If the last two years are anything to go by, it’s more important than ever for your workforce to be set up well. Increasingly, the focus is settling on ESG. But what does that mean and how can workforce and supply chain management software help you manage this?
What is ESG?
Beyond being buzzwords, ESG is gaining prominence. Especially as businesses plan for the future and look to make business decisions. So, what does it stand for? Environmental, Social and Governance.
Environmental: how does your business impact the environment? The E looks at what your business does in areas like greenhouse gas emissions, waste management and energy efficiency.
Social: how does your business support people? The S looks at how your business manages relationships with employees, contractors, suppliers, and customers in areas like human rights, modern slavery, supply chain standards, and adherence to work health and safety.
Governance: what are the rules or principles underpinning your business? The G looks at the defined rights between all parties—employees and stakeholders—audits and internal controls.
In this article on World Economic Forum, they spoke to the importance of ESG in business:
“Global mega-trends such as climate change, geopolitical shifts, and the continuous emergence of disruptive technologies, as well as the COVID-19 pandemic have made Environmental, Social and Governance (ESG) issues even more pressing for executives, boards, and policymakers.
Pioneering technologies and solutions in advanced manufacturing are opening up new opportunities across industries to measure and report accurate and consistent ESG metrics.”
What Are ESG Metrics?
They’re what allow you to measure the environmental, social and governance performance of your business. Alongside being transparent with consumers and investors, when you know your areas of risk, you can work towards improving them.
What Happens When You Improve Your ESG Rating?
When you improve your company’s ESG rating, there’s a positive flow on effect in the areas of:
- Climate change and the environment
- Human rights
- Worker safety
- Diversity, equity and inclusions
- Corporate social responsibility
What Can I Do To Improve My Rating?
ESG is becoming an increasingly important standard used globally, and is a metric used by potential investors when looking to invest in certain businesses.
It’s why when our parent company Avetta launched their new platform, Avetta One™, there is a focus on sustainability and ESG.
Here’s How Avetta Can Help
Avetta’s ESG product works like this.
We collect ESG-related details (like those outlined above) from your suppliers and contractors. Using this data, we provide you with a baseline ESG score for your external workforce.
This allows you to visualise the maturity of ESG across a broad spectrum of international standards. Based on the information gathered, your suppliers and contractors are able to track their progress and take suggested actions to improve their score. When you know your areas of improvement, you can take appropriate action.
All data can be easily reported on to various stakeholders and investors.
It’s simple, customisable, and best of all, efficient.
Have you thought about improving your ESG rating this year? Talk to us today.