How it works
Environmental, social, and corporate governance (ESG) reporting focuses on the performance of an organisation in three domains of sustainability – environment, society and corporate governance.
The environmental reporting includes how an organisation affects its environment by various indicators, including factors such as carbon emissions, energy, ozone, smog, land, air and water quality, deforestation, biodiversity, waste management and the circular economy.
The social reporting includes how an organisation contributes to the adjacent or distant societies. ESG reporting establishes the impact of organisations in factors such as local employment, community development, economic growth and customer satisfaction.
The corporate governance reporting relates to how organisations manage their own practices and procedures as well as how they meet regulatory requirements. Relevant governance factors include fair wage policy, discrimination, health and safety of employees, work hours, child and forced labour and bribery and corruption.
Due to the diverse range of factors being assessed, ESG reporting has grown from a corporate social responsibility initiative into a global buzzword within just a decade. Our experienced consultants at Carbon Neutral can demystify the process and enable businesses to make the right decisions in which level of assessment is appropriate for them.
Advantages of undertaking ESG assessment
Modern Slavery Act 2018
ESG reports address the necessary reporting requirements with regards to the Modern Slavery Act 2018. The Modern Slavery Act 2018 accounts for slavery, servitude, forced, compulsory labour and human trafficking in large businesses and other entities in the Australian market with annual consolidated revenue of AUD$100 million or more.
Essential matrix in the financial world
ESG performance is now an essential matrix in different capital markets of developed countries. Investors are increasingly focused on ESG related disclosures to take informed decisions on organisations.
Quantitative ESG reporting demonstrates major hotspots for each environmental, social, and corporate governance indicator. These then outline the weaknesses or drawbacks of an organisation and pathways for ESG matrix improvement.
Thrust for sustainability
ESG focuses on evaluation of diverse range of environmental, social and governance indicators which covers all three pillars of sustainability. Therefore, unlike carbon emissions or biodiversity assessment, an ESG report carries a much broader scope in the pathway to organisational sustainability.
Carbon Neutral is one of the leading providers of Environmental, Social and Governance (ESG) data and related consulting services. Our team includes dedicated sustainability professionals that can deliver client requirements in niche area. We leverage on innovative tools, software and database to assess ESG indicators both qualitatively and quantitatively.