An ESG report serves as a fundamental assessment of a company’s current performance on Environmental, Social, and Governance (ESG) issues. It highlights the incorporation of ESG measures and informs stakeholders about the progress of ESG initiatives. It is becoming increasingly common to see scoring criteria used to evaluate a bidder’s ESG proposal and initiatives.
The ESG report may pinpoint areas where the company can lessen its environmental impact, such as reducing greenhouse gas emissions, enhancing energy efficiency, or adopting more renewable energy sources. Using this information, the company’s ESG proposal could include specific initiatives like implementing energy-efficient technologies during projects to reduce energy consumption and costs.
The ESG report may identify areas for the company to enhance its social impact, such as labor practices and diversity and inclusion efforts. The ESG proposal could then address these issues with initiatives like implementing diversity and inclusion programs during projects to boost employee satisfaction and reduce expenses related to recruiting and training new staff.
The ESG report may highlight areas where the company’s governance practices can be improved, such as risk management processes. The ESG proposal could incorporate specific initiatives, like implementing a more robust risk management framework during projects to mitigate potential losses arising from breaches or non-compliance.
In the meantime, the assurance of the ESG report remains significant as it demonstrates the company’s commitment to sustainability and the establishment of a robust greenhouse gas management framework. Providing reliable information on scope 1 and scope 2 emissions can indirectly support clients in their future supply chain carbon management efforts. Performance assurance is a fundamental step for corporates to create GHG emission inventories, set net-zero targets, or adopt Science-Based Targets (SBTi). Ensuring the reliability of the ESG report is instrumental in achieving these goals, as accurate GHG calculations from suppliers are essential.
Consequently, we strongly advise our clients to consider ESG report assurance to ensure the credibility of their sustainability efforts. Overall, the ESG report not only offers valuable insights into the company’s current ESG performance and informs the development of ESG initiatives but also adds value by demonstrating that the use of its products or services is already ESG-positive.
