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Home Articles

ESG encompasses both operational performance and impact

ESG is becoming the new age CSR. Companies are adopting the concept of ESG. This article discusses ESG conduct.

India CSR by India CSR
August 24, 2022
in Articles, Sustainability
Reading Time: 3 mins read
ESG encompasses both operational performance and impact

ESG encompasses both operational performance and impact

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A Business should know it can’t do this alone but believe it can do it together.


By Rusen Kumar

Yesterday an Indian advisory company announced a framework for Environmental, Social and Governance for Real Estate Operations (ESGRO). It is expected that the framework will help in enabling real estate operations (Integrated Facilities Management) in accordance with the United Nations Sustainable Development Goals (SDGs). Through this framework, a private firm will help its clients pursue their ESG goals with a strategic approach and tend to the operational aspects of real estate management. The framework addresses environmental performance and climate change with a prioritised focus on water stewardship, energy management, and waste management.

Creating an ESG framework for a particular sector is a good initiative. Let’s take a look at the latest international scenario at ESG.

Corporate social responsibility (CSR) as a nice-to-have is a relic of yesterday. Today, driving innovation through ESG – Environmental, Social and Governance is a crucial competitive advantage for companies around the globe.

This is especially true as a business navigates complex, interconnected and global issues such as climate change, inequity and cybersecurity, which call for business leaders across industries to be engaged. ESG is now being accepted by more companies. For many businesses, ESG objectives are considered in the compensation determination process in objective setting, responsible funding, performance evaluation and compensation decisions.

Businesses that proactively commit to ESG outcomes are taking critical steps to future-proof their strategies. Which leads to attracting and retaining top talent and increasing value for customers and other stakeholders. Like any successful strategy, any ESG efforts are aligned to a framework that clearly outlines the journey and develops a consistent measurement of progress. This framework is a business 2030 Agenda. Many companies have prepared the ESG agenda for the year 2030.

The 2030 Agenda is a cross-functional, company-wide plan, from senior leadership to company people worldwide. At a company, ESG encompasses both operational performance and impact, which allows a company to co-innovate with customers and partners and to inspire all stakeholders by moving from aspiration to action. Businesses recognize that they have a long way to go to realize their vision to build a more sustainable, equitable and secure future for all.

Also Read: ESG framework for Real Estate operations

ESG is at the heart of everything a business does. Every product they engineer, every customer they support and every employee they empower is an opportunity to help build a more sustainable, equitable and secure future. A Business ESG strategy is formalized into what a business calls its 2030 Agenda, made up of company goals that align to outcomes of sustainability, equity and trust.

Collectively, business is a call to action to decarbonize digital infrastructures, increase equitable access to opportunities through distributed workforce technology and earn trust with enhanced security and transparency.

To achieve goals within the 2030 Agenda, Businesses will need to co-innovate with employees, customers, partners and broader communities. This requires tapping into a culture of ingenuity and values—execution, passion, integrity, customers and community—to operationalize ESG across the business. A Business should know it can’t do this alone but believe it can do it together.

Tackling climate change is urgent, which is why a business should take action to address climate impact today, ensuring businesses are carbon neutral – continue on the path to net zero. To achieve the business net-zero goal, businesses need to both reduce emissions in line with what science tells us is needed and offset any emissions that remain through carbon projects.

About the Author

Rusen Kumar at India CSR
Rusen Kumar

Rusen Kumar, Founder and Editor, India CSR; regularly writes on Corporate Social Responsibility, Sustainability and ESG.

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Source: India CSR I August 24, 2022
Tags: ESG in IndiaRusen KumarSustainability

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India CSR

India CSR

India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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