- Evaluation of Sustainability Practices
Review current sustainability initiatives to identify strengths and areas needing improvement, ensuring a comprehensive understanding of the present state.
- The selection of a suitable framework
Select the ESG report framework that is aligned with the goals of your business as well as industry standards like GRI, SASB, or TCFD to ensure that the framework is consistent and relevant.
- Defining Clear Goals
Create precise, quantifiable, realistic, relevant, and deadline-bound (SMART) targets for ESG reporting. This will aid the process and monitor the effectiveness of progress.
- Data Collection
Collect accurate and pertinent data from the social, environmental, and governance sectors. Ensure the data integrity is maintained by installing a robust system for managing data.
- Participation of Stakeholders
Include important stakeholders, customers, employees, investors, and members of the community to participate in the ESG reporting process to ensure comprehensive and meaningful disclosures.
- Regular Publication and Accessibility
Publish ESG reports regularly and make them easily accessible to all stakeholders. This transparency builds trust and demonstrates ongoing commitment to sustainability.
What is
ESG reporting
ESG reporting includes a framework for organizations to display their environmental, social, and governance practices along with their impacts and influence. The reporting aims to levy transparency on how an organization manages various ESG risks as well as opportunities, to allow stakeholders like employees, customers, and investors to understand the company's commitment to ethical and sustainable practices.
ESG frameworks thus give a structured blueprint ensuring consistency and coherence in the sustainability landscape. ESG reporting functions as a conduit for companies to communicate their progress to potential investors and ensure that their initiatives can yield credible and actionable results.
Why is ESG reporting important for organizations?
Enhanced Transparency and Trust
ESG reporting provides detailed insights into a company's sustainability initiatives and operational impacts. Transparency builds trust with stakeholders and demonstrates accountability.
Attracting Investors
Currently, investors consider ESG factors highly before making investment decisions. Companies providing comprehensive ESG reports attract and retain investors with more probability.
Consumer Loyalty
Consumers remain inclined to support brands that are committed to sustainability and ethical practices. ESG reporting strengthens brand loyalty by highlighting the organizational dedication towards positive social and environmental impact.
Regulatory Compliance
The ascend of regulatory prerequisites makes ESG reporting quite mandatory in various jurisdictions. Companies should stay compliant with necessary regulations, to avoid legal penalties and maintain their operational license.
Innovation Drive
Proper focus on ESG factors helps in driving innovation within any organization. Addressing sustainability challenges makes companies develop services, new products, and also business models as per the evolving societal requirements.
Goal Setting and Tracking
ESG reporting sets and tracks sustainability goals. It helps companies in measuring their data-driven decisions and progress, for consequent improvement of ESG performance with time.
Risk Mitigation
It also assists in risk mitigation related to “ESG” issues. Proactive management of the risks helps companies safeguard their reputation.
Types of ESG Reporting Frameworks
TCFD- Task Force on Climate-Related Financial Disclosures
Following the establishment in 2015 by the Financial Stability Board, TCFD forms recommendations for disclosing financial risks related to the climate. It is integrated with the IFRS Sustainability Reporting Standards as per ISSB or International Sustainability Standards Board.
SASB- Sustainability Accounting Standards Board
SASB gives ESG reporting standards that are industry-specific through 77 metrics. It also offers a web tool called the Materiality Finder Tool for the identification of relevant issues based on ESG.
CDP- Carbon Disclosure Project
CDP is a not-for-profit organization studying the relationship between climate and environmental impacts, and the fiduciary responsibility for publicly-traded, large companies. Founded in 2000, CDP assists companies in disclosing carbon emissions data using questionnaires on water security, forests, and climate change.
UNGC- United Nations Global Compact
The UNGC is a voluntary initiative that promotes ten principles concerning labor, human rights, anti-corruption, and the environment, which supports different sustainable practices and developmental objectives in business.
