Bangkok, May 26 – finbiz by ttb analyzes business development based on ESG principles, not just trends. But creating opportunities for business to grow in tandem with the world to live sustainably
ESG is not just a trend. It is a concept of sustainable organizational development that consists of 3 dimensions, namely, the dimension of the development of the environment (Environment), society (Social) and good governance (Governance), which is a global concept that businesses of all sizes. must be given priority for the world to live sustainably and the business can continue in the future
finbiz by ttb, a project to enhance business knowledge, analyzed that the drive for businesses to hurry up to develop an organization according to ESG concepts is not just because Business is only a key part of contributing to a more sustainable world. But there are other impetus that make businesses ranging from large to SMEs to pay attention to and need to access and use ESG concepts in business operations, including
1) Climate Crisis & Environmental Concerns Concerns The expectation that business will contribute to reducing global temperatures to below 1.5 degrees Celsius. It is the expectation of those who have stakes in the business, so it is essential that businesses pay attention.
2) Various regulations (Regulatory Driven), such as the Climate Change Act, carbon tax, carbon credits If a business has high carbon emissions In the future, it is inevitable that Compensation for environmental damage caused by doing business In the form of a carbon tax, etc., which will result in higher costs in doing business.
3) Social concerns (Social Concerns) At present, there is more talk about inequality, human rights, and equal treatment of everyone, especially Gen Z, a large group of workers who have started to enter the organization to focus on This is especially true for Talent-level employees who pay special attention.
4) Company's Reputation An organization with clear sustainability management guidelines Inevitably creates confidence in business operations for stakeholders, partners and alliances.
Sustainability is an “opportunity” in various aspects, namely:
1) Reduce costs in the long run Sustainability offers huge cost savings such as lower electricity and water bills and zero waste. Making business processes more LEAN, meeting financial needs And the organization can profit more competitively.
2) increase competitive power increase stability Business strategy planning to respond to changing global trends will help reduce risks and increase the competitiveness of the organization in the future.
3) Attract talent level human resources Sustainability is a magnet for talented people who want to work with an organization. If you take good care of your employees Employees will want to stay with the organization for a long time. The cost of recruitment, manpower planning to replace personnel in various positions will be reduced as well.
4) Attract Investors ESG concept is a handicap in earning money. or raise funds for the company in the future Because investors and financial institutions now consider sustainability. before deciding to invest or lending to a particular company
5) Opportunities for innovation and new business Many companies integrate ESG into their business. Until being able to launch innovative products or successful new business
6) Enhance the image of the organization Meet the changing needs of customers. Responding to the changes in today's era where people turn to social sustainability. and more environmental
Therefore, entrepreneurs can see that ESG is not a trend. If you do not rush to start today, you will lose opportunities. and power in all competitions. Businesses that start earlier have advantages. which in the current situation must be started now in any one dimension Whether it's the environment, society or good governance, the leaders of organizations who see the importance will be able to push the organization and integrate ESG concepts without difficulty.-Thai News Agency
Source: Thai News Agency