There’s a growing global interest in ESG reporting? But, what’s the connection between EHS and ESG? And what are the advantages of disclosing your carbon accounting? All these questions and more are answered by none other than EcoOnline’s SVP of ESG and Sustainability, David Picton, and Chief Scientific Officer, Richard Tipper in our webinar: Synergy Between EHS and ESG Reporting.
With a combined experience of over 30 years in safety and sustainability, Picton and Tipper are well versed in all aspects of ESG. From driving initiatives focused on sustainability, to being part of the team that secured the Nobel Peace Prize for their work on climate change (that’s right, we said Nobel Peace Prize!), Picton and Tipper shared their insights to those on the journey of ESG reporting.
Keeping reading to explore:
ESG in context
To get a proper understanding of ESG, we must first define what this means. ESG stands for Environmental, Social, and Governance. These three pillars each represent a different aspect of your organization.
Environmental: Environmental refers to all things that have to do with the environment, such as the energy sources you are using, waste and water management, as well as your greenhouse gas emissions.
Social: Social entails how an organization treats both internal and external members. Aspects that are evaluated are diversity and inclusion, human rights, and community impact to name a few.
Governance: Governance represents how an organization is run where elements like anti-corruption, ethical practices, and supply chain management are all highlighted.
The ESG reporting boom
Over the last decade, ESG regulations have increased by 150%. Why? This is to keep track of all the different aspects and frameworks required in different locations around the world. It helps give professionals, like you, an idea of all the requirements you need to fulfill to be compliant.
Check out our Sustainability Compliance Navigator tool to find out the regulations that apply to your region.
Providing evidence that your business is responsible and sustainable through ESG reporting helps demonstrate the impact your organization is having on the planet. With this one true view, you can start to truly understand all aspects of your business and highlight areas of priority.
Adherence to the UN’s Sustainable Development Goals is also something organizations are working towards to achieve universal goals such as positive climate action, responsible consumption and production, and sustainable cities and communities. With 193 countries committing to realizing the 17 Sustainable Development Goals by the year 2030, your business has an important part to play to make this a reality.
In an EcoOnline survey, 124 organizations were asked several questions relating to ESG reporting. The following question stood out, as many feel the pressure to report their findings will only increase in the next two years.
This is no surprise, not only due to the increasing amount of standards and frameworks that have arisen, but also due to investor interest in this information. With this data, key stakeholders can see whether your business has a long-term sustainability plan and whether or not your organization is stable enough to partner with.
So, why should ESG reporting matter to your business? Not only does it give you an accurate view of all aspects of your organization from your supply chain to your greenhouse gas emissions, but it also helps you stay one step ahead of any unfortunate events.
For example, several climate disasters have negatively impacted businesses with damages to suppliers or disruptions in the supply chain. It’s been estimated that climate change might amount to £762 billion in losses by 2026. Having the steps in place to avoid such disruptions, such as secondary suppliers in less turbulent locations, can give you a competitive advantage as it helps your organization achieve a sense of resilience and stability.
“What CEOs are expecting to see in the next 10 years is a much greater predominance of environmental-related impacts on business,” shared Tipper. “This shows that people are paying serious attention and seeing that as climate change progresses, things are getting incrementally more severe. It's starting to be more about business resilience and how we adapt the business to be more fit for the future.”
The connection between EHS and ESG
So, what’s the connection between EHS and ESG and why is it important when reporting? Most notably, both these areas share the aspect of the environment, with ESG reporting allowing you to get a more in-depth view of specific elements such as your carbon accounting, waste and water management, as well as supply chain management.
Another interesting connection is that EHS professionals will most likely be the ones who will drive these sustainability initiatives in organizations. In fact, 36% of senior EHS decision makers believe that EHS will be a key deciding factor when it comes to a company’s ESG strategy. This is because these individuals rely on the same techniques used when collecting and analyzing EHS data such as collaboration with other teams and the workforce, a breakdown of silos, and enhanced communication. Think of EHS reporting strategies as the blueprint for a proper approach to your ESG reports.
Words of wisdom
Our experts shared several words of wisdom when it comes to embarking on this journey. Having helped several organizations in the past, Picton and Tipper drew on their past experiences to share these insights when it comes to ESG reporting:
- Get leadership buy-in. If senior management and leaders are committed to this cause, it will help drive initiatives and strengthen your sustainability strategy going forward. Picton said, “Think of it as a business case...Remember the 5 R’s: revenue impact, regulation, risk, responsibility and reputation. These 5 R’s are great ways of attracting senior buy in to build a business case around.”
- Have finance involved early-on. This will help enhance your data preparation and management so you can focus on taking action instead of administrative tasks. Tipper shared, “Once you get finance involved you usually get a better quality of data management. When you start sending spreadsheets around the company to collect data...you get bogged down in reporting rather than doing relevant actions.”
- Remember this is a continuous process. You’re always learning and gaining more experience and insight each time you complete your ESG reporting. This data helps shed light on the areas you need to prioritize and steps needed to take action. Picton shared, “This is an agenda of learning. The ink should never be dry, and we should be comfortable with that. I use a little acronym: LIFT – learn what matters, identify the priorities, focus on things we can act upon and try some initiatives, programs, and campaigns and then go back to top of the cycle again. Each time you get a little bit better with more experience and knowledge.”
What now?
Reporting your ESG metrics opens up a whole new world of company insight, giving you an accurate understanding of your business and the impact it’s having on the planet. This knowledge helps provide greater resilience and stability to your organization going forward.
Curious to gain more tips from our experts? Check out our webinar, Synergy between EHS and ESG Reporting, to find out more about this topic and how you can strengthen your sustainability strategy.