Skyrocket your company’s sustainability by dropping your energy consumption,
shrinking your carbon footprint, and cutting costs!
What is ESG?
ESG is the acronym for Environmental, Social, and (Corporate) Governance – the framework for assessing the impact of a company’s ethical practices and its ability to run an environmentally sustainable business.
These three pillars represent a collective of topics, some being more relevant or material to your specific company:
- Climate Change
- Natural Resources
- Pollution and Waste
- Environmental Opportunities
- Human Capital
- Product Liability
- Stakeholder Opposition
- Social Opportunity
- Corporate Governance
- Corporate Behavior
Are ESG and Sustainability Interchangeable Terms?
Many people use these terms interchangeably, but sustainability is just one aspect of the more complex ESG practices. Being a sustainable company boils down to running a profitable organization while not having an overall detrimental effect on the environment.
ESG considers the above environmental factor, as well as a company’s social impact and corporate governance. Together, these three factors provide an ESG profile or score that plays a vital role when investors conduct risk assessments or when companies consider mergers and acquisitions.
What are the 6 Benefits of ESG Compliance and Running an Environmentally Sustainable Business?
Companies with high ESG performance have lower risks, higher returns, and greater resilience during a crisis.
1. Improved brand image and competitive advantage
The majority of American consumers consider the positive environmental impact of a company before making a purchase decision. That translates into millions of customers that favor companies with ESG-minded practices.
2. Increased productivity and reduced costs
Companies that invest in ESG business practices benefit from streamlined efforts that conserve company resources. This translates into increased employee productivity and reduced costs.
Renewable energy resources also play a significant role in creating a sustainable company, resulting in a considerable cost reduction in the long-term.
3. Increased ability to comply with regulations
With the spotlight on climate change and our dwindling energy resources, state and federal government agencies are increasing regulations to protect the environment. By implementing ESG practices now, your company won’t suffer any downtime due to non-compliance.
4. Ability to attract employees and investors
People, especially the younger generations, are drawn to companies with a positive impact on society and the environment. Organizations involved in ecological disasters or social welfare scandals take years, plus considerable funds, to recover.
5. Reduced waste
Companies have a host of waste-reducing activities at their disposal, such as simple efforts that include limiting printing and installing LED lights. A more impactful intervention would be onsite renewable energy generation, which stores the unused energy in a battery storage system.
6. Increased profits
All of the above benefits culminate into an increase in profits. Studies show that companies with high ESG rankings outperform their counterparts in medium and long-range terms.
The E in ESG
The environmental pillar is of particular importance to SPH Solutions, which is why we provide clients with integrated energy solutions to mitigate, perhaps even eliminate, negative environmental impact.
Ready to transform your business? Contact our team of professionals to discuss your tailor-made energy solution!