Climate change is impacting us globally and affecting the way businesses are being conducted. The affects that the weather has brought can be seen to be changing the way people live their daily lives. In order to have a sustainable business the owners have realized that to participate in keeping a minimum impact of climate change the business operations can contribute, be it in the ambit of reducing carbon emissions or creating an environment whereby the parties collaborating in a business activity all are brought towards the direction of positive impact on having a safe living environment.
On the social aspect there is a turn in relationship behaviors in the corporate world where more emphasis is being placed on having a healthy workplace which is conducive to employees. People are given the chance to report unhealthy work practices whilst being protected from the aggressors. Suitable committees and forums are being provided for employees to share their work grievances and to get true merit where due.
Corporate ownership is increasingly embarking on good governance practices where they have realized that in order to get the true potential from their business activities a sound system of good oversight is very much needed. Many Corporations are instituting policies and procedures with proper check and balance and laying more emphasis on best practices to efficiently govern the way businesses are operating. Investors have realized that maximizing returns is also augmented by controlling leakages of revenue.
Although there is a significant global pressure on reducing carbon emissions and ensuring that all stakeholders participate, be it governments or corporate entities, there still is the ever evolving need to make sure that the outcomes of participation are uniformly measured so that the contribution can be measured on a standard which is acceptable by all parties. Globally there has been a significant progress in achieving global standards for reporting the contribution of corporate entities towards ESG. The International Sustainability Standard Board has also been proactive in this regard.
Regulators around the world have also stepped up and issued regulatory requirements applicable to various corporate entities on Going Green and contributing towards curtailing carbon emissions creating good governance practices and having better social setups. For example, in the banking industry measures are taken to evaluate the borrower’s business practices ascertaining whether they are not aggravating carbon emissions to worsen climate change. This in turn brings about the realization from the business owners desirous of credit to follow the global practices in achieving the global standards on climate change.
Although it is challenging for the business practices to shift towards reducing fossil fuel energy consumption and moving towards alternatives like utilizing solar energy, etc., the thought process has begun, and corporations are viewing related studies with interest. The road ahead in this matter is tough.
With increasing awareness and knowledge on the effects of good ESG practices by corporate organizations, the business owners, employees, and stakeholders will be coming on the same page and ensuring a sustainable environment for work and living.
Many Corporations are instituting policies and procedures with proper check and balance and laying more emphasis on best practices to efficiently govern the way businesses are operating. Investors have realized that maximizing returns is also augmented by controlling leakages of revenue.
ESG practices and reporting standards are expected to be ever evolving and improve with the passage of time and experience. It is all geared up to learn from data and improve the impact on people and our planet to make it more sustainable for generations to come. The realization and contribution of the corporate world is a step in the right direction towards achieving the global ESG goals.
In order to have a sustainable business the owners have realized that to participate in keeping a minimum impact of climate change the business operations can contribute, be it in the ambit of reducing carbon emissions or creating an environment whereby the parties collaborating in a business activity all are brought towards the direction of positive impact on having a safe living environment.
This article was first published by Chartered Accountants Ireland at the following URL: https://icap.org.pk/files/per/publications/PA/2022/apr-june/apr-june-2022.pdf
