If you’re a business owner, you already know just how important (and how much current focus is on) a company’s ESG (Environmental, Social and Governance) credentials are.
As the world takes steps to go greener and clients and customers factor a company’s environmental impact and sustainability heavily in their decision-making, it makes sense for businesses to explore ways to improve their ESG rating.
Happily, EV charging can positively impact this rating in several ways:
- Environmental impact: Charging EVs is eco-friendly. It reduces greenhouse gas emissions and air pollution, contributing to a more sustainable environment.
- Social responsibility: Implementing EV charging infrastructure shows a company’s commitment to promoting sustainability and reducing its reliance on fossil fuels.
- Governance: Companies who prioritise ESG factors in their business operations and decision-making can quickly improve their governance ratings.
Though there are many ways to improve an ESG rating, on the other hand, factors such as poor management of energy usage or disregard for the social and environmental impact when developing a charging infrastructure could negatively impact a company’s ESG rating.
Thankfully, RAW Charging is at the forefront of deploying EV charging infrastructure and is well-versed in helping businesses to boost their ESG credentials. To improve your company’s rating, RAW has taken a more detailed look at critical areas to explore and consider.
How is ESG administered in the UK?
Regulatory bodies such as the Financial Conduct Authority (FCA) primarily enforce ESG rules in the United Kingdom. The FCA oversees compliance with ESG disclosure and reporting requirements for listed companies.
They can also take enforcement action against companies that breach ESG rules, including severe fines and other penalties. Additionally, companies may also run the risk of sullying their reputation within their given industry if they are found to have poor ESG practices.
Of course, in time, this can lead to investors, clients and customers choosing to take their business and money elsewhere.
Businesses can stay clear of negative ratings and avoid trouble with the FCA by adequately reporting their ESG disclosure. However, the negative impacts of climate change are all too clear; as a result, investors across all sectors are keen to consider the ESG credentials of companies before committing to any investment.
Unfortunately, in the past, the need for more transparency and quality surrounding ESG information and reports has proved a stumbling block for many investors looking to make informed decisions.
For this reason, many countries have adopted mandatory ESG disclosure legislation for all medium to large-sized listed companies, financial institutions and state-owned companies.
As of April 2022, the United Kingdom has enforced two mandatory ESG disclosure laws; The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 and The Limited Liability Partnerships (Climate-related Financial Disclosure) Regulations 2022.
Companies that are required to provide ESG reports.
- All UK companies that are currently required to produce a non-financial information statement, i.e. UK companies with more than 500 employees and either transferable securities admitted to trading on a UK-regulated market or banking or insurance companies (Relevant Public Interest Entities [PIEs]).
- UK-registered companies with securities admitted to AIM (Alternative Investment Market) with more than 500 employees.
- UK-registered companies that fall outside the abovementioned categories have over 500 employees and a turnover of more than £500m.
- Traded or banking LLPs ((Limited Liability Partnerships), which have more than 500 employees
- Large LLPs, which are not traded or banking-related, have more than 500 employees and a turnover of more than £500m.
What should an ESG report include, and why does it matter to companies?
An ESG report must include information and company policies relating to the business’s impact on the environment, employee disclosures, community, human rights and social issues.
These inclusions are essential for companies as they signpost their stance on ESG issues. This information, in turn, will go a long way to attracting broader investment, enhanced partnership opportunities and a more attractive employment policy.
As well as implementing EV charging infrastructure with RAW’s various ownership options, other simple means of improving ESG credentials include:
- Reducing carbon emissions
- Using sustainably sourced materials
- Introducing diversity and equity programs
- Implementing training and educational development for staff
- Employee awards and recognition
- Volunteering within the local community
ESG scores and how they are calculated.
An ESG score is calculated based on how the company is perceived to be performing. Therefore, the business must submit thorough reports to improve its ESG rating – no matter how much they do to change it away from official procedures.
Once reported, they’re independently assessed by some of the largest ESG rating agencies, including MSCI, RobecoSAM, Sustainalytics and Vigeo Eiris. Of course, each company has their approach to calculating ESG scores, but by sticking to the three main ESG pillars, businesses should see their rating improve.
RAW Charging has detailed some of the key factors below:
- Carbon footprint
- Climate change policies
- Land use
- Waste management
- Conservation of natural resources
- Consumer protection
- Supply chain management
- Disadvantaged populations
- Priority populations
- Health and demographic risk
- Business ethics
- Diversity across the board of directors
- Accounting Implementation
- Pay grades
- Executive pay
How EV charging can improve your ESG standing.
With carbon emissions forming such a critical part of ESG score calculation and subsequent rating, it makes sense that investing in an EV charging infrastructure can drastically impact your credentials.
Reducing these emissions across your operations can and will quickly elevate your ESG score, making your business a more attractive prospect to investors, clients, and customers and improving general public perception.
Reaching your ESG rating goals with RAW Charging.
- Install charging facilities for employees and the public
- Introduce an EV infrastructure for your fleet of company EVs
- Transform your site into a destination with the help of customer-facing EV charging stations for EV drivers
RAW’s hosting package requires zero management from the business’s side, with RAW taking care of all add planning, installation, management and maintenance cost-free.
These aspects remove any stress and additional workload for site hosts, who can rest assured knowing their EV charging facilities are professionally and reliably installed and maintained. Moreover, businesses will also benefit from the revenue share produced by RAW’s charging bays.
Is your business ready to boost its ESG score and benefit from RAW Charging’s industry-leading EV charging facilities and ever-growing infrastructure? Contact RAW today for a consultation and information on installing EV facilities at your site.