When a company endeavours on a mission, there are various activities lined up which drive the products. At the end of the day, the performance counts and they are revealed through the Annual Report that describes the firm’s delivery mechanism over the last 12 months.

But it is not just all about annual report, a comprehensive report also encapsulates the ESG task which is published by companies on their impact on environment, social and governance.

The Tenets of ESG Report

The ESG Report caters to an overall understanding of the company’s working impact on the environment and society. It also assesses the tough situations companies face. It is imperative in the sense that it works as a communication tool that derides any doubt on the part of sceptical observers and apprise them of the sincerity of the company.

An ESG Report is important because there is a curiosity amongst the investors and stakeholders who are concerned about the social and environmental impact of the company’s activities.

Questions Frequently Asked

While preparing an ESG Report, the agency queries on several fronts so as to get a broad overview on how careful a company has been when it comes to being careful on the environmental and social issues. So, it is an absolute necessity that pertinent questions are asked so that the company can display a proper picture on its activities.

 Questions are related to the mandate, main activities, mindset in dealing with stakeholders, the ESG factor in line with the company policy, key areas of focus on ESG and other areas. One very relevant question is the company’s priorities pertaining to ESG and also an overview of its targets and way of functioning.

Some other features

The commitment of a company vis-à-vis ESG is frequently asked and through that the sincerity of the firm on ESG is gauged. Also, there are key points on ESG approach, priorities and highlights of the company that is of great relevance.

Other questions are related to company’s parameters on the approach and mindset of the firm on the ESG sphere, renewable energy portfolio and transition, land use and bio diversity, Greenhouse gas (GHG) and air emissions, waste and materials management, water management, climate change, public health and safety, employee health and safety, short-term and long-term ESG goals and targets, promotion of ESG practices within the supply chain, total energy consumption (in kWh) for the reporting period, intention to leverage technology to improve its ESG performance, to mention a few.   

 Also, queries are put to assess the steps taken by a firm to mitigate the environmental impact of projects on the local ecosystems. In terms of governance, the structure of the board of directors, and process to ensure its independence, along with the organisational preference on environmental and climate-related risks are also tried to comprehend.  

Utility of ESG Report

In an era where pollution is an anathema, it is very important that companies do conform to anti-pollution regulations strictly but consumers and governments will be inquisitive as to how much effort the company is putting in on this front.

And it is in this context that the ESG Report holds the key.