ESG: Environment, Social and Governance

Maintenance and Reliability of your physical assets ​impact on your ESG performance. They can actually provide some quick wins in your efforts to achieve mid and long terms ESG goals.

Environmental Factors look at how a company’s operations impact the environment. It includes carbon emissions, energy efficiency, waste management, pollution, resource depletion, and climate change adaptation strategies. Maintenance and reliability have a big impact on energy efficiency, equipment life, failure risk mitigation, as well as performance. Did you know that up to 20% of your energy consumption is wasted due to poor maintenance and operational practices?

Social Factors look at how a company interacts with its stakeholders, including employees, customers, communities, and suppliers. This includes issues such as labor practices, diversity and inclusion, human rights, community engagement, product safety, and data privacy. How well you train and equip your employees impacts their performance and attitude. Attracting and retaining workers is increasingly influenced by how well a company lives up to its stated values – it’s reputation depends on action, not just words.

Governance Factors refer to the internal systems and structures that guide a company’s decision-making processes and accountability mechanisms. It involves assessing aspects such as board diversity, executive compensation, shareholder rights, transparency, anti-corruption measures, and adherence to ethical business practices. Increasing society pressures to be good stewards of our environment, and good fits within the societies in which we operate, are having an increased influence on board decisions and direction. Maintenance and reliability have a direct impact on environmental and safety performance. Increasingly, companies are expected to walk their talk. Executives and board members are increasingly being held to account for failures.