Navigating the complex landscape of sustainability and ESG

With the speed in change of mandatory reporting regulations on climate change and the the significant increase in net zero commitments, it is essential that every business, from large to small, begin to self educate and start the integration of material aspects of ESG such as the impact of the changes in extreme weather. 

Investors and financial markets are increasingly seeking clearer and more robust plans for addressing environmental, social, and governance (ESG) concerns and achieving net zero emissions. While business leaders acknowledge the need for action, small and medium-sized enterprises (SMEs) face significant challenges in understanding and implementing these changes.

Recognizing these difficulties, Simplify Climate acknowledges the struggle of adapting to new regulations like TCFD (Task Force on Climate-Related Financial Disclosures), TNFD (The Taskforce on Nature-related Financial Disclosures) and ISSB (International Sustainability Standards Board).

We at Simplify Climate, led by our founder and CEO Jose De Mayne Hopkins, are helping companies with their integration of TCFD, TNFD, ISSB and other mandatory ESG regulations such as EU CSRD.

The UK government has issued a net zero target for 2050, this includes the mandate of integrating climate change disclosures across the UK economy (this includes SME's). Therefore, it is imperative for UK businesses to self educate and start understanding net zero and ESG, and we at Simplify Climate can help. 

What is ESG?: 

The "E" in ESG focuses on addressing the environmental impact and climate-related risks faced by a company and its suppliers. This encompasses reporting on climate change and greenhouse gas emissions, as well as managing air pollution, water resources, waste, embracing circular economy principles, and restoring ecosystems.

The "S" in ESG relates to social aspects, encompassing the organization's impact on its internal workforce and surrounding communities. This includes considerations of societal impact when sourcing raw materials from regions with perceived lower labour standards compared to the UK. It also involves assessing risks associated with societal actions by suppliers, consumers, and communities, such as labour practices, health and safety standards, community engagement, diversity and inclusion (including within the supply chain), and community relations.

The "G" in ESG primarily concerns the internal governance structure of an organisation, focusing on the distribution of rights and responsibilities within the company. The goal of governance is to evaluate the timing and quality of decision-making processes and the overall governance framework to ensure a positive societal impact. This encompasses areas such as business ethics, supply chain management, capital allocation, and policies.

Here at Simplify Climate, Jose has built a team of subject matter experts to support clients and a wide range of businesses in a variety of industries. He possesses a passion for aiding organizations in comprehending and interpreting significant climate and ESG risks into their operations. He communicates this expertise in a clear, accessible manner, making complex information easy to grasp and absorb.

“It’s not going to be easy for the UK economy to reach net zero by 2050 – it needs massive effort and collaboration. The sheer volume and scientific language applied to the subject makes it daunting for smaller businesses and so it’s a significant challenge to understand what to integrate. There has been a lack of government guidance and policies around net zero leaving SMEs struggling to get started. 

“SMEs need help breaking down what they can do in terms of the sector they are in and their regulatory areas. We need to work together to create a plan to find an alternative to the short-term view of the current system.”

How can we help?

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Please reach out to help@simplifyclimate.co.uk to book an initial free consultation to explain how we can support you.

Let us help you stay ahead of the curve and drive positive change. Join our mission to help organisations become sustainable.

For more information on Simplify Climate please visit our website: www.simplifyclimate.co.uk.