Sustainable business should be embraced by all companies in the near future that want to succeed in the competition for an aware client, but also to obtain favorable loans to finance their business.
In the Building Management magazine 1/2025 poll , “Why should ESG be in the interest of companies?”Dominika Hippová, CSR Manager/ Ethics and Compliance Officer at ENGIE Services, answers the questions of the editor Andrea Dingova.
The topic of corporate responsibility is highly topical. In this context, doing business in accordance with ESG principles is a recurring theme. Why is ESG relevant?
The ESG approach promotes business stability. It minimises negative impacts on the environment and society by taking into account both the risks and opportunities associated with environmental and social factors. According to surveys, companies with an ESG strategy in place are more attractive to employees, clients, investors and communities.
What should a properly set ESG strategy include?
In ENGIE, we went through the following steps in particular when setting up the strategy:
- Prioritising by analysing the impact of our activities against the targets set by international agreements. Identifying areas that we impact in a key or significant way. Considering the relative impact of external factors on our business and our activities on the external environment;
- setting targets – specific, measurable and time-bound, both short and long-term, for each of the factors;
- the creation of a dedicated team responsible for implementation and monitoring;
- implementation plan;
- systematic and efficient collection of relevant data for each of the defined indicators, their clear recording and regular evaluation;
- transparent and regular communication of progress and results to all stakeholders;
- Identifying and managing risks, updating the strategy.
What are companies required to report under ESG?
Information materially affecting their business activities in the area of:
- “E” environmental – emissions, energy and water consumption, waste management, biodiversity, etc;
- “S” social – working conditions and rights of employees (both own and contractor’s), their development and training, inclusion and diversity, stakeholder relations, social impacts of business, etc;
- “G” Governance – governance structure, transparency and accountability in governance and business conduct, ethics, policies and procedures, risk management, control activities, and more.
What are the main benefits of implementing the strategy and meeting ESG objectives for companies?
The ESG approach brings indisputable competitive advantages to the company in addition to its obligations:
- increase reputation, trust and attractiveness for clients;
- new business opportunities;
- investor interest;
- higher employee retention, but also attractiveness of the employer for external candidates;
- analysing the risks associated with climate change and social challenges, setting up an action plan and implementing measures to eliminate them, which also increase the company’s preparedness and resilience in a competitive market environment.
However, there are also negative impacts for companies that underestimate this issue, e.g.:
- loss of competitiveness;
- loss of financial resources or their provision on significantly worse terms;
- the direct financial cost associated with the carbon offsetting mechanism;
- Reputational risk.
What advice/support can you provide to your clients on ESG issues?
ENGIE is strategically focused on providing comprehensive energy services using renewable resources. We help clients meet their decarbonisation goals through our services:
- Energy efficiency – reducing energy consumption in processes, manufacturing and non-manufacturing, with an emphasis on digitalization and the application of Industry 4.0.
- Decarbonisation strategy – focusing on targets, funding options and timeframe for implementation.
- Renewables and energy transition – implementation and delivery of measures using a mix of renewable sources.
We are investing significant funds annually in our own decarbonisation strategy. We currently cover up to 30% of our heating and cooling production from renewable energy sources. This includes in particular the use of waste biomass for energy purposes and photovoltaic power plants.
As an example of other implemented technologies in Slovakia I can mention BESS battery storage, heat pumps, biogas station, wind power plant or biomethane production in the future.
Interesting is also the assistance in the creation of local ENERGO concepts of cooperation of individual manufacturing companies within production parks in order to obtain cheaper energy, or Smart Grid solutions with the integration of the services of the ENGIE Balance Group. These are:
- management of the balance deviation with a focus on the management of renewable resources;
- production, distribution and sale of commodities (heat, cold, electricity);
- Aggregation of flexibility, using production resources and consumption also for support services.
In our conditions we can also apply PPA and vPPA contracts. They represent a financial instrument that aims at a stable energy price for e.g. 10 to 20 years. The main advantage for the client is thus the predictability of its costs.