Cork, Ireland, 15.04.2023 – The latest regulatory trends outlook in ESG released by Compliance & Risks focuses on how ESG Compliance brings increased credibility and competitive advantage to organisations.
In today’s business landscape, it’s no longer enough for companies to simply claim that they prioritise environmental, social, and governance (ESG) considerations. Stakeholders, from investors to customers to employees, and the media are scrutinising these claims and demanding to know how ESG-conscious a company truly is.
And being ESG regulatory compliant offers several important benefits, such as:
Increased Brand Reputation: Trust and transparency with stakeholders. Complying with ESG regulations demonstrates a company’s commitment to sustainability and responsible business practices.
Improved Risk Management: ESG regulations often require companies to identify and manage environmental, social, and governance risks. By doing so, companies can reduce the likelihood of negative impacts, such as legal or reputational damage.
Access to ESG Capital/Attract ESG Investors: Investors are increasingly looking for companies that prioritise ESG considerations. By complying with ESG regulations, companies can attract investors and access capital.
Competitive Advantage: Companies that prioritise ESG considerations and comply with regulations may have a competitive advantage over those that do not. This can lead to increased market share, improved brand reputation, and increased customer loyalty.
Stay on top of changing ESG Regulatory Requirements
“The demand for transparency is fueled by the global trend towards mandatory ESG reporting, with legislation emerging everywhere. This push for mandatory reporting is driven by concerns around the quality, reliability, comprehensiveness, and comparability of sustainability information being reported,” commented Trish Butler, Chief Marketing Officer and continues, “The hope is that this increased transparency will enable more informed decision-making and direct financing towards greener and more sustainable investments.”
Sustainable products take centre stage
It’s crucial for companies to not only embrace ESG considerations but to also demonstrate their commitment through robust reporting and transparency measures. By doing so, companies can build trust with stakeholders and position themselves for long-term success in a world where ESG considerations are becoming increasingly important.
The importance of protecting our environment has never been more apparent than it is today. Regulators worldwide are responding to this urgency by enacting measures aimed at reducing the environmental impact of products.
While these regulations are certainly necessary, they are likely to create additional compliance burdens for businesses. As noted by the EU Commission, products consume significant amounts of materials, energy, and resources and have far-reaching environmental impacts throughout their lifecycle, from raw material extraction to end-of-life disposal. In fact, primary raw material extraction and processing are responsible for half of global greenhouse gas emissions and 90% of biodiversity loss.
“Organizations must take a proactive approach to minimize their environmental impact and comply with relevant regulations. By doing so, they can not only protect the environment but also demonstrate their sustainability commitments to customers, investors, and regulators.” commented Chief Marketing Officer Trish Butler.
For more information, visit the A 12-18 month outlook for regulatory trends in ESG
Media Enquiries:
Trish Butler
CMO, Compliance & Risks
Email: t.butler@complianceandrisks.com
