What is ESG? Why is it important? - SSC OIL CO., LTD.

What is ESG?

What is ESG?

Environment, Social, Governance: ESG is the concept of sustainable organizational development. Taking into account 3 main factors: 1. Environment 2. Society and 3. Good governance, collectively called ESG. Current business operations or investments give importance to ESG business operations in order to The business can compete in the market and has the potential for long-term business growth.

“E” Environmental

Business operations that have an impact on the environment This is because conducting business requires the use of a large amount of natural resources. Therefore, in conducting business, one must consider the impact that will occur on the environment and take responsibility for the destruction of natural resources. The impact on the environment can be assessed from environmental indicators such as greenhouse gas emissions from businesses. Generating waste within various activities within the organization Emissions Electrical energy use, etc.

“S” Social

Social issues refer to the relationship between a company and its internal and external business-related stakeholders, including employees, customers, and other stakeholders. local community Social issues are heavily involved in business operations. Because business operations must have good relationships with stakeholders for smooth operations. To build confidence and trust from customers of the business. Social indicators may be assessed by the well-being of workers. Fair compensation Giving importance to human rights principles Giving importance to labor Create equality for all groups of people, such as giving people with disabilities opportunities to work. Safety and health of employees, etc.

“G” Governance

Conducting business or operating a business according to the principles of good governance must demonstrate transparency in the operations of the business, including clearly defining related policies, such as setting anti-corruption policies and auditing to Fair benefits to all business stakeholders and policy for dividing returns Tax management Executive structure Diversity of executives and boards of directors cyber security Preventing access to central data Honest disclosure of policies and procedures Actions to reduce corruption in organizations Every step of the operation must be transparent, fair and verifiable, etc.

How important is ESG to business operations?

  1. Creating sustainability for business: Promoting sustainable business development by paying attention to the environment that is the base of operations. Including taking care of society within the organization and the communities surrounding the business. for good management
  2. Creating Value for Business : Focusing on ESG gives businesses the opportunity to create sustainable value over the long term. Investors and customers often value businesses that are socially and environmentally responsible. Sustainable business practices build trust and create a trustworthy face with customers. This gives the business a chance to succeed in the long run.
  3. Reducing risks in business operations: Reducing risks in business operations by setting policies and measures related to the environment, society, including reducing risks in legal and tax matters.
  4. Creating a marketing position: Creating a good position for your business in marketing. Investors and customers are always looking for businesses that are socially and environmentally responsible. Always consider your position when wanting to do business with a company. Focusing on ESG gives businesses the opportunity to create investment positions and opportunities.
  5. Promoting sustainable business operations: Adhering to ESG principles helps promote stable and sustainable business operations. To expand the scope of business within the country and respond to the needs of the world market Business trends that are friendly to the environment and society

 

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