Focusing on ESG Indices to improve enterprise competitiveness
Businesses are putting more emphasis on sustainability and environmental issues in order to gain trust from customers and draw in potental investors. In this article, let’s learn about ESG – a set of standards to assess the performance of businesses in relation to issues of environment, society and governance.
What is ESG?
ESG stands for Environmental, Social and Governance, which is a framework to assess an organization’s business practices and performance on various sustainability and ethical issues.
- Environmental factors involve considerations of an organization’s overall impact on the environment, how measures are taken to protect natural resources, and the potential risks and opportunities the organization will face due to environmental issues (such as climate change). Examples of environmental factors that can be ESG criteria include the following: Waste management, greenhouse gas emissions reduction, clean energy consumption, etc.
- Social factors address how organizations implement policies and practices related to human rights, labor management, and fair treatment of customers, partners and the community. The criteria used include these examples: Fair pay for employees, Employee experience and engagement, Health and safety at work, Customer satisfaction levels, etc.
- Governance factors examine how a company polices itself, focusing on internal controls and practices to maintain compliance with regulations, ensure transparency and ethics in business. Examples in this criterion include corporate leadership and management, board composition, financial transparency and business integrity, etc.
ESG is seen as a comprehensive approach to investing and business, trying to ensure that business operations benefit all stakeholders, not only the owners and shareholders of the company, but also including the environment, community, employees and customers.
Why does ESG investing matter?
In many cases, customer behavior has changed to focus on more sustainable practices. People are becoming more conscious of recycling, reducing their waste, and favoring purchasing goods from companies that take social and environmental responsibility seriously.
ESG factors are also used by investors to assess businesses and guide the creation of their investment strategies. Due to lower costs, reduced business risks and new marketing opportunities, businesses with high ESG scores often outperform their competitors over the long term, which may enable them to succeed in the market.
Utilizing solar energy can help businesses increase their ESG
In Vietnam, many businesses have deployed to use solar power to meet Environmental criteria. This implementation has brought many benefits, including cost savings, reduced carbon emissions and reflected a strong commitment to a sustainable future and attracting like-minded investors.
With our rooftop solar solutions, VSSES feels honored to bring businesses closer to green energy, which in turn helps them minimize the negative impact on the environment and gain a competitive advantage in the marketplace. Our PPA solution is a tailor-made plan which offers business owners the power to:
- Earn a favorable discount off the prevailing retail tariff to benefit from savings on monthly electricity bills.
- Decide a tailor-made PPA tenure to suit your business conditions.
- Own the solar energy system without a capital investment at the end of the PPA contract term.
Contact VSSES now to enjoy clean energy with zero upfront investment