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Have you heard of ESG? Environmental, Social, and Governance Reporting

We would like to provide you with this overview of such an important topic in relation to the transportation industry. ESG is seemingly everywhere today with rail, highway, aviation, and private companies, developing and publishing ESG reports to set their operations apart for both sustainable-minded travelers and key investors, in the continued journey towards climate change resilience. 

An ESG report is an overview of non-financial risks and opportunities that are part of company day-to-day operations. ESG Reporting is a Sustainable reporting method for your organization’s use of new technology, responsiveness to new regulations, and transition to a sustainable economy. 

The E- Environmental section of an ESG report looks at your organization’s impacts on the planet through reporting on areas such as total carbon emissions, land use and management, energy usage, and clean air and water.   

The S- Social section of an ESG report provides great overlap with the goals of diversity, equity, and inclusion (DE&I) working to understand how a company treats its employees and acts as a responsible part of its community. 

The G- Governance section of an ESG report lays out the governance structure of an organization including providing an overview of the overarching goals and legacy it hopes to provide through lasting impacts. 

While ESG summarizes non-financial risks and opportunities, several studies (NYU and Forbes) have noted a direct, positive impact between ESG reporting and financial health. Stay tuned for a more thorough discussion of ESG reporting in our July 2023 newsletter.