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Is your company ESG-compliant?
The current economic paradigm has been directed towards compliance with the new global sustainability standards, and with this, companies have begun to integrate environmental, social and corporate governance criteria called ESG (Environmental, Social and Governance) into their structure, which in addition to maximizing the economic benefits of organizations since today, investors opt for those projects that consider the pillars of ESG, since they take into consideration the risks from a legal, regulatory and reputational point of view, in addition to helping to mitigate the most complex conflicts we face as a society.
The pillars that underpin ESG criteria are:
ESG Environmental Criteria:
This pillar is based on the direct or indirect effect of business activity on the environment distinguishing all business activity whose strategy encompasses both actions that mitigate polluting effects and those actions that have a vision of greater protection of biodiversity.
ESG Social Criteria:
The social factor refers to the relationship of the organization with its employees, customers, suppliers and with the surrounding community, in order to take into account the impact of the company's activities on the social environment, for example, in matters of human rights, diversity, etc.
ESG Corporate Governance Criteria
They attend to the way in which companies are managed by their management and administrative bodies, so the standards that must be considered by companies in this criterion are as diverse as the implementation of risk management systems, composition of management bodies considering aspects of professional preparation and diversity, codes of conduct, sustainability and social responsibility policies, internal audits, the ethics implemented as well as the economic transparency of the company.
The importance of ESG criteria is such that they are becoming accurate indicators of business quality and are consulted by both financial institutions and investors themselves, for the execution of responsible actions, which can have various benefits for the company, including better interest rates for the financing of its projects. which translates into more sustainable businesses in the long run.
Nowadays, generating value for a company is not only related to increasing its economic income, but also to designing strategies that respond to growing environmental needs, and have a comprehensive vision in terms of social responsibility. For this reason, it is essential to address the challenges of business sustainability, and at the same time, to have specialized advice