IIRC- International Integrated Reporting Council
Founded in 2010, IIRC advocates integrated reporting and links ESG factors with financial performance. This helps in the provision of a holistic understanding and comprehensive outlook for value creation.
SBTi- Science-Based Targets Initiative
SBTi operating in the private sector motivates organizations to utilize science-based targets setting a 5-stage process. The targets need to be appropriate scientifically as per certain criteria for meeting the objectives of the Paris Agreement. Organizations of all industries and sizes can join as pathways specific to sectors remain developed.
PRI- UN Principles for Responsible Investment
This is supported by the UN to consider a network of investors worldwide, to whom they can provide support through consideration of investment implications related to ESG factors. The body operates independently in the interest of its investors, their financial markets and economies, as well as the environment and society as a whole.
ESG reporting standards
These standards remain characterized by particular directives guiding companies in articulating their ESG initiatives. It sets them apart from the broad principles that are offered by frameworks.
Is ESG Reporting
Mandatory?
While ESG reporting is not found to be uniformly mandatory across Asia, nations like China and Japan increasingly encourage or require companies to disclose ESG-based information.
ESG reporting is deemed mandatory for large organizations under the CSRD, requiring extensive disclosures on sustainability performance.
In the USA, the SEC works on rules and regulations requiring public companies to disclose climate-based risks and opportunities, signaling a move for mandatory reporting of ESG.
Which global companies have
the best ESG report?
Known for its transparent reporting and comprehensive, outlined sustainability ventures and programs.
Praised for its detailed disclosures on social and environmental responsibility.
Recognized for its commitment to extensive ESG initiatives and carbon neutrality.
Commended for its robust ESG reporting and environmental activism.
What are the ESG Reporting
Requirements?
Global Regulations and Standards
European Union (EU): The Non-Financial Reporting Directive of the EU requires large public-interest corporations to report non-financial data, including ESG information. The forthcoming Corporate Sustainability Reporting Directive will extend the requirements to include more companies.
United States: While ESG reporting is largely voluntary, the Securities and Exchange Commission (SEC) has proposed enhanced disclosure requirements for climate-related risks.
United Kingdom (UK): The UK requires large companies to disclose their energy use and carbon emissions under the Streamlined Energy and Carbon Reporting (SECR) framework.
Industry-Specific Requirements
Financial Sector: Financial institutions typically adhere to the guidelines that are issued by the Task Force on Climate-related Financial Disclosures (TCFD).
Energy Sector: Companies operating in the energy industry can adhere to Carbon Disclosure Project (CDP) standards and guidelines for specific industries.
Key Elements of ESG Reporting Requirements
Environmental: Information regarding greenhouse gas emissions, electricity usage and waste management, the consumption of water, and impacts on biodiversity.
Social: Information about labor practices, human rights community participation, diversity and Inclusion, and the safety and security of our communities.
Governance: Details regarding the composition of the board as well as executive compensations, anti-corruption policies, as well as rights of shareholders.
Here is How You Can Initiate
Your ESG Reporting Today
Decarbonisation and
ESG Reporting
Decarbonization is the reduction of carbon dioxide emissions that result from human activities with the ultimate aim of achieving a low-carbon economy. It is an essential part of a global effort to combat climate change and encourage sustainable development.
The Role of ESG Reporting in Decarbonization
ESG (Environmental, Social, and Governance) reporting plays a pivotal role in decarbonisation by:
Monitoring emissions : ESG reports provide detailed reports of an organization's carbon footprint. They allow the tracking and measurement of emissions from greenhouse gases (GHG) carbon emissions.
Setting Targets: Businesses utilize ESG reporting to define and communicate their targets for decarbonization, for example, achieving net-zero emissions in a particular year.
Transparency: ESG reports ensures transparency, allowing stakeholders to understand the company's impact on the environment and its commitment to reducing carbon emissions.
Accountability: Using periodic ESG reports, businesses can be accountable for their carbon reduction efforts and progress.
Decarbonization Strategies Highlighted in ESG Reports
Energy Efficiency: Using energy-efficient techniques and methods to reduce the consumption of energy and carbon emissions.
