Environmental, Social and Governance (ESG)
For the good operation of every company, goals must be set, but the set of those concerning sustainable development (environmentally and socially) is ESG (Environmental, Social and Governance). The goal is not only the financial development of the company, but the acquisition of a social face as well as a friendlier attitude towards the environment. (https://ti-einai.gr/esg/)
What is Sustainable Development?
Sustainable Development is development (regardless of the sector) whose implementation is guided by the protection of the environment. The maximum possible gain of goods from the environment, but without interrupting the natural production of these products in sufficient quantity in the future.(Wikipedia)
Included in this area are issues concerning both living and non-living physical systems.
Corporate Governance (G)
They are the procedures for decision-making, for the structure of the company and for the management practices.
The limited understanding of sustainability by small and medium enterprises and the perception that ESG is only for "big enterprises" makes it difficult for them to develop in the new reality. (https://www.athensvoice.gr/epikairotita/ellada/774408/epiheiriseis-kai-praktikes-esg/ )
What are the benefits of ESG for SMEs?
ESG benefits to SMEs:
1. Reduction of operating costs.
2. Employee engagement and productivity at higher levels
3. Increase in income etc.
4. Business innovation
5. Ensuring capital inflow and access to investments with ESG criteria.
6. Improving the energy footprint of buildings, equipment and facilities
7. Turning to low-emission sources, such as biomass, methane, geothermal, waste-to-energy, hydrogen
8. Review and upgrade the efficiency of production and distribution processes (green movement, circular approach, adoption of recycling)
9. Entry into new markets.
10. Utilization of the incentives provided by the state and the European Union
What dangers should you protect yourself from:
1. Transitional risks
Natural hazards with immediate effects
Natural hazards with long-term effects