How to meet international ESG requirements
Understand how to meet environmental, social and governance (ESG) requirements from global regulators, investors, banks and buyers.
As you enter new markets, you may face new regulations and disclosure requirements, especially relating to ESG.
Step 1: Understand how ESG factors apply to your business
ESG and sustainability is becoming essential for businesses worldwide, shaping how they operate and grow. Regulators, banks, investors, supply chain leaders and consumers expect businesses to take action to responsibly reduce their ESG impact and manage their risks.
What does "ESG" stand for?
Why is ESG important?
What does ESG mean for your business?
Step 2: Familiarise yourself with relevant ESG requirements
There is a growing number of global regulations designed to reduce environmental and social impacts and risks. Even if your business is not directly covered under one of these regulations (yet), it is important to be aware of them, as the same requirements trickle down and affect your ability to access value chains and finance.
If you’re a B2B company supplying to large organisations, they will likely need to collect data from their suppliers in order to comply themselves. And if you’re looking for finance, financial institutions may similarly need to collect this data from their investments.
How do ESG requirements affect products and services?
Step 3: Compile the required information
It’s all about getting an understanding of your performance and collecting data to support that.
Some can be collected easily from existing reports and invoices. Some may require further digging and requesting from suppliers, or even working with them over time to gather it.
Where do you begin?
Step 4: Access sustainable finance
While many businesses cite cost as one of their largest barriers to implementing sustainability, there is a growing number of opportunities to access capital to support these initiatives. In fact, most financial institutions now offer green or sustainable finance options specifically for small- and medium-sized businesses.
Being able to provide data on ESG practices and performance can get your business approved for this finance, often at reduced rates.
What are key sources of finance?
Step 5: Improve your ESG performance
Now that you’ve collected your data and understand your performance, it’s time to take action!
Based on the information you’ve gathered and feedback you may have received from stakeholders, you may already have an idea of any gaps where you can improve your performance. Remember, ESG progress can be made step by step, and sometimes even small changes can have a significant impact.
How can you keep your sustainability goals on track?
No matter the size of your business, every step you take toward sustainability helps your business thrive and supports a better future.
Start small and grow your impact!
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