.

Please feel free to reach out to me by email: [email protected]

or browse my blogs on https://www.persofi.com/

where we cover topics with a focus on:

ESG Accounting | Carbon Accounting | ESG Measurement | ESG Rating | Net Zero | CO2 Reduction | ESG Reporting | Supply Chain/ Investment Portfolio