ESG sustainability – Environment
This covers how a company interact with its natural environment, how its daily operation affects the environment and how they adverse the negative effects of it. Environmental issues may include a company’s energy usage, pollution and waste, use of natural resources and climate change. These factors have direct repercussions in an organization.
Climate change is considered as an Ultimate Risk Accelerant. For instance, companies located in Coastal areas. Considering the rising tides and flooding in those areas, it would impact the local infrastructure and real estate. And later on, labor force will decide to migrate due to economic and health risks. As a result, local business will deteriorate.
In an article written by Helen Hopper “ESG 101: Meaning, Importance and Goal”, corporate reporting on environmental performance should be based on six UN SDG’s: a. Clean water and sanitation, b. Affordable and clean energy, c. Responsible resource consumption and production, d. Climate action, e. Life on land, and f. Life below water. This would hinder these events from happening.