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data-id="d020bc8" data-element_type="widget" data-widget_type="heading.default"><div class="elementor-widget-container"><h2 class="elementor-heading-title elementor-size-default"><span style="font-weight:bold">ESG reporting</span> </br>is good for society</br> and business success</h2></div></div><div class="elementor-element elementor-element-7b5464b elementor-widget elementor-widget-image" data-id="7b5464b" data-element_type="widget" data-widget_type="image.default"><div class="elementor-widget-container"> <img decoding="async" width="1024" height="683" src="https://s31756.pcdn.co/wp-content/uploads/2023/06/ESG-w-background-1024x683.png" class="attachment-large size-large wp-image-9003241322459128" alt="" srcset="https://s31756.pcdn.co/wp-content/uploads/2023/06/ESG-w-background-1024x683.png 1024w, https://s31756.pcdn.co/wp-content/uploads/2023/06/ESG-w-background-300x200.png 300w, https://s31756.pcdn.co/wp-content/uploads/2023/06/ESG-w-background-768x512.png 768w, https://s31756.pcdn.co/wp-content/uploads/2023/06/ESG-w-background-1536x1024.png 1536w, https://s31756.pcdn.co/wp-content/uploads/2023/06/ESG-w-background-1200x800.png 1200w, https://s31756.pcdn.co/wp-content/uploads/2023/06/ESG-w-background-480x320.png 480w, https://s31756.pcdn.co/wp-content/uploads/2023/06/ESG-w-background-105x70.png 105w, https://s31756.pcdn.co/wp-content/uploads/2023/06/ESG-w-background-960x640.png 960w, https://s31756.pcdn.co/wp-content/uploads/2023/06/ESG-w-background-286x191.png 286w, https://s31756.pcdn.co/wp-content/uploads/2023/06/ESG-w-background.png 1800w" sizes="(max-width: 1024px) 100vw, 1024px" /></div></div></div><div class="elementor-element elementor-element-5e3a825 e-con-full e-flex e-con e-child" data-id="5e3a825" data-element_type="container" data-settings="{"background_background":"classic"}"><div class="elementor-element elementor-element-d3d8ef9 e-con-full e-flex e-con e-child" data-id="d3d8ef9" data-element_type="container"><div class="elementor-element elementor-element-f796859 elementor-widget elementor-widget-heading" data-id="f796859" data-element_type="widget" data-widget_type="heading.default"><div class="elementor-widget-container"><h2 class="elementor-heading-title elementor-size-default">Today, now more than ever, the public and investors expect businesses to be better stewards of the planet and to report on this transparently in terms of their environmental, social and governance (ESG) performance. Doing good and accurately reporting on it can also improve your financial status, writes Aaron Woodward, Associate Principal, RLB North America.</h2></div></div><div class="elementor-element elementor-element-0d9c631 elementor-widget elementor-widget-heading" data-id="0d9c631" data-element_type="widget" data-widget_type="heading.default"><div class="elementor-widget-container"><h4 class="elementor-heading-title elementor-size-default">Being good to the environment</h4></div></div><div class="elementor-element elementor-element-400a4af elementor-widget elementor-widget-text-editor" data-id="400a4af" data-element_type="widget" data-widget_type="text-editor.default"><div class="elementor-widget-container"><p>Within the engineering and construction industry, we now increasingly understand the value of constructing environmentally-friendly buildings, not just to save on energy costs, but by comprehending the positive impacts that reducing emissions can have on our planet.</p><p>On average, 30% of the energy used in commercial buildings is wasted. In addition, buildings are responsible for around 40% of global energy consumption, a quarter of global water usage, and a third of greenhouse gas emissions (GHG).</p><p> </p><p>Our industry has an incredible opportunity to significantly reduce its GHG emissions. If we were to cut GHG emissions by 80% by 2050, we could contribute significantly to fighting the changes to our climate as we continue to witness rising temperatures, severe weather, drought and wildfires.</p><p> </p><p>According to the United States Green Building Council, green buildings and communities reduce landfill waste, enable alternative transportation use, and encourage retention and creation of vegetated land areas and roofs. By building green, we can simultaneously reduce the negative impact our buildings have on climate change while also building resilience into our communities.