Today, many organizations still view ESG (Environmental, Social, and Governance) as a casual trend, but it is becoming increasingly apparent that this is simply not true. As the call for climate action gets louder, businesses will find themselves under scrutiny to demonstrate their contributions to the fight beyond marketing appeals. With 77% of today’s investors projected to analyze climate change’s potential impacts on a business’s ability to provide its products and services, businesses need to be ready. As you consider how climate change will impact your business and its ability to remain profitable, automated utility data can help support the environmental aspect of your ESG reporting, allowing for quicker insight and compliance.
ESG in the mainstream
From reporting to investment to customer expectations, ESG has now infiltrated all aspects of business operations. Both governments and stakeholders are calling for businesses to be more intentional with their climate action efforts and disclose their carbon footprint and efforts to offset it. Climate action 100+, an investor-led initiative, has worked to ensure that some of the world’s largest corporate greenhouse gas meters are reducing their impact. The 617-member committee manages over $65 trillion in assets and actively works to implement a strong governance framework, take action in reducing greenhouse gas emissions, and enhance corporate disclosure. With several decades of evidence highlighting the need for climate change, climate action is becoming a major concern for investors as it affects business resilience and continuity.
Just last year, 90% of investors admitted to paying more attention to a company’s ESG performance when making investment decisions. With communities seeing the impact of climate change and 77% of investors stepping up their analysis of physical risks, businesses need to be prepared to satisfy both investors and consumers.
_“It is vital for financial institutions to understand that addressing stranding risks and other financial risks and opportunities of climate change is not a one-off process. It needs to become a permanent part of everyday decision-making.”
_— EY’s report, Climate change: The investment perspective
As your business establishes a process for fighting climate change, it is important to understand that many investors are still concerned about the quality and transparency of ESG reporting on the part of the companies they consider. That is why reliable utility data, like the kind that Arcadia provides, is vital.
Understand your investors
The concerns around sustainability from investors are nothing new. However, recently these investors have been translating their words into action. According to Cyrus Taraporevala, president and CEO of State Street Global Advisors,“[Investors] seek to analyze material issues such as climate risk…in terms of how they impact financial value in a positive or a negative way. That’s the integrative approach we are increasingly taking for all of our investments.” With many firms now integrating sustainability into their investing criteria, corporate leaders will soon be held accountable for ESG performance — if they aren’t already.
Explore the latest in environmental reporting in our white paper, "ESG 101: The what, who, why, and how of ESG"Download now
Utility data supporting business resilience in the face of climate change
Business resilience starts with readiness. By responding proactively to the call for climate action, your business can create value for your clients and your investors. If you want to give your business a competitive advantage, utilizing utility data in the face of climate change is a great way to start. As your business works to reduce systemic financial risks and make lasting contributions to your communities, a sustainable ESG reporting process is important.
Utility Cloud, an Urjanet product now powered by Arcadia, is here to provide the insight needed to get a better understanding of your company’s carbon footprint. With our product, you can increase efficiency and get the support you need as you start your climate action journey to net zero. To learn more, visit https://urjanet.com/utilitycloud or get in touch at firstname.lastname@example.org.