ESG Essentials for Corporates: What is the E in ESG?

04 September 2020

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Environmental criteria are the steppingstones towards sustainability

Investors and customers have come to expect environmental performance from the businesses they back.

Many business leaders have reached the same conclusion – from different directions.

Some view safeguarding the environment a key business responsibility, and simply doing the right thing. Corporate treasurers may see ESG as a way to reduce regulatory, legal and reputational risks. A few consider that delivering on the E in ESG is key to achieving a higher ESG score, which in turn leads to lower costs of capital and a better share price.

No matter the angle, a green strategy can deliver on all fronts, as shown in our video, part of the ESG Essentials for Corporates series.

This is particularly important as time is running out to curb climate change by limiting the global temperature rise to 2°C by cutting greenhouse gas emissions to zero by 2050.

A recent study among 125 CEOs found that, far from being a burden, environmental regulations foster innovation.

Most business leaders also view reputational risks and changing customer demand as the key drivers for defining a green sustainability strategy1.

How can it be done in practice?

  • By developing greener products and services that cause no environmental damage – and also help finding new markets and customers
  • By streamlining supply chains to shrink transport routes and by cooperating with supply chain partners to cut down emissions
  • By switching to cleaner energy or capture carbon with the help of new technologies
  • By cutting waste and instead adopting the circular economy concept

And there are many more options for businesses to help restore our ecosystem while also improving corporate top and bottom line. Time is running out ….Start with the E in ESG.

View our video and articles on ESG and climate change – and see how to get the E in ESG right.

Corporate clients who would like to discuss this topic further should contact:

Dr Arthur Krebbers, Head of Sustainable Finance, Corporates or

Varun Sarda, Head of ESG Advisory

Source: http://www.lse.ac.uk/GranthamInstitute/wp-content/uploads/2014/11/Impacts_of_Environmental_Regulations.pdf

ESG/Sustainability


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