</p><p> </p><p>Whether it is utilising solar and wind energy, constructing buildings with more energy-efficient materials or reducing energy consumption to reduce emissions, it is important to be transparent to your stakeholders and the best method is to prepare comprehensive ESG reporting.</p></div></div></div></div></div></div><div class="elementor-element elementor-element-2ee739e e-flex e-con-boxed e-con e-parent" data-id="2ee739e" data-element_type="container" data-settings="{"background_background":"classic"}"><div class="e-con-inner"><div class="elementor-element elementor-element-66aa463 e-con-full e-flex e-con e-child" data-id="66aa463" data-element_type="container"><div class="elementor-element elementor-element-603e243 elementor-widget elementor-widget-heading" data-id="603e243" data-element_type="widget" data-widget_type="heading.default"><div class="elementor-widget-container"><h4 class="elementor-heading-title elementor-size-default">Understanding the societal impact</h4></div></div><div class="elementor-element elementor-element-44ba5e9 elementor-widget elementor-widget-text-editor" data-id="44ba5e9" data-element_type="widget" data-widget_type="text-editor.default"><div class="elementor-widget-container"><p>Beyond the key environmental results for your company, it’s also important in ESG development to report on the societal opportunities of your work. For example, you should elaborate within your ESG reporting about how you are training employees, how you may be developing wage equality across your organisation, as well as programmes and initiatives to improve workplace health and safety.</p><p> </p><p>Detailing transparency efforts within the supply chain can go a long way in earning stakeholder trust. Examples of such supply chain transparency include disclosing responsibly sourced raw materials, partnering with small and ethical businesses and suppliers that implement humane labour practices and promote diversity. Customers may have taken such things on faith, but increasingly they are making choices based on a company’s social reputation when purchasing. Products and services from companies that report such insightful data are selected over similar products and services from companies that are not so focused.</p><p> </p><p>Readers of our ESG reports must understand exactly how we support the health of our employees (the pandemic taught us all how important such initiatives can be). And it is just as necessary for us to detail our progress in racial equity within our organisations. To grow and be profitable, we need to provide greater inclusivity in our workforce. Moreover, strong social ESG systems positively influence the growth of a diverse pipeline of potential employees which is key to the future growth and health of the industry.</p></div></div><div class="elementor-element elementor-element-ce655b7 elementor-widget elementor-widget-heading" data-id="ce655b7" data-element_type="widget" data-widget_type="heading.default"><div class="elementor-widget-container"><h4 class="elementor-heading-title elementor-size-default">Providing ethical governance</h4></div></div><div class="elementor-element elementor-element-d6a720f elementor-widget elementor-widget-text-editor" data-id="d6a720f" data-element_type="widget" data-widget_type="text-editor.default"><div class="elementor-widget-container"><p>Governance in an ESG report may not seem as dramatic and exciting as environmental or societal impacts, but it is just as important. Governance engages the company’s stakeholders and leadership to examine its values, how it manages environmental and social risk, as well as its sustainable performance and remuneration over the long term.</p><p> </p><p>An organisation’s leadership has a direct connection to its culture and performance outcomes. The ESG report’s creditability is centered on the organisation’s commitment to the successful implementation of sustainability-focused programmes and initiatives. </p></div></div></div><div class="elementor-element elementor-element-622ec47 e-con-full e-flex e-con e-child" data-id="622ec47" data-element_type="container"><div class="elementor-element elementor-element-25a2258 elementor-widget elementor-widget-text-editor" data-id="25a2258" data-element_type="widget" data-widget_type="text-editor.default"><div class="elementor-widget-container"><p><span style="text-align: var(--text-align);">It is also important to reflect upon how your leadership and board are committed to improving the company’s ESG metrics by linking job performance and compensation to sustainability success. If the C-Suite does not truly believe and invest in the sustainable values and culture that are advertised, negative ESG performance as the inevitable outcome will hurt the long-term financial performance of the business.