🌍📈 As a Quebec-based SME, you may sometimes feel overwhelmed by the complex language of ESG factors. But don’t worry, we are here to simplify this language and make it accessible to everyone. In our second publication of the ESG series for SMEs, we will discuss the concept of double materiality. Welcome! 🌍📈
Double materiality refers to the fact that a company can have an external impact on the world around it in terms of environmental, social, and governance impacts, but these factors can also have internal impacts on the company’s value and performance. Here is a brief description of the external and internal impacts of ESG factors on your company: 🌱💼
❇ External impact refers to the consequences of your activities on the environment and society. For example, your carbon emissions can contribute to climate change, or your waste can pollute ecosystems. Taking into account this external impact is crucial to preserve our planet for future generations and meet the growing expectations of consumers regarding sustainability. It will also strengthen your reputation and help you attract new environmentally conscious customers.
❇ Internal impact refers to the consequences of ESG factors on your own company. For example, poor management of environmental risks can result in financial penalties or disruptions in your supply chain. Poor management of employee relations can lead to decreased productivity or recruitment difficulties. By considering these internal factors, you can anticipate potential risks, strengthen your operational efficiency, and ensure the long-term sustainability of your company.
💡Implementing an ESG strategy may seem intimidating at first, but don’t worry, I am here to help you! With my extensive knowledge as an executive in the field of financial institutions and risk management, I have the expertise to guide you through the complexities, develop a customized ESG plan specifically designed for your industry, and effectively demonstrate the value it will bring to your operations. 💡
Facultas-Risk Consulting Inc., we are your trusted partner, always ready to help you seize opportunities and manage risks effectively. 💼🔍
