ESG term refers to Environment, Social, and Governance factors. Sustainability reports are prepared to position the ESG factors. This reporting ecosystem is composed of three major stakeholders; Regulators, Corporates and Consumers. Big companies report their ESG impact as part of their regulatory compliance and they use multiple standards & guidelines like GRI, CDP, SDGs, and SASB, etc. to map their ESG data into meaningful interpretations.
In recent times, “impact investment” is nourishing and investors are keen to invest in sustainable businesses. Critically speaking, existing sustainability reporting models are not focused on the consumers, or somehow consumer aspect is hidden between the lines.
Carbonly has been working on the GEMS & CO2e Passport, a data-driven sustainability ecosystem It is composed of;
- Software as a service (SaaS) application to measure & manage the GHG emissions for carbon-managed corporates; and
- A mobile application offering low carbon products and carbon rewards for carbon-conscious consumers
The vision of this ecosystem is to create conscious communities of carbon-managed corporates and carbon-conscious consumers.
The question arises, How does ESG reporting fit into this data-driven sustainability ecosystem?
Let’s explore the answer in the following discussion.
Environment: GHG emissions come from several sectors as shown below. It is important to note that over 80% of emissions are sourced from electricity, Food, industrial and transportation activities.