Manufacturing Today Issue - 228 Sept 2024 | Page 27

___________________________________________________________________________________________________ Sustainability

GOING GREEN

How ESG accelerators are turning sustainable changes into a greener bottom line . By Ian Kingstone

Manufacturers are realizing the importance of ESG reporting within their business performance management strategies to create value for stakeholders . Sixty percent of UK businesses may already have long-term ESG targets , but there ’ s a bigger business picture to be unlocked . How can manufacturers unlock new business growth opportunities with ESG data accelerators that will fast-forward ESG reporting ?

ESG performance is key to global business investors , with 80 percent of C level executives and business investors saying that ESG strategies will contribute more to shareholder value in five years than today and investors are willing to pay ten percent more for organizations with positive ESG records . To improve their ESG records , manufacturers need the right expertise and IT software to obtain and interpret the required ESG data as without , they risk missing out on investment and business opportunities .
Everything ESG – can it overcome today ’ s manufacturing challenges ?
So , what exactly is ESG reporting ? It ’ s the gathering and disclosing of data on a manufacturer ’ s environmental , social , and governance activity . This data disclosure can be key to gaining the trust of key stakeholders . But with corporate compliance and risk management at the forefront of manufacturing organizations as the industry becomes more complex and geopolitical volatility increases , ESG reporting must be flexible for manufacturers to enable them to overcome these challenges to demonstrate their success .
ESG strategies must be clearly set out and explain how they can be achieved to help the wider organization understand the key drivers , opportunities , and risks of becoming more sustainable .
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