What is ESG?
ESG is an acronym for Environmental, Social and Governance representing the three key areas used to measure a company’s sustainability, ethics, and socially responsible business practices. Although without an official definition, European Commision defines ESG as a collection of environmental, social, and governance factors that can materially affect a company, its operation, and value creation. These criteria are considered essential in investment analysis and decision-making. *
*Antolín-López, R. and Ortiz-de-Mandojana, N., Measuring and Disclosing Environmental, Social and Governance (ESG) Information and Performance, Publications Office of the European Union, Luxembourg
Why is ESG important to us?
We face constant and significant change in all areas of contemporary life. Global challenges such as climate change, the rise in inequality, and depletion of natural resources are increasingly impacting both our personal and professional lives. As a result, redefining and adapting existing business models has become essential.
Taking the ESG approach in redefining business models ensures that companies stay responsible and transparent in their work across all areas – from relationships with customers, investors, and employees to regulatory compliance and community impact. This approach helps generate positive impact and social progress as it includes responsible management of not only financial, but also natural and social capital.
What does ESG measure?
The ESG criteria is used to measure how a company manages its environmental impact, its relationship to people and human rights, and how it governs itself and its value chain. To ensure long-term sustainability, resilience and competitiveness in the market, it is necessary that businesses follow ESG principles in their development, measure and analyze them, and report to stakeholders.
3 areas of ESG
Let’s look a bit closer at each of the areas 😊
“For years, sustainability reports have been used as indicators of awareness, self-awareness and responsibility of a company. Now, EU legislation demands companies transparently disclose information about how they operate and manage their economic, environmental, and societal impacts. ”
Legislative framework
The European Union’s strategic framework guides business operations toward ESG principles through directives and regulations that have been implemented in Croatian legislation. In the ESG field, three legal acts are the most significant: The Taxonomy Regulation, SFDR, and CSRD.
Click on the + to find out more about each of them.
How can HalPet be your ESG ally?
HalPet’s LPC LMS system is a great way to enhance your ESG compliancy because it offers a sustainable, socially responsible and transparent way of managing the education of your employees. A wide range of courses offers your team continuous development of skills and knowledge – contributing to the creation of a better work environment and corporative culture. As an online educational solution, it integrates all ESG areas into everyday business which additionally benefits companies subject to ESG reporting obligations.
HalPet and LPC help their clients in achieving their goals in all ESG areas
LPC offers several solutions which help reduce the negative environmental impact of business:
By implementing online education, companies enhance their social factors such as inclusivity, social responsibility, working conditions, etc.
LPC LMS was developed to make the process of planning, executing, monitoring, and reporting on education easier and simpler. By using certain features, companies can very easily enhance their compliance with ESG requirements:
Supporting Sustainable Development Goals (SDG):
LPC educational courses support United Nations sustainable development goals (SDG) like Quality Education (SDG 4) and Decent Work and Economic Growth (SDG 8).
Would you like to create courses to increase compliance with ESG standards, or courses about the ESG field itself?
Whether it’s employee training, ESG educations, or policy and regulations, we’ll help you create content that is informative, clear and engaging.
We turn your educational and informative materials into quality eLearning, ensuring your employees receive timely, consistent, high-quality, and measurable education.
