Increase profit growth
Reduces costs
Reduces regulatory and legal interventions
Increase employee productivity
Optimize investments
First of all, it must be specified that the actions and interactions resulting from them, inherent to the three factors are strictly connected and interdependent.
It is clear, therefore, that acting on each of them has repercussions and finland whatsapp resource consequences in all areas: investments related to environmental sustainability produce effects on the social quality in which a company operates, in addition to improving the internal dynamics of Governance, and vice versa.
Ultimately, investments made in these directions have positive effects on the overall business "performance", not only in purely financial terms but also in terms of the management fluidity of internal and external processes. Clearly, the improvement and optimization of economic and human resources creates a path full of cost reduction, greater satisfaction of the individuals involved in business life, produces a targeted approach to investment operations and minimizes corrective interventions for any operational flaws with respect to current legislation.
All this set of factors improves the external perception of the Brand by consumers and/or users, automatically increasing the objective value of the products/services provided.
For example, the correct management of energy consumption and waste disposal produces a positive effect on the company reputation that facilitates the insertion in a new market area and makes the relationship with the Public Authorities responsible for controlling the legality of business implementations fluid, facilitating the granting of permits and authorizations to act in certain areas and situations. Furthermore, such careful management significantly reduces energy consumption costs.
Another determining element is the care and attention to the satisfaction of the company's employees/collaborators, as this social approach to the progress of internal working life produces greater corporate loyalty with a consequent increase in productivity , both in quantitative terms and in terms of the quality of work performance.
The increase in the value of the company based on a positive perception of it by investors should not be underestimated , as they see future development possibilities by virtue of the capacity for innovation that it expresses with respect to the dynamics of recurring social sensitivity.
All these factors, together with others oriented in this direction, produce a positive increase in profits for the company, in immediate financial terms and in intangible, but no less decisive, terms, such as the overall economic value of the brand.
FAQ on Corporate Sustainability and ESG Criteria
What are ESG criteria? ESG (Environmental, Social, Governance) criteria are standards used to evaluate a company's sustainable practices in terms of environmental, social and governance.
Why are ESG criteria important for companies? ESG criteria help companies improve their reputation, attract investors, reduce operating costs, and increase productivity and employee satisfaction.
How are ESG criteria assessed? ESG assessments are carried out by specialized agencies that analyze corporate documents, public information and data provided by authorities.
What are the benefits of adopting ESG criteria? Adopting ESG criteria can lead to increased profits, reduced waste, better relations with authorities, and a more positive corporate image.
Are companies required to follow ESG criteria? It is not a legal requirement, but many companies choose to follow ESG criteria to improve their competitiveness and respond to growing consumer demands for sustainable practices.
What does the “Environmental” criterion include? The “Environmental” criterion concerns the responsible management of natural resources, the reduction of CO2 emissions and the adoption of sustainable practices.
What does the “Social” criterion include? The “Social” criterion includes respect for human rights, good working conditions, and the absence of discrimination.
What does the criterion “Governance” mean? The criterion “Governance” concerns corporate policies for transparency, ethics and effective management.
How do ESG criteria influence consumers? ESG criteria help consumers make more informed and ethical purchasing decisions, preferring companies that are committed to sustainability.
ESG contributes to the creation of value in five ways :
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