Sustainable Supply Chains: Engaging suppliers who are committed to cutting their carbon footprint while adopting sustainable methods.
Renewable Energy: Moving to renewable energy sources such as wind, solar, and hydropower.
Innovation: Levying investments in leading-edge technologies that encourage the reduction of carbon emissions and sustainable development
Why Choose Us for ESG Reporting
Earthood is a trusted leader in carbon offset audits and ESG reporting.
Comprehensive Services
- Carbon Footprint Analysis
- Sustainability Strategy Development
- Compliance and Standards
- Stakeholder Engagement
- Customized Solutions
Tailored ESG reporting services to meet your specific needs and goals.
- Proven Track Record
Successful ESG enhancement and compliance for numerous organizations.
- Client-Centric Approach
Prioritizing clear communication, timely delivery, and continuous support.
- Cutting-Edge Tools and Methodologies
Using the latest tools for accurate and reliable ESG reports.
- Trusted by Leading Companies
Partnered with top companies to drive sustainability and excellence.
Our Seal of Excellence
Accreditations
Registries/Programs/Empanelment
Registries/Programs/Empanelment
Registries/Programs/Empanelment
What they Say
We extend our heartfelt thanks to M/s Earthood for guiding us through the initial stages of our sustainability journey. Their experienced team provided invaluable support, from developing our roadmap and conducting carbon inventory assessments to assessing feasibility for renewable energy. Additionally, they offered extensive training and upskilling on these critical subjects.
Once again, our sincere gratitude to the Earthood team.
LUMINOUS
What they Say
Our experience working with the Earthood team on our first Global GHG accounting project was truly enriching. They adeptly guided all stakeholders through a tight timeline and provided actionable strategies and recommendations, ensuring the success of the exercise.
Space Matrix Design
What they Say
Earthood has been an exceptional partner for VAXA, providing unparalleled technical expertise. Their deep knowledge and proficiency in their field have been evident in every project we’ve worked on. Earthood’s team consistently delivers detailed, accurate, and insightful reports, showcasing their mastery of complex technical concepts. Earthood is an invaluable asset to any organization seeking top-tier technical expertise.
VAXA
What they Say
Working with Earthood has been great for UpEnergy in our mission to fight energy poverty and deliver equitable decarbonization. With multiple pan-Africa projects underway, they excel at keeping to a tight schedule through careful planning and reliability which is critical to us.
Up Energy Group
What they Say
Earthood's speed in delivering their services is truly impressive. From the initial review to the final report, they consistently demonstrate a remarkable ability to meet tight deadlines without compromising on quality. Their efficient and timely approach ensures that we can rely on them to get things done quickly. Highly recommended!
CO2 Balance
What they Say
We are thoroughly impressed with Earthood's diligent approach to audits and their exceptional responsiveness. Their team conducts thorough and meticulous audits, ensuring accuracy and reliability in every report. They have consistently demonstrated a high level of professionalism and commitment to delivering timely and precise results. Earthood is a trusted partner, and we value their expertise in ensuring compliance and transparency.
Permian Global
What they Say
We engaged with Earthood for GHG calculations across all three scopes for our textile unit, and their expertise was exceptional. Their up-to-date approach and thorough understanding of GHG accounting, including the GHG Protocol, were impressive. Despite the complexities of Scope 3, particularly for the textile sector, the Earthood team handled the inventory with remarkable proficiency. Their consistent availability for technical support was greatly appreciated.
VARDHAMAN
What they Say
It has been an absolute pleasure working with the Earthood team on our key environmental sustainability initiatives. Their outstanding efforts, meticulous attention to detail, and proactive approach were instrumental in ensuring the project's early completion. Earthood's professionalism and commitment to excellence were evident throughout the entire process. I deeply appreciate their collaborative spirit and look forward to continuing this successful partnership.
Indian Army(Pulgaon, Maharashtra)
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