Businesses are Embracing ESG Beyond Compliance Req
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Posted On: 12/27/2024 4:48:33 PM
Businesses are Embracing ESG Beyond Compliance Requirements
Over the last couple of years, ESG requirements have moved from being an elective to compulsory for most businesses globally.
With the demand for proper reporting growing as more stakeholders ask for greater transparency, there is a need for businesses to embrace ESG beyond compliance requirements, especially in a world that’s becoming increasingly concerned with the impacts our actions have on the individuals and environment around us.
ESG can help businesses achieve growth while also adding value in the long run. Studies have shown that the global shift towards a low-carbon, sustainable economy has a forecasted value of $40 trillion. This means that there are many opportunities to be seized by businesses with the know-how, and this doesn’t just mean complying with ESG reporting requirements and filing reports.
To unlock this value, firms first need to understand that ESG factors affect the bottom line of every business, albeit in different ways. For instance, climate change influences the efficiency of supply chains as well as raw material overall costs.
By understanding the link between financial performance and ESG, businesses can mitigate any threats while elevating their performance.
So, what can businesses do to leverage the full power of ESG?
For starters, leaders need to start viewing ESG as a key component to their business models. Businesses can also create an environment of accountability, honesty, and openness around their ESG metrics and targets, which strengthens relationships with employees, consumers and investors.
In addition, firms can implement strategies to reduce greenhouse emissions and practice social governance, which may open them up to new growth opportunities in the market and help unlock new revenue streams.
Already, firms that actively deal with social inequalities, human rights, and climate change are enjoying the gains. This may be because investors often perceive businesses with good ESG performances to be better long-term investments, in addition to being less risky.
By using fair labor, improving waste disposal, and decreasing the consumption of energy, companies may also record better valuation, and reduced costs.
With consumers being drawn to firms that align with their values, there is need for businesses to demonstrate a genuine commitment to ESG, a move that helps enhance their reputation and in turn, offers a competitive advantage in industries where consumer values play a crucial role in decision-making.
Experts expect that in the short-and long-term, businesses like Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) that understand the importance of the relationship between financial performance and ESG performance will reap the rewards.
NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
Over the last couple of years, ESG requirements have moved from being an elective to compulsory for most businesses globally.
With the demand for proper reporting growing as more stakeholders ask for greater transparency, there is a need for businesses to embrace ESG beyond compliance requirements, especially in a world that’s becoming increasingly concerned with the impacts our actions have on the individuals and environment around us.
ESG can help businesses achieve growth while also adding value in the long run. Studies have shown that the global shift towards a low-carbon, sustainable economy has a forecasted value of $40 trillion. This means that there are many opportunities to be seized by businesses with the know-how, and this doesn’t just mean complying with ESG reporting requirements and filing reports.
To unlock this value, firms first need to understand that ESG factors affect the bottom line of every business, albeit in different ways. For instance, climate change influences the efficiency of supply chains as well as raw material overall costs.
By understanding the link between financial performance and ESG, businesses can mitigate any threats while elevating their performance.
So, what can businesses do to leverage the full power of ESG?
For starters, leaders need to start viewing ESG as a key component to their business models. Businesses can also create an environment of accountability, honesty, and openness around their ESG metrics and targets, which strengthens relationships with employees, consumers and investors.
In addition, firms can implement strategies to reduce greenhouse emissions and practice social governance, which may open them up to new growth opportunities in the market and help unlock new revenue streams.
Already, firms that actively deal with social inequalities, human rights, and climate change are enjoying the gains. This may be because investors often perceive businesses with good ESG performances to be better long-term investments, in addition to being less risky.
By using fair labor, improving waste disposal, and decreasing the consumption of energy, companies may also record better valuation, and reduced costs.
With consumers being drawn to firms that align with their values, there is need for businesses to demonstrate a genuine commitment to ESG, a move that helps enhance their reputation and in turn, offers a competitive advantage in industries where consumer values play a crucial role in decision-making.
Experts expect that in the short-and long-term, businesses like Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) that understand the importance of the relationship between financial performance and ESG performance will reap the rewards.
NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
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