7 Good Reasons to Engage in Environmental Management and ESG Reporting

We at Klappir help our clients to simplify their environmental management and reflect on the performance through environmental statements and ESG reports.

The reasons more and more organisations are heading this way are manifold. Here are seven of the main gains we've witnessed from working closely with our customers.

You reduce your environmental impact

Reducing your organisation’s contribution to climate change and its overall impact on the environment should be the single most important reason to engage in environmental management. The fight against climate change is our shared responsibility and it requires all of us to work together and row in the same direction.

You lower your operational costs

Factors such as electricity and fuel usage, water consumption, waste generation and employee flights all translate into costs for your organisation. Shrewd environmental management helps you optimise these factors, not only for the betterment of the environment, but also for your budget.   

You attract investors

Investors have started to incorporate sustainability into their investment strategies. In fact, the CEO of Blackrock, the world‘s largest investment fund, stated earlier this year, in a letter to CEOs around the world, that „we are on the edge of a fundamental reshaping of finance“ due to climate risks. He stated that Blackrock would be placing sustainability at the centre of its investment approach. Diligent reporting on environmental, social and governance performance will show investors and shareholders that your organisation is committed to environmental and societal value.

You guarantee compliance with legal requirements

The number of environmental regulations that require companies to report on environmental performance has seen a dramatic increase over the past few years. Emission heavy sectors such as the maritime and aviation industries are already heavily regulated with schemes like the EU’s Monitoring, Reporting, Verification regulation and IMO’s Data collection system. Reporting requirements with more widespread application have also been surfacing. One example is The European Union’s directive on non-financial disclosure which requires listed companies, banks and other public interest companies to include non-financial statements in their annual reports from 2018 onwards. 

You have positive effect on your brand

Whether you are in the business-to-business or business-to-consumer sector, your customers are almost certainly becoming more sustainability-conscious. In fact, more and more companies have started to account for their “indirect” emissions, which includes the carbon footprint off the goods and services they purchase. By actively reducing the footprint of your organisation, and therefore of your products, you will be putting yourself at an advantage compared to your competitors in acquiring these conscious buyers. 

You attract top talent

Make your employees proud to be working for you and attract the best people in your industry. People want to work for sustainable businesses; it's been shown to improve staff spirits and well-being at the workplace.

You become part of the sustainability transformation

Luckily, this is where the business world is moving: toward more sustainability and rigorous environmental accounting. Don’t lag behind. Join early to prepare for the future.

What We Can Do for You

Our advisors have helped guide many organisations through the digitalisation of their environmental management system. We can assist you comply with environmental legislation, increase your operational efficiency and support your green branding with hard data. Our data-driven digital eco-system is about connecting players both small and large across the world so we all can better protect and manage our shared resources together, in order to protect, sustain, and regenerate our natural resources for the future.

Book a meeting with us and we can start talking about the challenges and solutions. We are passionate about what we do and would love to assist you.

Anton Birkir Sigfússon

18. maí, 2020

Anton Birkir Sigfússon