ESG (Environmental, Social and Governance) reporting looks at a business’s collective conscientiousness for social and environmental factors. ESG data is becoming increasingly important as more regulators, investors, lenders and even customers are beginning to request this information. For instance, the Financial Conduct Authority will soon have Sustainability Disclosure Requirements (SDRs) in place for all FCA regulated firms to prevent cases of greenwashing. SDRs will gradually begin to extend beyond the financial services sector over the coming years.
For businesses with a sizeable fleet, the environmental portion of ESG will be of particular concern. When producing data around their emissions, businesses will need to take into consideration not just the emissions they cause directly, but also those that they cause indirectly, as well as the emissions created across the entire value chain.
Companies that provide services to other businesses need to prepare for the fact that businesses will begin to look for suppliers that can demonstrate that they have low emissions. Essentially, the lower your emissions, the more competitive you are.
Transitioning to EVs offers a highly impactful, yet relatively straightforward solution to reducing your emissions.
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