By Thabang Byl, Buildings Segment Lead at Schneider Electric
8 October 2024,
The world’s ESG reporting journey reads like a chapter from a history book. But for the sake of clarity, one should start in 1990; a decade marked by various milestones such as author and advisor, John Elkington’s Triple Bottom Line—People, Planet, and Profit, introduced in 1994, and the Global Reporting Initiative (GRI), founded in 1997 to address environmental concerns, social and governance issues, and the 4.
By 2004, the term “ESG” gained official recognition after appearing in the report titled Who Cares Wins. This report, a joint initiative of financial institutions at the invitation of the United Nations (UN), emphasised integrating ESG factors into company operations.
ESG was subsequently broken down into its three basic components: environmental, social, and governance.
History unfolds
Considering ESG’s rich legacy, it is anything but a buzzword. Today, it serves a critical framework for identifying and mitigating risks related to environmental and social issues. Similarly, companies are being called upon to demonstrate transparency and accountability in their operations.
ESG is integral to sustainable investing, corporate social responsibility (CSR), and risk assessment. Companies now disclose ESG information through various channels, including annual reports, sustainability reports, and dedicated ESG disclosures.
However, ESG reporting might feel to companies’ a behemoth to overcome as there are so many frameworks to follow. This complexity can deter organisations from taking proactive steps toward comprehensive ESG reporting, leading to uncertainty and apprehension.
The good news is that ESG reporting has had decades to mature and with that demystify the complexity. Currently, there are a number of well-known platforms, widely used by reputable organisation, that help organisations assess their ESG performance, ensuring that they comply with regulatory requirements, investor expectations, and consumer demands.
These platforms simplify the reporting process by providing step-by-step guidance, conducting audits, and identifying areas for improvement.
Leading by example
It would be remiss not to mention Schneider Electric which was recently named the World’s most Sustainable Company by Time magazine and Statista. This accolade was given following a transparent, multi-stage methodology to identify the world's most sustainable companies for 2024.
Following a rigorous four-stage assessment, the final ranking excluded unsustainable industries and considered factors like external sustainability ratings and commitments, corporate reporting practices, and environmental and social performance indicators. This produced a ranking of 500 companies from over 30 countries.
Both Time and Statista highlighted Schneider Electric's technological expertise and the Schneider Sustainability Impact (SSI) programme. This programme drives and measures our progress toward global sustainability 2021–2025 targets contributing to six long-term commitments that cover all ESG dimensions. Key milestone includes:
- Among this progress, Schneider Electric has assisted customers in reducing their carbon emissions, with 553 million tonnes of CO2 saved and avoided since 2018.
- Carbon emissions from Schneider Electric's top 1,000 suppliers fell by 27% since the beginning of the program — and 21% of the company's most strategic supply chain partners have met Schneider Electric's decent work standards.
Schneider Electric has also consistently been recognised on platforms like the Dow Jones Sustainability Index and organisations like media and research group, Corporate Knights.
Furthermore, we also host our annual Sustainability Impact Awards which recognises outstanding contributions by its global and regional partners toward sustainable practices.
To aid in companies’ ESG compliance efforts, companies like Schneider Electric offer advanced solutions for energy management and sustainability. For example, our platforms help clients monitor their energy consumption, identify inefficiencies, and reduce their carbon footprint.
Importantly, Schneider Electric’s solutions not only help businesses meet their ESG goals but also enable them to stay competitive in an increasingly sustainability-focused market.
