CORPORATE TRAINING AND DEVELOPMENT FOR SMES - PART ONE
– Ark Kasa Global Insights

In recent years, the terms Sustainability and ESG has gained a lot of traction especially in the business sector. The Acronym which means Environmental, Social and Governance, a term coined by the United Nations Global Compact in 2004, is described as a set of practices (policies, procedures, metrics, etc.) that organizations implement to limit negative impacts and enhance positive impacts on the environment, society and governance bodies.

Sustainability on the other hand is defined by the UN World Brundtland Commission on Environment and Development as ‘meeting the needs of present generations without compromising the ability of future generations to meet their own needs’. ESG is therefore considered a subset of sustainability.

Sustainability and ESG (environmental, social and governance) are necessary initiatives that have become essential in business functions.  Whereas these concepts are used hand in hand, these two business frameworks operate differently. There is a high demand by Stakeholders and Investors for it in modern day business.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

ESG is a measured assessment of sustainability using benchmarks and metrics to assess a company's environmental, social, and governance impact.  Analysis from these metrics provide stakeholders and investors with a framework to take key decisions as well as assess a company's corporate governance practices and its impact on society and the environment.

Environmental: The environmental component includes factors such as greenhouse gas emissions, energy efficiency, waste management, and water conservation.

Social:   The social component considers how you interact with your employees and community such as human rights, employee diversity, labour standards, and supply chain management.

Governance: The governance component of ESG considers how your business is run and ensures it acts in the best interest of your stakeholders. This includes board diversity, compensation, risk management and ethics.

SUSTAINABILITY

In contrast, Sustainability is the practice of operating a business in a way that meets the economic, social and environmental needs of the present without compromising the ability of future generations to meet their own needs. Sustainability conveys the essence of capacity whiles focusing on the three key factors -  environmental, social, and economic.

Environmental sustainability focuses on reducing or eliminating negative impacts on the environment by minimising greenhouse gas (GHG) emissions, reducing waste and pollution, and conserving natural resources.

The social aspect focuses on promoting social equity, diversity, and inclusion by ensuring fair and safe labour practices that prioritise health and safety, human rights, and community involvement.

Finally the economic aspect of sustainability focuses on maintaining long-term profitability, creating economic value, and ensuring responsible resource allocation.

In summary, the main distinction between ESG and sustainability is that ESG is a specific tool used to measure the performance of a company, while sustainability is a broad principle that encompasses a range of responsible business practices.

HOW ARK KASA GLOBAL DRIVES ESG AND SUSTAINABILITY

Recently, as the importance of the ESG criteria is becoming prime in business functions, many organizations and institutions are integrating ESG into their operations and business strategies.

ARK KASA GLOBAL is no exception as our core business functions and business solutions are carefully tailored to take into consideration ESG and Sustainability especially for small and medium-sized enterprises (SMEs). We understand and recognise the correlations between ESG, sustainability, performance and organizational growth.

With the surge of ESG rating agencies, assigning ESG scores to companies and businesses is fast growing. New and current reporting frameworks convey company ESG information and this is fast becoming a standard requirement for investors and stakeholders.

At ARK KASA GLOBAL, our tailored business solutions incorporate ESC and Sustainability as they improve financial performance, enhance reputation and branding, and reduce the risk of regulatory non-compliance.

ARK KASA… THINK DIFFERENT!!!

More Insights from Ark Kasa Global Limited