In today’s ethically conscious society there is a demand from the public, organisations and individuals that the planet be put before profit, calling for companies to incorporate more sustainable business practices and reduce their environmental impact.
Here we will explain how achieving ISO 14001 certification can help to improve your ESG score and how that could help your business.
- What is ESG?
ESG stands for Environmental, Social and Governance which make up its three pillars;
- Environmental issues like pollution, contamination and carbon emissions
- Social issues such as workplace diversity or fair and equal pay
- Governance which covers things like gender equality in leadership teams and transparency in the boardroom
ESG is an umbrella term used to cover the areas of businesses that impact the environment, communities or social issues. ESG measures a company’s exposure to long terms environmental, social and governance risks and shows if they are managing these risks well relative to their peers or if they have higher unmanaged exposure.
ESG reporting has become vital for companies, clearly demonstrating their transparency and commitment to making the world a better place. An ESG score or rating reflects where they stand in their efforts which in relation to the environment refers to climate change and associated risks.
Companies who embed ESG into their business and embrace it can benefit from;
- Boosted company reputation
- Attract more investments and funding
- Stay ahead of compliance and regulations
- Improved risk management
- What is ISO 14001?
ISO 14001 is an international standard that sets out framework, criteria and requirements for an environmental management system that is used to improve environmental performance.
ISO 14001 can be applied to businesses of almost any sector, type, complexity or size and provides the vital framework needed to better protect the environment and meet legal obligations.
ISO 14001 is one of the world’s most popular ISO standards and can be an extremely effective way to boost your ESG score.
- How Can ISO 14001 Certification Improve ESG Ratings?
Achieving ISO 14001 certification can be extremely beneficial for businesses in a number of ways and can provide a strong foundation for ESG activities.
Here are some of the ways that ISO 14001 can help to bring together all the elements of your business that impact the environment and take control of operations so that you can better measure and improve performance;
- ISO 14001 is a useful tool that clearly demonstrates to the public, customers and shareholders that the goods or services you provide meet environmental expectations.
- Implementing a robust EMS (environmental management system), offers an oversight of your company’s practices and policies.
- Consists of elements such as an ‘aspects and impacts’ register which can help to identify blind spots, risks and mitigations across the organisation and enable you to develop realistic, focused action plans.
- ISO 14001 provides many benefits including waste reduction, cost savings, improved resource efficiency, compliance with legislation and more success when tendering.