Environment Social and Governance (ESG)
Environment Social and Governance (ESG) are top strategic priorities.
Reliable asset performance is key to all of them in ways you may not have thought about. For starters, how about a 20% drop in energy consumption in your electric equipment … let’s talk
Are you strategic and operational goals truly connected?
According to the US DoE, up to 20% of your energy costs are wasted because of poor maintenance. Get a jump on meeting environmental commitments. Do the right maintenance, the right way.
ESG is important
ESG demands a holistic approach to long-term sustainability and societal impact. It goes beyond financial performance. In fact, it impacts your ability to continue in business. Environmental and social issues, as well as strong governance practices, influence your company’s risk profile, reputation, and ultimately, financial performance.
It requires less capital than you might think
While some capital investment may be needed to reduce carbon footprint in new assets, older assets are not easily replaced. But they can perform better!
Why not improve their environmental footprint without capital investment? Spending some of your ESG budget on maintenance improvement will pay back far more than you may think!
Finance and maintenance touch the entire business.
Leveraging good maintenance goes a long way to achieving ESG and financial goals.
Maintenance and Reliability
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.
Reliable Assets are good for the Environment
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. US Department of Energy studies show that up to 20% of your energy consumption is wasted due to poor maintenance and operational practices. Those are easy to fix. The payback in energy savings will easily exceed the cost of the improvements.
Reliable operations are attractive
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
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.
Let’s talk about how we can help you achieve your strategic ESG goals.
