The greenhouse effect
Greenhouse gas emissions have become a critical global issue as the world faces the increasing difficulties of climate change. These emissions, primarily caused by human activities such as fossil fuel combustion, deforestation, and industrial operations, lead to the entrapment of heat within the Earth’s atmosphere. The escalating concentration of greenhouse gases disrupts ecosystems, amplifies the occurrence of extreme weather events, and jeopardizes the delicate equilibrium of our planet.
In this context, environmental, social and governance (ESG) factors have gained prominence as a framework for addressing the issue of greenhouse gas emissions, promoting sustainable practices and social responsibility, strengthening corporate governance and positioning for long-term success in a rapidly evolving global landscape.
With the clock ticking and stakeholder expectations rising, it is imperative to take decisive action and embrace ESG reporting, thereby ensuring a resilient and prosperous future for businesses and the planet.
However, we all know how painful and time-consuming this activity of reporting can be: different data formats, extensive communication efforts to gather all the information….Recognizing these challenges, Energis has developed an innovative solution, an eApp that enables companies to seamlessly report their energy consumption annually while also facilitating continuous progress tracking.
Within ESG, Energis plays a key role in the environmental pillar by automating the collection of key data and information required for reporting purposes. By using our advanced technology, businesses can effortlessly streamline their reporting obligations, freeing up valuable time and resources for other critical activities.
If you are looking for a hassle-free approach to reporting and monitoring your KPIs, read on to discover how Energis eApp can provide you with a solution for comprehensive, publication-ready ESG reports.
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Emphasizing environmental, social and governance factors
As of 2020, 97% of the world’s 250 largest companies recognized the significance of integrating ESG considerations into their reporting.
ESG, which stands for Environmental, Social and Governance, represents the three interrelated pillars that guide sustainable and responsible business practices.
These three make up the ESG framework and represent the fundamental areas upon which companies should report. The primary objective of ESG is to capture the non-financial risks and opportunities associated with a company’s day-to-day operations.
When evaluating progress, it is common to encounter the terms “Scope 1, 2, and 3 emissions.” It is crucial to understand the implications of these numerical scopes and why three distinct categories exist.
Understanding the significance of scope 1, 2, and 3 emissions in ESG context
The classification of emissions into three scopes provides a systematic approach for categorizing the various types of emissions generated by a company throughout its operations and along its value chain, encompassing suppliers and customers.
Scope 1 includes emissions from sources that an organisation directly owns or controls; for example, heating oil and gas and the fuel used to power the equipment.
Scope 2 consists of emissions that an organisation generates indirectly in the production of the energy it buys and uses. For example, purchased electricity and/or steam used for own consumption.
Scope 3 emissions come from activities related to a company’s supply chain, such as the production of materials, transportation, and the use and disposal of products. These emissions are not directly controlled by the company, but are still linked to its operations. Scope 3 emissions include all sources that do not fall within the boundaries of Scopes 1 and 2.
The three pillars of ESG
The environmental pillar
The environmental pillar within the ESG framework places emphasis on a company’s impact on the natural environment and its dedication to sustainable practices. This pillar involves evaluating and managing environmental risks, mitigating carbon emissions, conserving resources, and fostering biodiversity and ecosystem preservation. Companies that prioritize the environmental pillar recognize the significance of aligning their operations with environmental sustainability objectives. They actively strive to minimize their environmental footprint and contribute to the transition towards a low-carbon and resource-efficient economy. Key areas covered under this pillar encompass climate change mitigation, energy efficiency, waste management, water conservation, pollution prevention, and sustainable sourcing.
Our cutting-edge solution and deep expertise enable organisations to efficiently collect, analyse and report ESG data, ensuring compliance with regulatory requirements while harvesting the many benefits of a robust framework.
With our cloud-based eApp, you can generate comprehensive reports that accurately track key performance indicators and provide valuable insight into your ESG performance, enabling you to make data-driven decisions and drive continuous improvement.
Additionally, it also provides you the flexibility to set energy reduction targets, allowing you to set ambitious goals and effectively monitor progress.
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Book a demoThe Social Pillar
The social pillar of ESG covers how a company manages employee development and labor practices. It includes reporting on product stewardship, ensuring the safety and quality of the offered products. Furthermore, it entails reporting on labor standards and health and safety practices throughout the supply chain. Companies are also expected to address contentious sourcing issues and provide equitable access to their products and services for underprivileged groups. The social pillar recognizes the importance of promoting inclusive and diverse workplaces, upholding human rights, and making positive contributions to the communities in which the company operates.
