Environmental
The E in ESG therefore stands for environmental and climate-related matters, e.g. CO2 emissions, climate change and adaptation, pollution, water and marine resources, biodiversity, ecosystems, and the circular economy. It is both about understanding the environmental risks and opportunities and about taking responsibility for how the company impacts the climate and nature.
For an SME, this can mean many things depending on the industry and sector:
- A manufacturing company can, for example, work with waste management, energy efficiency, and reducing pollution.
- A service company can focus on climate-friendly procurement, green transport, or lower energy consumption in the office.
- A company in the energy sector can focus on the use of fossil fuels, CO2 emissions, and investments in renewable energy sources.
In short, the E in ESG is about setting direction for how the company reduces its CO2 emissions, minimises waste and pollution, and uses natural resources in a sustainable way.
For SMEs, it is not always a question of major investments, but of smaller, concrete measures that together can make a big difference both for the environment and for the company’s competitiveness.
On the Danish Industry website you can read more about how you can work with the E in ESG in your company.
