We gradually see more countries imposing disclosure terms on a company’s environmental and sustainability performance. Authentic performance is of great importance to be the leader in your working industry. People who want to be the first in the world could lead by an invention, innovation, and creativity developed for products or services. It also could be the first move to enhance environmental practice through legislation. New Zealand makes climate reporting compulsory. In Hong Kong, a revised ESG Reporting Guide (“Guide”) has been launched by the Stock Exchange of Hong Kong Limited, effective from 1 July 2020. Companies will need to extend their techniques to respond to the latest reporting challenges, such as how, when, and what they need to report. It is a move addressing the growing concern of climate change issues. An outstanding leader can act as a driving force to encourage good things to happen. ESG disclosure becomes a key factor for forward-looking companies and investor decisions.
The government policies issued worldwide have demonstrated the growing demand in disclosing decision-useful data. For industries, the environmental data has a significant advantage for national climate programs and economic instruments such as carbon taxes and emissions trading. Energy supplies and engird intensive companies are regularly criticised for their emission performance. Quantitative data is of great value in both sustainability factors and economic administration. Here below are few examples of climate-related data disclosures that increasingly common in reporting provisions since the 2000s (Carrots & Sticks Report, 2020):
- Mandatory GHG Accounting System (2005), issued by Ministry of Environment, Japan
- Green Posting System (GHG emissions and energy use) (2012), issued by Financial Services Commission, South Korea
- GHG Monitoring Regulation (2014), issued by Ministry of Environment and Urbanization, Turkey
- Circular No. 52 Law N 20.780 / Carbon Tax (2014), issued by Ministries of Finance and Environment, Chile
- Energy Transition Law (institutional investors, banks, and listed companies to report on climate risks, 2015), issued by the Ministry of Environment, France
- National GHG Emission Reporting Regulations (2017), issued by the Department of Environmental Affairs, South Africa
Besides the regulation and economic factors, communication between the companies and the stakeholders is a task that can never miss. This is the communication strategy to inform your investors, potential investors, and stakeholders about how you perform. The long-standing impression and reputation matter to the investors and potential investors when they are in a maze among investment options. It is also about community relations, which you find your operation area is at. Without utilising the diverse communication channel, the company could find it hard to engage stakeholders, investors, and potential investors thoroughly. Through various ways, the stakeholder engagement channels by annual reporting, periodic reports, investor briefs, newsletters, press releases, and web announcements and engagement events.
We are coming into the digital age, effective and efficient communications are the great interest the data and format would be delivered to stakeholders reliably, comparably, and timely. How to operate the communications for ESG (Environmental, Social, Governance)? Here below are some tips for you:
- Green publishing – eco-friendly paper type and ink, graphic design optimisation, summary factsheet, sustainable packaging, and logistic methods.
- Digital engagement – mini-games through social media and web, Whatsapp stickers, web accessibility, and interactive PDF, video production, e-form, animated CSR report,
- Events and activities – staff awareness program,
- Gifts and premium – green lifestyle items
- Awards and recognition – standard achievement
ESG is more than data reporting. The reporting is a communication tool to engage stakeholders, inform stakeholders of the company performance. Beyond reporting, the company has to have actual action on the ESG attainment. If not, there will be no meaningful data to complete the ESG reporting. A consultancy service would benefit the company to comprehend the environmental status achieved more than a reporting scheme. A trustful consultancy service comprises a project manager, coordinator, and marketer in charge of planning, executing, controlling the timeline, being the focal point of communications, and engaging stakeholders by an integrated approach. From strategic advisory, gap analysis, and content analysis to raw data conversion into KPI by ESG Dashboard, these are decisive steps to guarantee ESG attainment’s excellence.
By: ANewR Consulting Limited, a digital environmental consultant headquartered in Hong Kong since 2008. Our expertise has grown into the context of air and water qualities, noise, green building, waste management, and remediation. With extensive know-how in environmental planning and assessment, feasibility study and policy review, ecological design, monitoring, and audit (EM&A), ANewR has matured to be a leading management consultancy. Standing in the digital transformation reign, ANewR has participated in various environmental digital projects – interactive 3D visualisation, immersive automation virtual environment, Virtual reality, automation system, and monitoring platforms.
(Website: https://anewr.com, LinkedIn: ANewR Consulting Group, Twitter: ANewR – Everyday Newer, YouTube: https://www.youtube.com/channel/UCnpvmxnR9hbNxytSfBdfV8Q/videos)