The Governance Pillar
The governance pillar within the ESG framework centers on the structure and practices of corporate governance within a company. It encompasses matters such as shareholder rights, board diversity, executive compensation, and the linkage between executive pay and sustainability performance. Additionally, the governance pillar includes an evaluation of corporate behavior, addressing issues such as anti-competitive practices and corruption.
Companies that prioritize the governance pillar seek to maintain high standards of transparency, accountability, and ethical conduct.
By integrating these three pillars into their business strategies, companies can effectively navigate the complex landscape of ESG considerations and work towards achieving sustainable and responsible practices.
Navigating ESG reporting: where to begin
Embarking on an effective ESG reporting journey implies a structured process.
Identify relevant ESG factors
To lay a strong foundation for reporting, organizations must first identify the environmental, social, and governance components that hold significance for their operations. This entails considering industry-specific considerations, stakeholder expectations, and regulatory requirements. By pinpointing these factors, organizations can ensure that their reporting efforts are targeted and aligned with key sustainability priorities.
Set goals and targets
Establishing clear and actionable goals is essential to drive progress and monitor performance over time. These goals should be specific, achievable, and time-bound, reflecting the identified ESG factors. By setting robust targets, organizations can effectively measure their advancements in addressing ESG issues and demonstrate their commitment to sustainable practices.
Collect and analyse data
Organizations should gather both quantitative (numbers, statistics) and qualitative data from various sources, including internal systems, surveys, audits, and external resources.
With Energis.Cloud, you can be sure that the quality and accuracy of your ESG reporting data is guaranteed. Our eApp automates data collection processes in near real-time, eliminating the need for manual intervention and ensuring complete, accurate and consistent data.
Once the information is seamlessly collected, our eApp goes the extra mile by calculating key performance indicators on your behalf. This efficient feature saves you valuable time and simplifies the reporting process, allowing you to focus on analyzing and interpreting the results.
With Energis.Cloud you can continuously monitor your progress against pre-defined targets throughout the year. With constant visibility of your performance, you can make informed decisions, maintain accountability and stay on track towards your sustainability goals.
Report and Disclose
Compile the collected data into a comprehensive ESG report or disclosure that effectively communicates the organization’s ESG performance to stakeholders is essential. The document should be transparent, concise, and easily understandable. You can consider adopting recognised frameworks such as GRI or SASB to ensure consistency and comparability.
We understand that ESG reporting encompasses a diverse range of standards and guidelines, and for this reason our solution is designed to accommodate these variations seamlessly.
In fact, with Energis.Cloud eApp, your existing reports can effortlessly adhere to ESG standards, regardless of the specific standard or format they follow.
Whatever the standard or framework, Energis.Cloud eApp is compatible with it, allowing you to get the report you need while maintaining compliance and consistency.
Engage stakeholders
Engage with internal and external stakeholders, including employees, investors, customers, and communities, seeking their input and gaining an understanding of their ESG concerns. Transparently communicate the organization’s ESG efforts and progress to build trust and maintain open lines of communication.
Continuous improvement
Regularly review and refine the ESG reporting process, while improving data collection methods, measurement techniques, and reporting practices.
Verification and assurance (optional)
Consider engaging external assurance providers to enhance credibility and transparency. Independent experts can assess the credibility and accuracy of the reported ESG data. Verification and assurance provide stakeholders with confidence in the reliability of the disclosed ESG information, showcasing the organization’s commitment to accountability and transparency.
It is crucial to recognize that ESG reporting is an ongoing journey. By consistently integrating ESG considerations into business strategies, operations, and decision-making processes, organizations can drive long-term value, contribute to sustainability, and pave the way for a more responsible future.
The added value that Energis.Cloud brings
In today’s business landscape, compliance with ESG reporting has evolved from an option to an imperative for companies worldwide. Organizations that prioritize sustainable energy management and embrace ESG principles not only enhance their appeal to investors and customers but also contribute significantly to a more sustainable future.
At Energis, we empower companies to achieve their ESG goals by providing a comprehensive solution that enables them to monitor and manage their energy consumption effectively. By gaining visibility into energy usage patterns, organizations can identify areas of opportunity to reduce their carbon footprint and drive sustainable practices.
Start experiencing the efficiency and strength of our eApp as we guide you on your journey towards improved ESG performance, regulatory compliance, and tangible positive outcomes. Whether you are a seasoned practitioner or new to the realm of ESG, our team of experts is ready to assist on the way.
Contact one of our experts today, and let us help you embark on a transformative journey towards sustainability and energy efficiency.
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