CHRONICLE COLUMN | ESG | 21 MARCH 2023
Toowoomba Chamber is gathering information to help keep members informed about ESG (environment, social and governance) and what it all means for business.
Why?
The Albanese Government have been very clear about their strong commitment to Australia’s aspirational Net Zero emissions target by 2050. We believe ESG will be a critical element to meeting these targets.
The mantra is all about helping us (governments, industry, and households) transition to a new way of living to achieve these targets. This is not a local phenomenon. The whole world is involved, acting, and making a difference. And, we believe, it’s here to stay.
Let’s talk ESG.
What is it and why do you need an ESG Strategy?
ESG is an acronym for “environmental, social and governance”. It is a framework for conscious consumerism. Through an ESG Strategy businesses can define and measure their impact on the environment and on society while remaining transparent about governing practices. ESG is customer-driven, economically driven and environmentally driven and it is gaining immense popularity around the world. The global goal is that ESG will soon be part of regular business planning as the world transitions to Net Zero.
Why? Socially conscious stakeholders – including employees, board members, customers, regulators, suppliers, and distributors – demand to know a company’s stance on socioeconomic factors and its sustainability efforts before investing in, buying from, or working with the company. If you’re not part of the solution, your customers will support someone who is.
So, your ESG Strategy should outline your environmental sustainability policies providing measurable data on energy consumption and improved efficiency, responsible procurement as well as waste management (including recycling) and so on. It will also incorporate your employment strategies such as diversity in the workplace and how you support your local community. How you govern your business also needs to be open to scrutiny.
ESG clearly defines those methods and measures the impact of environmental, social, and governance efforts. I suspect ESG which includes specific criteria businesses must meet will be a core consideration not just for our current consumer-driven preferences, but for government grants and many overseas countries that will be receiving our valuable products and services.
What is certain is that we’ll be hearing a lot more about it in the coming months and years. In fact, since the change of government, things are moving swiftly with a whole raft of new resources and grants rolling out over the coming months.
We’re finding out about grants, conferences, websites, consultants, workshops, and so on.
Why?
We want to help all businesses make what looks like the inevitable transition as fair and uncomplicated as possible.
Want to be better informed? Let us know and we can put you in contact with local leaders working in this field. And watch out for Toowoomba Chamber-supported workshops to help you understand and meet new requirements.
