Newcastle-based energy assessment experts, Green Zone Surveys, is highlighting the need for businesses to be ready to report on their sustainability performance, in line with the Corporate Sustainability Reporting Directive.
The new framework requires companies to report on their corporate sustainability, including how environmental issues affect their business and vice versa, and applies to businesses that are currently under the jurisdiction of the Non-Financial Reporting Directive (NFRD).
Green Zone’s CEO, Callum Thompson, said: “Larger companies and public sector organisations are starting to view environmental, social and governance as highly as financial performance, and are embedding ESG reporting into their practices.
“SMEs, however, still have a lot of questions that need answering, as regulations are increasing all the time for small and medium-sized companies and the CRSD will inevitably roll out to smaller enterprises in time.
“We want to address some of these concerns and questions, and highlight how smaller businesses can begin to prepare for ESG reporting.”
What is ESG reporting?
Environmental, social and governance is a set of criteria that can be used to analyse impact and sustainability, beyond simply reporting on financial performance.
The criteria include how a company works to protect the environment, manages relationships with stakeholders and local communities, and what legislative impacts a company may face.
What regulations apply to UK SMEs?
Currently, there a few ESG regulations to meet, however, the Corporate Sustainability Reporting Directive (CSRD) which came into force in January 2023, applies to medium-sized businesses that are listed on EU regulated markets, or non-EU parent companies with a listed SME subsidiary.
Under the CSRD, companies will be required to not only report on sustainability issues that will affect them, but also the impact the company has on such matters. It is expected that smaller businesses will be impacted by this in time.
How can my small business be prepared?
It pays to be prepared and ESG reporting is fast becoming a standard practice for a lot of small to medium enterprises.
Here are a few steps to get you started:
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Conduct an ESG audit to establish the topics you want to report on.
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Define your objectives – for example, reduce emissions or save energy.
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Create your report to lay out your commitments.
How can Green Zone Surveys help?
Whilst social and governance reporting is something that generally can be managed in-house due to its subjectivity, Green Zone Surveys can help you to evaluate your environmental impact, performance and opportunities with a commercial energy audit, and carbon reduction reports.
A commercial energy audit can identify opportunities to reduce energy use, lower carbon emissions and save money, by offering recommendations and allowing businesses to make informed decisions on what changes need to be made.
An audit can also help to determine how to best invest in energy-efficiency technologies, such as LED lighting, energy-efficient plant and equipment, or energy monitoring systems.
Meanwhile, for organisations with genuine net zero aspirations, creating and implementing a credible carbon reduction plan is a critical part of a sustainability programme.
Green Zone Surveys (UK) Ltd can provide Level 1, 2 or 3 energy audits in compliance with the methodology outlined in with ISO 50002 or BS EN 16247: 2012, as well as detailed carbon reduction reports, outlining carbon footprints and recommendations that benefit both your company and the environment.
As one of the UK’s longest established providers of building and energy compliance surveys, Green Zone has been there since the beginning and has worked alongside businesses of all different sizes in a variety of industries. This means you can breathe easy knowing you are working with professional, industry experts who have the knowledge and experience to guide you through the full compliance process.
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