You might have heard of ESG before—and not just from us. A lot of companies are now focusing on ESG factors.
In fact, we found 1,171 active companies in the UK that hit one or more of our ESG signals—1,120 of which were in the seed, venture, or growth evolution stage. And while this number might seem relatively small compared to the number of active businesses in the UK, it’s soared since 2013 when just 150 active companies hit ESG signals.
Using ESG data can allow businesses to make informed and fair decisions, and steer them towards being part of the green economy. The green economy represents a transformative shift towards a future where economic growth and sustainability go hand in hand.
It’s an ecosystem where resources are utilised sustainably, waste is minimised, and the environment is revered. And being a part of this movement is imperative if you’re a business that wants to stay at the forefront of the market.
What is ESG?
ESG stands for Environmental, Social and Governance. These three factors can guide businesses to make better choices.
Environmental
Environmental factors look at how a company performs as an advocate on green issues. This includes how it handles issues related to climate change, its carbon footprint, waste management, water usage, and how the company’s policies and practices impact the environment.
Social
The social element looks at how a company manages relationships with employees, suppliers, customers, and the communities where it operates. This covers topics like labour standards, diversity, human rights, consumer protection, and animal welfare.
Governance
Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. It encompasses the standards for running a company, such as policies on corruption and bribery, board diversity and structure, and transparency in accounting and tax matters.
Still have questions? Check out our ESG Q&A.
Why are ESG signals important?
We introduced ESG signals because they will become an essential part of any complete dataset.
In the face of climate change, societal shifts, and governance challenges, ESG signals provide valuable insights that can drive long-term growth, mitigate potential risks, and foster a positive impact on society and the environment.
As these factors become intertwined with financial performance, our inclusion of ESG signals ensures that our dataset is not just comprehensive for today’s standards, but is also equipped to meet the more sophisticated and conscientious analytical demands of the future.
Are ESG signals valuable for your business?
Here at Beauhurst, we believe that ESG signals are essential for every business. Whether or not you’re focusing on environmental or social issues, every company needs to be a part of the change. Many stakeholders will want to see businesses that align with their own practices and beliefs, and they’ll want to see those companies upholding ESG factors.
Although ESG signals can be important for everyone, they may be particularly beneficial to businesses such as councils. As a local council, you need to advocate for diverse and inclusive business practices, and focus on green issues. This can be overwhelming, especially considering the lack of specific data out there. But with our new ESG signals, councils can easily find the data they need to make the right decisions.
