ESG / CSR
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As the push for sustainability continues to kick into full-drive, companies around the world are looking to acquire whichever certifications or credentials they can in order to demonstrate their commitment to environmental reform – but what about an ESG certification?
An ESG certification can help to demonstrate your commitment to environmental, social, and governance criteria – but does it really exist?
In this article, we’ll provide an overview of ESG, if an ESG certificate is worth acquiring, and which ESG certification may be right for your company.
An ESG certification provides companies with ample knowledge on how to manage ESG funds and other business activities related to environmental, social, and governance factors.
💡 Acquiring an ESG certification can help your company to gain a competitive edge in the midst of a global push for sustainability, improve communication with your stakeholders, help to better manage your suppliers, and more.
Here’s a breakdown of ESG factors:
👉 As it can be challenging to validate all of this criteria across multiple certifications, many companies will seek an ESG certification to demonstrate their commitment to ESG values across the board.
An ESG certification is worth it for any businesses looking to demonstrate their long-term commitment to sustainability alongside a goal to improve their profit and overall brand recognition, as acquiring an ESG certification can help to attract new talent, customers, and business partnerships.
💡 Any company looking to improve their sustainability, risk management, or ESG investments is likely to benefit from an ESG certification – making the at times tedious process worthwhile.
Here are just a few of the things a company may learn while undergoing the process to acquire an ESG certification:
👉 Ultimately, seeking an ESG certification can help your business to become better equipped to handle a wide variety of issues while also helping to expand your company’s success long-term.
While there are various ESG certifications available, there is no universal ESG certification – such as how there is a universal standard for setting emission reduction targets with the SBTi.
💡Although there is no universal ESG certification, there are several options for your company to pursue – such as acquiring an ESG certification with SGS or taking part in an ESG leadership program with Oxford.
Since there is no standardized framework for ESG, organizations who offer ESG certifications will develop their own guidelines based on various criteria – such as by following the criteria depicted in the United Nations Sustainable Development Goals or the Corporate Sustainability Reporting Directive (CSRD).
👉 As there is no single ESG certification, many companies will often opt to acquire more than one ESG-based certification, such as via the GRI, SASB, CDP, ISO 14001, B Corp, and additional certifications depending on their sector and main goal when looking to become ESG certified.
The table below will compare and contrast current ESG certifications on the market:
| Certification | Focus | Pros | Cons | Best Suited For |
|---|---|---|---|---|
| Global Reporting Initiative (GRI) Certification | Sustainability reporting and ESG integration |
- Global recognition - Enhances transparency in ESG disclosures - Widely used framework |
- Can be complex and time-consuming to implement - Mostly reporting-based, less focused on actionable investments |
Sustainability professionals, CSR managers, compliance officers |
| CFA Institute Certificate in ESG Investing | Integration of ESG factors into investment decisions |
- Tailored for financial professionals - Highly reputable within the finance industry - Practical focus on ESG in investments |
- Limited to financial sector focus - Requires prior knowledge in finance |
Investment managers, portfolio analysts, financial professionals |
| Sustainalytics ESG Fundamentals Certification | ESG analysis and sustainable finance |
- In-depth training in ESG - Broad application for finance professionals - High demand for professionals with these skills |
- Primarily finance-focused - Requires ongoing updates with new ESG regulations |
Investment professionals, analysts, and ESG risk managers |
| Sustainability Accounting Standards Board (SASB) Fundamentals | Incorporating ESG into financial reporting |
- Industry-specific ESG standards - Focused on the financial impact of sustainability |
- Limited to financial and accounting roles - Less focus on broader sustainability goals |
Accountants, financial analysts, corporate financial officers |
| PRI Academy ESG Integration Course | Incorporating ESG factors into sustainable investments |
- Comprehensive ESG integration training - Shorter duration compared to other courses - Practical application |
- Lacks certification recognition - Mainly for beginner to intermediate professionals |
Investment professionals, fund managers, sustainability analysts |
| EFFAS Certified ESG Analyst (CESGA) | ESG valuation and integration into investment analysis |
- Europe-wide recognition - Focus on ESG metrics and valuation - Highly relevant for finance professionals |
- Primarily focused on the European market - Requires understanding of ESG financial tools |
Financial analysts, ESG risk evaluators, European investors |
| CDP Climate Change Course | Climate-related risks and environmental disclosure |
- Focuses on climate risks - Highly relevant for environmental disclosure and sustainability |
- Limited focus on social and governance aspects - Primarily environmental-centric |
Executives, sustainability professionals, risk managers |
There are several pros and cons to acquiring an ESG certification, such as the ability to improve risk management, attract ESG-focused investors, or to gain a competitive advantage – but pursuing an ESG certification could be costly and boost potential skepticism of greenwashing.
Here are some of the pros of acquiring an ESG certification:
👉 Since an ESG certification can prove time consuming and costly, it is important for your company to find the most suitable ESG certification for your business to reap all of the possible benefits.
As there is no universal ESG certification, it is important for each company to choose the ESG certification that will prove worth their time, money, and effort.
💡 For instance, a banking company may want to work towards an ESG certification specifically for ESG funding and investments to demonstrate how ESG can be applied to their industry-specific business.
Here are some of the key points to remember when searching for an ESG certification:
Since there are several organizations and frameworks that offer ESG-related certifications or assessments, it is important to acquire the certifications most applicable to your business.
If adhering to the ‘S’ in “ESG” is most important to your organization, such as with fashion or cosmetic companies, your company may want to consider the following ESG certifications:
If your company values sustainable finance, these ESG certifications may be right for your business:
Overall, it is important to remember that while there isn’t one, universal ESG certification – there are a wide variety of ESG-related certification available for your company to validate its effort towards reform for environmental, social, and governance.
💡 Ultimately, many businesses will opt to certify themselves for several of these ESG certifications – but it can be confusing trying to understand which certification is worth your company’s time, money, and effort.
Luckily, we’re here to help guide you through all of the requirements when applying to be certified for almost any ESG certification: from the CSRD, SBTi, and more.
If reading this article on ESG certification and an ESG certification really exists has made you interested in reducing your carbon emissions to further fight against climate change – Greenly can help you!
Deciding which ESG certification to choose and apply for can be overwhelming, but don’t worry – Greenly is here to help. Click here to schedule a demo to see how Greenly can help you find ways to improve energy efficiency and decrease the dependency on fossil fuels in your own company.
Greenly can help you make an environmental change for the better, starting with a carbon footprint assessment to know how much carbon emissions your company produces.
Click here to learn more about Greenly and how we can help you reduce your carbon footprint.
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