The ESG rating could be new to you, but it isn’t a new concept to the world of business. Your business should perform well on three factors – Environment, Social, and Governance. Even all businesses should score high on these three factors. 

Let’s understand the importance of these factors in detail 

Environment 

As you know commercial activities all over the world are degrading the environment. Air pollution is at an all time high, rivers have become dirty, and groundwater is depleting at a fast pace. Governments of the world want to save the environment and they have decided to support the industries and businesses that use environment-friendly technologies. If you aren’t using green technology, you won’t get government support. 

Social 

Another important factor in ESG accounting is Social that stands for society. Here you can argue that how could your small business help the society. Or you can say that your role is limited to a profit-making company and you have nothing to do with the rules of society. As a business your role is to provide equal work and growth opportunities to your employees. 

Governance 

As a business, you make profit. But it is a joint effort of you, your employees, technology, and the government. And you should know that everyone should get a share of his contribution in your growth and development. The first thing is to keep your account books clear and the second thing is to pay all your dues. 

ESG rating should show how your business is doing on these important factors. Just like you prepare your annual balance sheets, you need to prepare a detailed report on the performance of your business on these three important factors. Just like you want your investors to see your balance sheets to know how much profit you are making, you should show your performance on the important factors to the investors. 

How your business is doing on Environment, Social, and Governance factors? 

If you are using green technology, taking care of your employees, and maintaining your account books then you are doing well on the important factors. In other words, you are reliable and you can get government support. 

In the coming days, you will need to make your ESG accounting public, if you want to get money from investors. Big investors, especially international investors, want to invest money on businesses they work for environment, society, and the country. 

About us

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

ESG3.0 is a breakthrough approach to ESG that incorporates a digital data driven approach of data collection, management and 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 companies 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 Emission I Supply Chain/ Investment Portfolio