Read on to learn more about ESG reporting and how you can boost your company’s ESG score.
What is ESG Reporting?
ESG stands for environmental, social, and governance. ESG reporting provides a summary of qualitative and quantitative data on a company’s impact in each of these three realms.
Let’s take a closer look at each of the three categories.
This data looks at a company’s environmental impact. For example…
- What actions has the company taken to combat climate change?
- How has the company reduced carbon emissions?
- What has the company done to preserve biodiversity?
- What does waste management look like for the company?
- How is the company accountable when it comes to resource use and its supply chain?
Social data asks what a company is doing to improve lives at an employee, community, and society level.
- How does the company nurture the wellbeing of its employees?
- What does the company do to protect and uplift marginalized communities, like LGBTQ+ people and BIPOC?
- What is the level of employee engagement?
- How is the company involved in the community?
- How does the company protect human rights and labor standards?
Governance data examines how a company is adhering to laws and government standards to stay ahead of corruption for a sustainable future.
- What are the company’s internal controls? How effective are they?
- What policies and principles are in place to govern leadership, board composition, executive compensation, etc.?
- How does the company protect shareholder rights?
- How does the company govern employee and consumer data privacy?
Why is ESG Reporting Important?
Transparency is becoming more and more important for an organization to stay trustworthy and relevant in today’s market.
Managing environmental, social, and governmental factors used to be a nice bonus. Today, it is the bare-minimum expectation for organizations. Consumers and employees alike expect intentional consideration of these three factors.
Neglecting them will lead to a negative view of the organization, and eventually hurt your bottom line. Investing in corporate wellness signals to investors, employees, and consumers that you care about the people at your company and in your community at large.
What is an ESG Score?
An ESG score or ESG rating is a number, similar to a credit score or bond rating, that represents a company’s ability to meet its ESG commitments. ESG scores also take into accounts actual performance and risk exposure.
These scores are assigned by third-party providers, which each use a different set of criteria.
How do Corporate Wellness Initiatives Boost ESG Scores?
Trends show that wellness is now a major, foundational factor when it comes to positive ESG outcomes. Wellness can be found in each area of the reporting system.
In addition, a healthy, engaged workforce positively impacts a company’s bottom line. By promoting employee wellbeing, your organization benefits socially and economically.
Boost Your ESG Score with DHS
Looking to show your employees, investors, and community that you care about health and wellbeing? DHS will partner with you to create a unique wellness plan that fits the needs of your organization.