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7 Key Metrics Every Business Should Track When It Comes To Environmental Social Governance

ESG stands for environmental social governance. It is basically a method to evaluate investments based on their impact on the environment, society and governance. It is a form of sustainable investing that allows businesses to look beyond their profits and think about their corporate social responsibility.

With sustainability becoming the core focus, more and more investors and businesses are starting to emphasize ESG criteria. They look at statistics like carbon footprint, energy consumption before making an investment. Some even look for ESG reports before investing.

There are many ESG metrics out there. Which ones your business should focus on to be ESG compliant? That is exactly what we will discuss in this article. In this article, you will learn about seven key metrics every business should keep an eye on when it comes to environmental social governance.

7 ESG Metrics Businesses Should Track Here are seven environmental social governance metrics businesses can not afford to ignore.

1. Energy Efficiency Energy efficiency is one of the simplest perimeter to judge a business ESG rating. If you want to achieve a good energy efficiency rating, you should start off by looking for ways to cut down your energy consumption. This could include investing in energy efficient devices, replacing traditional bulbs with energy saving bulbs and unplugging devices when not in use.

You can also make the most of sunlight instead of using artificial lights and keep office temperatures in check. All these steps can go a long way in improving your business energy efficiency and drastically slash your electricity bills. Yes, this might not seem like much of a difference but it can make a massive difference in the long run. This will not only save tons of money on electricity bills but also allows you to see your business to get a high green star rating.

2. Carbon Footprint By far the most important ESG metric businesses should track and improve is the carbon footprint. It is used to measure the environmental impact of your products and services such as dedicated servers amsterdam on the environment from production to packaging to consumption to discarding the product.

Businesses can minimize the carbon footprint to reduce the impact of production on the environment and slow down climate change. Keep a close eye on greenhouse gasses and factory wastage and how it is disposed of to prevent the environment from getting polluted. Here are some of the ways you can use to bring down your carbon footprint.

  • Using replaceable and recyclable materials in your products

  • Harness the power of renewable energy

  • Use public transport whenever possible and minimize business travel

  • Improve the efficiency of production process to minimize waste and energy consumption

By taking all the aforementioned steps, you will see a positive change in your carbon footprint.

3. Employee Wellbeing Employee health, safety and wellbeing is probably the last thing on businesses' minds when it comes to environmental social governance. They don’t realize that happy, healthy employees can improve the productivity of your business like cheap dedicated server hosting does and research backs this up too. According to research, companies that put employee health and safety over everything else tend to outperform competitors that don’t by a huge margin.

Additionally, putting a lot of emphasis on employee wellbeing can help you reduce the risk of workplace accidents and minimize your employee turnover rate as well as bring down employee absence rate. This can have a positive impact both on the productivity of your business as well as the bottom line just like server part deals.

Your safety management processes, policies reflect how good your risk management capabilities are. Similarly, it can also be an indicator of your financial position as well as operational performance. When your employees feel happy and healthy, they are more likely to be engaged and productive..

4. Product Safety Product safety issues can not only dent your business reputation but it can also lead to financial losses as well as legal troubles for your business. It is also a critical factor that influences your ESG rating because it takes into account the materials used in your product. That is why it is important for businesses to take product safety seriously. How you handle the product related risks can make or break your business.

5. Business Ethics In order to win at ESG, you need to develop an organziation culture that revolves around business ethics. Once your company follows business ethics, your decision making will be driven by it. You will make decisions that are not only right for you but also for the environment and society. Start off by defining a code of conduct. This will help you to enforce business ethics and develop a culture of growth of dedicated server reviews at the same time.

6. Board of Directors Previously, it was believed that having like minded people in a team can work wonders but today that concept has changed. Whether you are constituting a small team or deciding on a board of directors, it is important to have diversity. This will help you bring a different unique perspective to the table and allow you to solve complex problems more easily.

Since the board of directors calls all the shots, it is important to have people from different backgrounds. This can also help you reduce the friction and resistance on decisions and make everything flow more smoothly. With a biased board of directors, you are more likely to bump into these issues.

7. Inclusion and Diversity According to research conducted by McKinsey, culturally and ethnically diverse organizations tend to perform better than their non culturally or ethnically diverse counterparts. You can launch an inclusion and diversity program that fosters the development of multilingual culture in your organization.

Diversity is just one piece of the puzzle. Having a diverse board of directors and team won’t benefit your business if you don’t include them in your decision

making process. Take regular feedback from your employees before making any decision and value their opinion.

Which metrics do you track to evaluate the success of your ESG initiatives? Share it with us in the comments section below.


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