How the ESG strategy differs from the climate strategy?
ESG Strategy is a roadmap for companies to integrate environmental, social and corporate governance aspects into their management processes. It is a comprehensive approach that minimizes risks, maximizes stakeholder value and manages resources responsibly. A key element of ESG Strategy is the integration of these three factors into a company’s daily operations. Companies that implement an ESG Strategy gain a competitive advantage, better access to capital and greater social acceptance. This type of strategy helps companies avoid regulatory and climate change risks, and fosters long-term relationships with stakeholders.
A Climate Strategy, on the other hand, focuses exclusively on measures to reduce the negative impact of a company’s operations on the climate and adapt to climate change. More and more companies are recognizing the need to develop a Climate Strategy in the face of global warming and increasing climate regulation.
This type of strategy includes, among other things:
- Greenhouse gas emission reduction measures,
- Investments in low-carbon technologies,
- improving energy efficiency,
- sustainable resource management,
- Optimization of the production process,
- Circular economy (CE) principles and waste reduction.
