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As ESG reporting becomes standard practice, many companies are learning to see its benefits. Rather than focusing solely on compliance, businesses can use ESG to drive operational improvements, making their processes more efficient and sustainable.
Dr Michelle de Jongh suggests that businesses start with simple actions like improving energy efficiency in buildings or machinery, which not only reduces costs but also benefits the environment. Supply chain efficiency is another area to consider, ensuring that engagement with suppliers aligns with a company’s sustainability goals.
However, implementing and reporting on ESG can be challenging, particularly for SMEs, as it requires significant expertise in climate change, sustainability and governance. Dr Michelle de Jongh recommends businesses plan their ESG investments strategically by setting aside budgets for the next five years to meet future decarbonisation requirements. By doing so, they can avoid costly delays and build the internal expertise needed to stay ahead of environmental regulations, especially as the UK’s 2030 carbon emissions target approaches.
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