ESG Reports are a critical tool for effecting climate change. Knowing your emissions output is…
Environmental, Social, and Governance (ESG) reporting has recently become a prominent discussion in board rooms around the world. What used to be employed as a marketing angle to interest investors or attract new recruits is now a critical tool to show how a business is engaged in real world issues.
Interest in environmental, social, and governmental issues has grown exponentially since the onset of the pandemic, and has been driven by corporations and investors who are able to leverage a company’s ESG strengths to prove to the public that they are committed to growth and change, which often leads to more investor interest and more business.
Read more to find out about the Top 4 Ways having an ESG Report can help your business create value:
1. Increased Sales and Revenue – Top-Line Growth
Businesses are able to expand into new markets and increase their operations in current sectors when they showcase their commitment to providing ESG solutions. Most new governmental contracts are being awarded to companies that have an ESG report that can prove their sustainability efforts, which will bring in more and larger contracts that provide more opportunities for growth.
More and more Millennials are concerned with environmental impacts associated with their purchases, and are willing to pay more for sustainable products, increasing sales and revenue. Companies who are more vocal about their ESG-related activities often have better perception in the public-eye and are easier to award new contracts and resources to than companies with lower social standing.
2. Reduced Operating Costs
Part of a good ESG strategy is tracking key metrics associated with energy consumption, water consumption, waste and raw material usage, and other utility costs. Having the ability to chart and compare utility usage across all platforms allows you to detect utility leaks, theft and efficiencies as well as forecast trends to improve operational efficiency and reduce costs. Our Verdafero InSights SaaS platform securely monitors, analyzes and reports all vital utilities within a commercial building or property portfolio. Learn more >
3. Attract More Investors / Lenders
With more and more studies showing that companies with ESG reports outperform their competition, it’s no surprise that investors and lenders are keen to prioritize them for business deals.
“Global sustainable investment now tops $30 trillion — up 68 percent since 2014 and tenfold since 2004.”
ESG reports focus on performance, giving investors the opportunity to use that information to evaluate whether or not they are meeting expectations and determine who to invest in. As public concerns grow around climate change and sustainability, investors are forced to look at ESG performance when evaluating a company’s risk in investing in them, encouraging more companies to improve their own performance.
Since small to mid-size companies often need to raise capital to stay competitive with their larger corporate counterparts, they will need to offer their own ESG reports to stay relevant and ensure that they are considered during rounds of funding.
4. Attracting and Retaining Talent
These days, most employees are looking for more than just a 9-5 that pays the bills. Having a job that is inspiring, making a positive impact, and working toward a common goal are requirements. Having an ESG Report that states the company’s goals and efforts to achieve them are high priorities for job satisfaction and job retention. When companies don’t fulfill the values needed by an employee, they will quickly look for other options.
New generations of employees expect their employers to have a greater concern about environmental and social issues that arise, and expect that there are policies in place to respond to them. When workers are satisfied with their jobs they are shown to work harder, work longer hours, and perform better, providing your business with better service.
Verdafero InSights™ offers a wide range of features and functionality to power ESG analysis and reporting across your entire real estate portfolio. At Verdafero, we’re continuously adding new features to develop a scalable platform to enable you to produce your ESG strategy and reporting needs.
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