How smart building technology can help you achieve ESG goals

ESG meaning: What is ESG?

ESG stands for Environmental, Social and Governance and is a set of factors that assess and measure how an organisation impacts the environment and society. ESG can be divided into three pillars: 

1. Environmental

Environmental is the first pillar of ESG and focuses on the effects on the physical and natural environment.

2. ESG Social

Society considers the impact on employees, local communities and wider society.

3. ESG Governance

Governance has to do with ensuring systems of accountability and transparency within a company, including issues such as corporate governance structures, ethical standards, and the protection of shareholder rights. 

Integrating these ESG factors into business decisions and reporting contributes to long-term sustainable growth and value creation.

ESG policy and goals

Clients, investors and other influential business stakeholders are all increasingly informing their decisions based on an organisation’s ESG credentials that reveal a business’ impact on society, and the environment, as well as the accountability of its governance.

Smart building technology can help you achieve multiple ESG goals, helping to shape a resilient and sustainable organisation that people want to work for, and other businesses want to do business with.

ESG reporting and regulation

ESG reporting and regulation are playing an increasingly important role in Europe, encouraging companies to be more transparent about their environmental performance, social responsibility and governance practices. ESG reporting provides investors with valuable information to make sustainable investment decisions and encourages companies to put sustainability at the heart of their business strategies. 

European legislation, such as the EU Taxonomy Regulation and the Sustainable Finance Disclosure Regulation (SFDR), imposes stricter standards for ESG reporting and transparency, contributing to a more uniform approach and facilitating comparison of ESG performance between companies. These developments demonstrate the growing importance of ESG in European business and finance, and highlight the need for a more sustainable and responsible approach to investment and business. ESG reporting and legislation are playing an increasingly important role in Europe, encouraging companies to be more transparent about their environmental performance, social responsibility and governance practices. 

ESG reporting provides investors with valuable information to make sustainable investment decisions and encourages companies to put sustainability at the heart of their business strategies. European regulation, such as the EU Taxonomy Regulation and the Sustainable Finance Disclosure Regulation (SFDR), imposes stricter standards for ESG reporting and transparency, contributing to a more uniform approach and facilitating comparison of ESG performance between companies. 

These developments demonstrate the growing importance of ESG factors in European business and finance, and highlight the need for a more sustainable and responsible approach to investment and business operations. Here, building automation also plays a crucial role, with technological innovations being used to improve energy efficiency, optimise resource use and increase the overall sustainability of buildings.