</span></p><p> </p><p>Ethical governance must also include how an organisation interacts with the regulatory and policy environment. Companies that ‘walk the walk’ are those that are engaged in local and regional policy development. These activities address sustainability in a meaningful way that advances the organisation’s interests by focusing on the opportunities that improve performance within ESG and can be measured and reported. Leadership involvement in shaping industry policy is best practice and can help advance the company’s reputation as a leader in the industry.</p></div></div><div class="elementor-element elementor-element-5ff9276 elementor-widget elementor-widget-heading" data-id="5ff9276" data-element_type="widget" data-widget_type="heading.default"><div class="elementor-widget-container"><h4 class="elementor-heading-title elementor-size-default">Challenges and opportunities</h4></div></div><div class="elementor-element elementor-element-fb879fa elementor-widget elementor-widget-text-editor" data-id="fb879fa" data-element_type="widget" data-widget_type="text-editor.default"><div class="elementor-widget-container"><p>Providing true quantitative measures in your reporting is necessary, but unfortunately, some ESG reporting can include grey areas that may make it hard for investors or customers to truly understand your company’s positive impact on society.</p><p> </p><p>Because there are no specific regulated standards for ESG reporting, some companies unfortunately have taken advantage of the system by inflating their sustainability or social progress initiatives. Experts agree that there needs to be increased transparency, a better criterion for providing ESG information, developing appropriate and measurable sustainability taxonomies.<br /><br /></p><p>While it is generally easier to set standards and goals for environmental reporting, it is more challenging create an enforcement framework and organisation to do so in a regulatory effort. Fortunately, there are several ESG reporting formats that support companies’ unique reporting challenges. These reporting systems have improved markedly over the years and now support ESG reporting that reflects industry norms. Embracing the reporting movement will contribute to stakeholder confidence and attract investment allowing for the sustainable growth of your business.</p></div></div></div></div></div><div class="elementor-element elementor-element-b8cfa96 e-flex e-con-boxed e-con e-parent" data-id="b8cfa96" data-element_type="container" data-settings="{"background_background":"classic"}"><div class="e-con-inner"><div class="elementor-element elementor-element-ec483ac e-con-full e-flex e-con e-child" data-id="ec483ac" data-element_type="container"><div class="elementor-element elementor-element-63a3619 elementor-widget elementor-widget-text-editor" data-id="63a3619" data-element_type="widget" data-widget_type="text-editor.default"><div class="elementor-widget-container"><p>Effective ESG programmes now go beyond traditional philanthropy work. Investment in environmental protection and restoration, supporting the diversity and equity values meaningful to your employees and the communities in which you live and work, and investment in policy making are all examples of how business is no longer simply traditional.</p><p> </p><p>Leaders should realise that it is a holistic approach that spans many different aspects. If done well, the financial implications of integrating ESG performance into the overall business strategy can allow you to sustainably manage both growth as well as risk.</p></div></div><div class="elementor-element elementor-element-fc8d553 e-con-full e-flex e-con e-child" data-id="fc8d553" data-element_type="container"><div class="elementor-element elementor-element-ba0869f e-con-full e-flex e-con e-child" data-id="ba0869f" data-element_type="container"><div class="elementor-element elementor-element-dfc6dd3 elementor-widget elementor-widget-text-editor" data-id="dfc6dd3" data-element_type="widget" data-widget_type="text-editor.default"><div class="elementor-widget-container"><p><strong>Aaron Woodward</strong><br />Associate Principal,<br />RLB North America<br /><a href="mailto:aaron.woodward @us.rlb.com">aaron.woodward@us.rlb.com</a></p></div></div></div><div class="elementor-element elementor-element-15b19ee e-con-full e-flex e-con e-child" data-id="15b19ee" 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