[Optimize energy efficiency to improve ESG and corporate value]

In recent years, ESG has been incorporated into operating principles and investment frameworks by more and more companies and institutions. From the perspective of investors, the ESG concept has also become one of the investment indicators. ESG in Chinese means sustainable development. As the name suggests, it is to evaluate whether a company can be sustainable in the long term. elements of business. E (environment) refers to environmental protection, S (Social) refers to social responsibility, and G (Governance) refers to corporate governance. Therefore, the higher the ESG score, the positive increase in the value of the company or institution will be.

Starting from SRI in the 1970s, it has evolved several times to today's ESG. The biggest difference is that it has evolved from a conceptual concept to a clear practical direction. SRI (Social Responsible Investment) mainly considers not only the financial returns obtained from assets, but also It is necessary to consider the changes and impacts of corporate investment on the environment, ethics or society. By the 1980s, the United States was actively considering how to control or reduce pollution while developing the economy, and improve labor and safety standards for employees, and launched the EHS concept to represent environmental protection. , representing Environment, Health and Safety respectively. In the 1990s, the Secretary-General of the United Nations proposed the concept of CSR (Corporate Social Responsibility). Corporate social responsibility means that while a company contributes to economic development, it should also promise to abide by ethics and improve the lives of employees and their families, as well as the quality of life of the overall community and local society. , and ESG is the specific direction of practicing CSR.

What is ESG?

E stands for environmental protection, which is placed at the top of the three concepts. Energy conservation and carbon reduction have also become the first tasks of many countries, such as reducing greenhouse gas emissions, sewage management, waste disposal, biodiversity and other environmental pollution prevention and control. Of course, the environment Health and sustainability are also closely related concepts.

S stands for social responsibility, which refers to improving the quality of life of employees and their families, including labor remuneration, customer welfare, ethics and maintaining good atmosphere, etc. Employees of companies with social responsibility will have a greater sense of belonging and will have a greater sense of belonging. A good reputation is also an element of sustainability.

G stands for corporate governance, which refers to business ethics, healthy competition, supply chain management, etc., corporate stability and reputation, etc. If specifically speaking, it seems to describe personal qualities. The so-called gentleman loves money, and if he gets it in the right way, the company's reputation Directly affects the respect with customers and peers. For example, is there malicious market monopoly? Unfair treatment and dealings? Commercial espionage and so on are all about corporate governance.

ESG score

Companies investing more in sustainable development will help improve their operations and financial conditions, talents will be more willing to stay, increased brand value will attract more cooperation, and a more positive market image will be easier to gain support. The ESG score is provided by MSCI Morgan Provided by Stanley Capital International, the rating structure mainly consists of 3 major categories, 10 themes and 33 key issues, and is divided into 7 rating levels.

Leader
AAA, AA (best arranged from left to right)

Average industry
A, BBB, BB (best arranged from left to right)

Laggard industry
B. CCC (best arranged from left to right)

ESG Score-Category Environment (Environment)

ESG Score-Category Social

ESG Score-Governance

In addition to providing professional energy audit services, Hong Kong Energy Audit 's registered energy efficiency assessors can provide consulting services to your company. By optimizing energy efficiency, in addition to energy saving and carbon reduction, we can also enhance the E element of ESG. In addition, the electricity bill saved can reach millions to millions of Hong Kong dollars a year, creating a win-win situation of cost optimization and environmental greening. Feel free to contact our customer service staff and consultants for quotations and suggestions on energy efficiency optimization projects.