ESG criteria have appeared relatively recently, but they are already gaining popularity as standards for assessing corporate performance.
In a world where corporate responsibility is increasingly important for the successful development of companies, understanding and applying ESG (Environmental, Social, Governance) criteria is becoming key in the development of business process automation strategies. ESG criteria provide a framework for assessing the environmental, social and governance impact of a company’s operations.
What ESG criteria measure
1. Environmental – Environmental aspects
Modern companies are increasingly challenged to reduce their carbon footprint and the environmental impact of their operations. When developing business process automation solutions, it is essential to consider the ability to optimize energy consumption, resource use and emissions reduction. The use of innovative technologies such as cloud computing and data analytics can help companies reduce their environmental footprint and become more resource efficient.
2. Social – Social aspects
Corporate social responsibility is becoming increasingly important to strengthen the brand and attract talent. When automating business processes, the impact on employees and society as a whole must be taken into account. This includes creating jobs, ensuring equal opportunities for all employees and respecting human rights. Using automation to improve working conditions, increase productivity and develop employee skills can be a key element of corporate social responsibility.
3. Governance
The governance aspect includes transparency, ethics and efficiency of the company’s internal processes. When developing solutions to automate business processes, it is essential to ensure compliance with regulatory requirements, prevent corruption and maintain high levels of governance. The use of digital technologies such as blockchain and digital signatures can help ensure that governance processes are transparent and reliable.
The importance of ESG
ESG criteria are becoming critical for companies today, impacting their growth, profitability and ability to attract and retain talent.
Studies show that 86% of consumers worldwide expect executives to play an active role in addressing social issues. In addition, 58% of employees consider a company’s social and environmental commitments when choosing where to work. The statistics also show that 64% of millennials would not consider working for companies that lack strong sustainability practices. Employees who feel their company has a purpose are three times more likely to stay in their jobs than those who do not experience this level of satisfaction, and are 1.4 times more engaged in the life of the organization.
These results highlight the need for companies to pay special attention to ESG issues and incorporate them into their management strategies and practices. Responsible business conduct, consideration of social and environmental aspects and active participation in solving social problems are becoming an integral part of successful operations in today’s world.
In Europe and the United States, ESG is widely used in investment activities; it is often incorporated into corporate risk mitigation, compliance and investment strategies, and includes a wide range of metrics and best practices. The Sustainable Development Goals (SDGs), established by the UN in 2015, are used to assess a strategy’s compliance with ESG criteria. They provide a comprehensive framework for advancing a sustainability plan.
ESG is ongoing transparency
ESG requires companies to regularly demonstrate how each step of all their processes is carried out. At first glance, it may seem very difficult for a company and all its business partners to achieve full transparency of all its processes.
Power Pulse Solution recommends starting by digitizing processes. Digitized and automated processes have a multiplier effect when combined with various business applications and technologies such as SAP or other ERP systems. The latest technologies enable sustainable and responsible solutions with ESG criteria.
The Power Pulse Solutions team contributes to the sustainable development of companies in EU and LATAM countries, thus expanding international market opportunities. We systematically implement automations adapted to the business challenges of the mining, financial, chemical, and governmental industries.
