Waste Management - An Important Component Of ‘ESG’

ESG takes center stage in organizations all across …

The entire world is talking about climate change, reducing carbon footprint, environment and sustainability and in recent times the concept of ‘ESG’ is taking center stage in all businesses and organizations. In simple terms ‘ESG’ or Environmental, Social and Governance is a measure to access practices and performance of organizations taking into consideration various environmental and ethical aspects?

Although the regulatory framework might be different in different geographies, the major three pillars on which this assessment is done are Environmental, Social and Governance. And Waste Management is one of the major elements in Environmental indicators of ESG. Although some elements in these three pillars like ethics, sustainability are considered to be a non-financial, they are equally important as they bring more accountability in processes which have a social and environmental impact.

Waste Management - a key component of ESG

Waste is a similar challenge all over the world affecting our health, environment and economy. Waste Management is pivotal in prevention of environment. Today organizations are dwelling deep into this topic and talking about Circular Economy and Net Zero. Responsible use of raw material and natural resources, optimizing waste management and using waste as a resource for other processes is becoming more common. This results in energy and cost savings, better use of waste and lessens the impact various processes have on environment and people. Innovations and newer technologies are driving the cause towards lesser or zero waste discard in coming years. In a way effective waste management is pivotal to the success of ESG.

How does these matter to a common person ?

Although ESG us on the rise in India, there isn’t much awareness about ESG amongst the citizens. But as people get increasingly aware about environment and sustainability and go for greener choices, apart from bringing change in their own habits and consumptions patterns, they will look to invest or consume products and services from companies which follow these practices. People will increasingly put money in companies which have values aligned with the need of sustainable future thus contributing to ESG as a concept.