ESG reporting is an important commitment to sustainability and corporate responsibility, helping brands build trust and credibility with stakeholders, enhance reputation and brand value, improve risk management and resilience, and drive innovation and growth. By being transparent and accountable, a company can differentiate itself from its competitors.
“ESG reporting can identify and address potential sustainability issues and opportunities that could affect financial performance and long-term viability, while aligning strategy and operations with changing expectations of stakeholders and the market,” explains Gabriella Borda, sustainability advisor.
“Strong governance is essential for a robust ESG strategy that aligns with the company’s values, drives sustainable practices, creating long-term value for all stakeholders while showcasing the company’s commitment to responsible business practices and ethical behaviour.”
“Thus, the business can attract clients and investors who respect sustainability and social responsibility, which in turn builds trust, a crucial factor for maintaining positive relationships with customers, investors, employees, and communities,” she adds.
Borda explained how a company’s focus on ESG not only drives growth but helps its reputation which contribute to the company’s long-term success and societal impact.
“Consumers are increasingly opting for companies and products that are aligned with their personal values and who show commitment to sustainable and responsible actions. This becomes a competitive advantage as it helps them stand out, gaining them more customer loyalty.”
Both consumers and investors are increasingly valuing companies that demonstrate a commitment to sustainable and responsible actions
“Additionally, companies with strong ESG credentials not only appeal to investors and new potential employees but are better poised to attract partnerships and collaborations with like-minded organisations, governments, and NGOs.”
As the ESG landscape matures and stakeholders’ expectations evolve, trends and best practices are likely to continue evolving, as they are shaped by changing stakeholder expectations, regulatory developments, and the growing importance of ESG values to long-term sustainable business strategies.
“More businesses are taking concrete steps to identify and address human rights concerns in their operations and supply networks and there is an increased focus on encouraging inclusion, equity, and diversity in the workplace. In fact, many businesses have started looking at the threats and opportunities posed by climate change by investigating circular economy strategies to cut waste, encourage recycling, and embrace more sustainable production and consumption models,” added Borda.
Speaking about the local context, Ms Borda declares that companies are increasingly recognising the importance of embarking on their ESG journey and integrating this into their brand identity.
“While the level of ESG integration may vary among companies, there is growing awareness of the need to address ESG factors in their operations and decision-making process. Companies have the opportunity to leverage their strengths and address their specific challenges to foster sustainable growth and contribute to a greener and more responsible future for the nation.”
ESG however, remains an ongoing process that should start with manageable steps and gradually build momentum.
“Achieving responsible sourcing and ethical supply chains in island states will rely on the entire system’s cooperation.”
“In my view, committing to ESG values becomes feasible only when stakeholders within the supply chain actively provide relevant information and prioritise sustainable practices, while continuing their process of building resilience.”
“Embracing this as a gradual and learning process is crucial, and collaboration among all involved parties will be key to any foreseeable success.”