ESG stands for Environmental, Social and Governance and was first used in 2004 in a United Nations report. The acronym represents the evolution of corporate sustainability and states whether a company has good administrative practices and if it seeks ways to reduce negative impacts on the environment, being concerned with society in general, including its employees.
The objective is to prioritize the well-being of the planet and society generating positive impacts on every public of interest, such as increasing environmental awareness, reducing social differences, and standing against corruption.
The three pillars of ESG are: environmental, which demonstrates corporate policies and practices focused on the environment; social, related to community initiatives, human rights, labor laws, diversity, security, data protection, social investments; and governance, aimed at administrative policies, audits, anti-corruption practices, etc.
Like any other corporate initiative, the implementation of ESG depends on senior-level mentoring and team engagement to assess the company’s current scenario and plan strategies, actions and the acquisition of tools that facilitate the implementation of sustainable practices.
To draw the current scenario effectively, a starting point can be the application of existing models such as the GRI (Global Reporting Initiative), which helps companies around the global on mapping their sustainability initiatives. It is also possible to look for opportunities in existing reports such as the UN Sustainable Development Goals or the 10 principles of the UN Global Compact.
Technology and innovation
Data collection and availability, information security, document storage and management, integration, connection, and governance. It is impossible to deny that there is a direct relationship between the application of ESG and technology.
It is essential to have tools that can facilitate the implementation and management of sustainable practices to obtain results and ensure that these initiatives become a cycle within the corporation, with continuous monitoring, improvements, and new implementations.
Why invest in ESG?
Environmental impacts, climate change and human rights are constant issues in every global leaders’ meetings. It has become a priority not only in the administrative sphere, but also in the economic and financial spheres. Investors now have the ESG pillars as risk analysis and decision-making factors.
The connection between ESG and the financial market is quite simple. Nowadays, investors look for companies that are able to adapt to changes, that support sustainable development, that see innovation as a tool to improve future prospects, reduce inequalities and guarantee opportunities and inclusion.
SafetyDocs and ESG
SafetyDocs is a document management system that allows to create approval flows, track expiration dates, save approval history and store documents digitally safely in cloud technology and access from any device.
The system can assist companies in the implementation of governance practices, in addition to the implementation and maintenance management, centralizing document management, approval flows and keeping its history with transparency and accessible whenever it is necessary.
Are you looking for a tool to help your company implement and manage sustainable practices? Talk to us!