The year 2023 has highlighted the importance of environmental, social, and governance (ESG) considerations in business strategy. Particularly as companies face the headwinds of geopolitical instability, economic uncertainty, and climate volatility, underscoring the need for resilience and adaptability.
Most companies are increasingly incorporating ESG into their strategic goals, and have indicated it as a top priority. However, challenges remain in tracking and measuring the impact of these ESG activities.
According to Reuters’ recent "The 2023 State of Corporate ESG" report, the current state of affairs is driving a shift in how businesses view and integrate ESG into their strategic planning. This transformation is underpinned by several critical developments.
The regulatory landscape is undergoing significant changes, affecting various sectors differently. Businesses must navigate a complex web of new and existing regulations that impact ESG initiatives and reporting. In addition, as digital technologies mature, they are providing new insights into the ESG space.
These digital solutions enable businesses to gather and interpret ESG data more effectively, for decision-making and growth. The Thomson Reuters research highlights a growing consensus among C-Suite leaders—71% believe in the growing relevance of ESG in corporate performance.
In the complex realm of ESG, where businesses are compelled to align their operations with sustainability goals, the ability to measure and monitor impact stands as a need.
Within this landscape, tools like Synesgy are emerging, designed to distill recognised sustainability reporting standards into accessible analytics.
It has been designed by ESG experts, for those at the forefront of ESG strategy, as well as those beginning to navigate ESG. Translating the world's leading and recognised standards for best practice on sustainability reporting, into tangible metrics and insights, offering a clear picture of a company's ESG impact.
Best of all, Synesgy covers not only your business, but also the ESG impacts of your suppliers, setting you up for easy compliance with the upcoming CSDR reporting requirements for companies. The capabilities include:
- Creating a transparent 'ESG' RoadMap: Transparently communicating ESG initiatives, performance, and impacts to your team.
- Identifying and Managing Risks: Identifying and managing ESG risks, by assessing and reporting on ESG factors, companies can avoid potential vulnerabilities and adapt their processes accordingly.
- Regulatory Compliance: As part of a newly issued EU Directive, CSRD, many companies now need to assess and report on their Environmental, Social and Governance actions.
- Driving Innovation and Efficiency: When companies set ESG goals and track their progress, it prompts them to find innovative solutions to reduce waste, lower energy consumption, and optimise their supply chains. These improvements not only reduce environmental impacts but economically beneficial efficiencies.
By embracing these elements, companies and their suppliers can transform ESG into a catalyst for informed decision-making, risk assessment and financial growth.
As the corporate world continues to evolve under the increasing influence of ESG factors, the importance of monitoring and reporting on these considerations becomes evident. With military conflicts and natural disasters leading to humanitarian crises, ESG is embraced as a contribution to the overall agenda of managing risks and improving business resilience.
The future of the ESG market
Going into 2024 and beyond, ESG will continue to be a critical factor in how companies are evaluated and how they thrive amidst uncertainty and complexity. Tools that provide clarity and streamline the process can be a valuable asset for businesses aiming to maintain transparency with stakeholders, manage risks effectively, and meet regulatory requirements.
