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Article: ESG what is it and where does energy fit?

ESG is quickly becoming a hot topic. We’re seeing more clients appoint ESG and sustainability specific roles within their business, but don’t just take our word for it… 

A PwC survey found that 60% of UK CEO’s are planning to increase investment in sustainability and other ESG initiatives over the next three years. 

Acting on ESG concerns is becoming more pressing and a strong ESG proposition can safeguard a company’s long-term success. But what exactly is ESG?

A brief look at ESG 

At its simplest, ESG provides an umbrella framework to assess a company’s impact on the environment and society, as well as its system of rules, practices and processes. 

  • Environmental – The impact a company has on the environment

  • Social – The contribution a company makes to fairness in society

  • Governance – A company’s process for decision making, reporting and ethical behaviours

ESG Wheel

Where does energy fit?

Energy is typically the largest indirect cost most businesses face and features in multiple areas within a standard ESG framework. Of course, energy fits within the Environmental segment – specifically under climate change and, pollution and resources, but it also impacts social and governance.

Reducing carbon emissions, switching to renewable energy and committing to Carbon Net Zero are three ways to improve a business’s environmental impact and support their ESG strategy.

If you’re exploring how your business can reduce emissions, we recommend reading our intels exploring Scope 1 and 2 emissions and Scope 3 emissions.

Our experts work with businesses across all sectors to support their ESG obligations and carbon management strategies. Speak to us today.

  • Author: Robyn Miller, Marketing Manager

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