ESG Scoring is certainly not new: for more than 20 years, sustainability performance has been talked about as a primary factor in the evaluation of a company.
The ESG Score provides a concise assessment of a company’s (or institution’s) activities in environmental, social and governance terms.
It’s an important analysis because it can generate a picture of the company’s sustainability prospects and its ability to generate value in the long term. A company is sustainable from this point of view when:
- the created value is shared over time with all stakeholders
- decisions are determined by the evaluation of all areas, both financial and non-financial
- it’s transparent in the communication of decisions
The evaluation can take place in different ways, but always through third-party entities called ESG Rating Agencies, which are specialised in collecting and processing this kind of data.
The environmental aspect of ESG Scoring
Sustainability is the first analysis factor in the ESG Score and considers all risks related to climate change.
All activities related to energy efficiency (which of course includes office design), the selection of resources from certified supply chains and the daily actions of employees are crucial for this part.
People and the company: the social sphere
Improving working life means investing in productivity. There is no one-size-fits-all solution here: each company must assess the needs of its employees. Some examples:
- replacing furniture with more ergonomic alternatives
- designing equipped lounge spaces, suitable for individual work and informal meetings
- implementation of hybrid working
- greater attention to diversity and inclusion
- integration of activities aimed at involving employees in everyday working life
The alternatives are endless and in constant evolution.
Ethics and governance
The last aspect often takes second place to the previous ones, but it shouldn’t be ignored.
The management of the company must be transparent, diligent, ethical and increasingly attentive to safeguarding personal data.
A good management of ESG scoring factors is as beneficial in the short term as in the long term, as it increases productivity, improves reputation and attracts new talent. A step towards a sustainable future in all aspects.
The Frezza Code of Ethics, in which all ESG good practices of the company’s activities are defined, is available at this link.