Evaluation of the effectiveness of your work in the ESG area, calls for adoption of a comprehensive approach that incorporates both quantitative and qualitative methods.
Select the indicators that are most relevant to your organization and industry.
For example:
➢ Environmental: carbon footprint, energy and water consumption, waste management.
➢ Social: labor conditions, diversity and inclusion, contribution to local communities.
➢ Corporate management: transparency, compliance, ethical conduct.
Collect data on each of the selected KPIs over a period of time. Use reliable data sources and measurement methods.
Compare the data with the baseline values and the goals you have set. Assess how close you are to achieving your goals.
Compare your results with those of similar companies in your industry. This will help you understand how you compare to your competitors.
Conduct surveys and interviews with the parties concerned (employees, customers, investors, local communities) to obtain feedback on your initiatives and their perceptions.
Publish regular reports on ESG progress. Use international reporting standards such as GRI (Global Reporting Initiative), SASB (Sustainability Accounting Standards Board), or TCFD (Task Force on Climate-related Financial Disclosures).
Conduct an independent audit of your data and reports. This will enhance the confidence of the parties concerned in your ESG activities.
Analyze results and identify areas for improvement. Adjust your strategy and action plans based on data and feedback.
An effective ESG evaluation requires continuous monitoring and adaptation of your strategy based on the analysis and feedback. It is important to take into account that the methodologies of global and national rating agencies are not standardized, which can result in significant disparities in the evaluations they produce. Moreover, the global market lacks a unified system for assessing companies’ achievements in the area of ESG and sustainability, as well as universally recognized standards.
ESGSCORING.KZ allows for a preliminary evaluation and integrates the key ESG factors used by numerous rating agencies. This makes it a fairly versatile tool for evaluating a company’s ESG and sustainability performance.
