Wondering what ESG is and why it’s crucial for your business?

Here’s a quick dive into everything you need to know...

ESG Explained:

• Environmental, Social, and Governance (ESG) is a framework for evaluating the sustainability and ethical impact of a business.
• Goes beyond traditional financial metrics to assess a company's societal impact and long-term viability.

The Three Dimensions of ESG:

> Focuses on a company’s impact on the planet — from energy use and emissions to waste management and biodiversity.

> Companies with strong environmental practices have clear strategies to minimize their ecological footprint.



> Assesses how a company manages relationships with employees, suppliers, customers, and communities.

> Includes labour practices, diversity, human rights, and community engagement.



> Covers internal practices and controls, like board diversity, executive pay, and ethical business practices.

> Strong governance builds trust and aligns management and stakeholder interests.

Why ESG Is Essential?

• Risk Management: Identifies potential risks that could affect financial performance and reputation.
• Value Creation: Companies with strong ESG practices often see better performance, lower costs, and higher profitability.
• Investor Demand: Growing interest in sustainable investments driven by awareness of climate and social issues.
• Regulatory Compliance: Adhering to ESG standards helps meet regulatory requirements and avoid penalties.
• Reputation and Trust: Prioritizing ESG can enhance stakeholder trust, including customers, employees, and investors.

Who Must Comply with ESG Regulations?

• Global Reach: ESG regulations vary across countries but non-compliance can lead to fines and reputational damage.
• UK Focus: No single ESG law, but large companies must disclose sustainability elements, like energy usage and carbon emissions.
• EU Scope: Requires all large and listed companies (except micro-enterprises) to disclose risks, opportunities, and impacts related to social and environmental issues.

How to Disclose ESG Metrics?

• ESG metrics are disclosed through annual reports using frameworks like the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB).
• These frameworks help companies prioritize ESG issues and structure disclosures effectively.

BOTTOM LINE...: ESG isn’t just a trend—it’s a critical framework for driving sustainable and ethical business practices.

Start incorporating ESG principles today to stay ahead.

Would you like to know more?

Our energy specialists can assist you in meeting the deadlines and fully realising the advantages of adhering to compliance.

Feel free to contact us at hello@bramoenergy.com.