ESG is increasingly the benchmark by which investors determine a company’s health – ethically, financially, and environmentally.
Environmental, Social, and Governance (ESG) is an essential set of standards and practices for a company’s operations. Envionmental criteria consider the company’s impact on the environment, including GHG emissions, water usage, and other environmental standards. Social criteria measure the company’s relationships with the people it serves both internally (employees) and externally (suppliers, customers, communities, etc.) Finally, governance pertains to the company’s leadership, including executive pay, audits, internal controls, and shareholder rights, if applicable.
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Simply put, ESG is used by investors to screen potential investments. Companies with low ESG may be a risk due to their environmental practices, while companies with a high ESG may be a better investment. In fact, investors are increasingly applying ESG as part of their analysis to identify material risks and growth opportunities.
ESG is a crucial differentiator for socially responsible investors. These investors consider it essential to incorporate their values and concerns into their investments, instead of just looking at profitability or other traditional markers of business health.
Other things to consider when discussing ESG:
Our proprietary technology, VIRIDIS, is a key differentiating factor that helps companies improve their ESG. We do this by:
Our technology can use wireless technology to monitor anything in your business — from walk-in freezers to flat-tops to toilets to HVAC units. From the day that our wireless hardware is installed, energy, water, waste, and other utility-specific data is collected and monitored by our engineers. By collecting data, we are able to identify and prioritize which locations are environmentally healthy – and which need a bit more work.
With our wireless technology installed and ESG drivers identified and prioritized, we are able to understand the baseline for your company and locations. This step is integral to tracking the effectiveness of your ESG program and reporting to your investors and stakeholders. We take a data-first approach to making the best decisions for your business – and the environment.
With the baseline identified, now we can work together to set SMART (Specific, Measurable, Achievable, Relevant, and Time-Bound) goals. These goals can be linked to environmental standards, like the UN climate targets, or against your company’s internal goals.
Ready to impact your ESG?