Understanding ESG Scores
ESG scores are a blend of quantitative and qualitative indicators, collectively evaluating an organisation's performance in key areas.
Understanding and improving ESG scores isn't just about being 'green'; it's about securing a prosperous and conscientious future for your business.
ESG scores are a powerful tool that investors and stakeholders use to assess an organisation's commitment to sustainability and ethical practices. To surpass the Carbon Border Adjustment Measures (CBAM) that are being implemented globally, South African exporters must comply with environmental regulations.
The Four Pillars of ESG Metrics
Environmental: This pillar examines carbon emissions, waste management, water usage, and energy consumption. It measures how environmentally responsible an organisation is.
Social: The social pillar evaluates issues like employee well-being and community engagement.
Governance: This pillar pertains to management practices, transparency, and honesty in reporting. It gauges the integrity of an organisation's operations.
Financial: ESG scores also consider financial performance, including revenue growth, profit margins, and return on investment. Good ESG practices can be financially rewarding.
How can my business improve its ESG scores?
Scope 2 emissions, originating from purchased electricity, represent a significant portion of an organisation's carbon footprint. A business that utilises renewable energy with the ability to prove it, through an International Renewable Energy Certificate (I-REC) will find itself in an advantageous position for improved investor ratings and a more competitive export product.
At Apollo Africa we believe sustainability is not just about reducing carbon emissions; it's about driving positive change and supporting the transition towards a greener, more responsible environment.
Interested in finding out how to improve your organisation's ESG scores? Let’s chat.
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