ESG stands for Environmental, Social and Governance. Together, these three pillars describe how responsibly a company operates, and more and more stakeholders want to see the figures behind them.
The three pillars of ESG
- Environmental: your energy use, CO2 emissions, waste and use of raw materials.
- Social: how you treat your employees, safety at work, training and diversity.
- Governance: how your company is managed, including policies, ethics and transparency.
Why SMEs can no longer ignore ESG
Large companies have to report on their sustainability, and that includes their supply chain. As a result, they ask their suppliers for ESG information. Banks do the same when you apply for financing, and more and more tenders include sustainability criteria.
“Thinking that ESG is just a report is a mistake. It is primarily a management tool to lower costs and risks.”
ESG as an opportunity, not a burden
Mapping your energy use and emissions quickly shows where you are losing money. Many SMEs discover savings on energy, transport or raw materials as soon as they have a clear overview. A good ESG file also strengthens your position with customers and investors.
How to get started
Start small and use a recognised standard. The European VSME standard was created specifically for SMEs and sets out which data you can reasonably be asked for. With ESG Now you answer simple questions, upload your documents and our AI assistant calculates your emissions. The result is a clear PDF report you can share straight away.
