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The rise of conscious consumerism paired which the shocking effects of the pandemic have made global leaders realize that ignoring the climate threat is no longer an option. With growing climate concerns, consumers are increasingly preferring the brands that are adopting the Environmental, Social and Governance measures.

ESG has also shifted the way investors, policymakers and shareholders analyse a company’s chances of surviving in the long term and safeguarding it from an unforeseen future.

What is ESG

ESG is the disclosure of data that tracks a company’s strategies and actions towards three-factor: Environmental, Social and Governance.

Environmental in ESG measure

As the name suggests, environmental (E) assesses the impact of a company’s operations on the environment, activities to reduce carbon emission and its strategies to manage environmental risk. Some examples of environmental factors are natural resource management, carbon emission reduction, and conscious sourcing of raw materials.

Social in ESG measure

Social criteria examine how a company builds its relations with employees, shareholders, investors, customers and dealers. Customer relations, employee health & safety, etc, are included in this social factor.

Governance in ESG measure

Building trust with customers, investors and shareholders is a company’s ultimate goal. The governance factor ensures transparency through audits, internal controls, equal pay, shareholder’s rights etc.

Here’s why ESG is important for businesses

1. Attracts long term investors

Investors who keep ESG points into consideration are not just concerned by the profits of the next quarter but by a company’s long term vision and contribution to the planet. These investors tend to stay to build a company’s value in long term.

As the popularity of ESG is growing, investors are searching for companies with a vision that aligns with the betterment of the planet. Research from Gartner.com states that almost 85% of investors in the US considered ESG factors before investing in 2020.

2. Clear communication with stakeholders

Through ESG, companies can develop channels to communicate efficiently with stakeholders. Activities like company audits, corruption checks and upholding transparency maintain stakeholders’ trust and build stronger relations.

3. Attract best talent

Employees are one of the most important factors that lead to a business’s success and stability. The new-age employees, also known as the millennials, are environmentally conscious and will refuse to work with companies without a strong CSR policy, as per Forbes.

Therefore, companies with a strong ESG base will attract employees who are compassionate and are not only associated with the company for profits but to build a better world.

4. Gives a competitive edge

Companies adapting to the changing socio-economic policies are likely to stay in the competition for longer. For example, companies like Starbucks and Nestle have pledged to be carbon neutral. In addition, these companies have made their packaging more environmentally friendly and are increasingly spending more on CSR activities.

With the after-effects of the pandemic, air & water pollution and the rising threat of global warming, consumers are more mindful of their actions and choose to be associated with the companies that are in line with their values and are choosing the planet over profits.

Humans don’t realize the importance of saving the environment unless the effects of their doings dawn upon them to destroy their existence; It's not all their fault because the average human life is 79 years (give or take) & earth is so vastly big that the effects of what humans do, don’t reflect until the generation which actively got involved to do it, gets wiped off the face of the earth in a natural biological life course. The next generation then again takes time to get acquainted with the fact that there are ill effects of what is being done.

Talking about the health of our mother earth; here are 5 shocking facts to put things into perspective:

1. Witnessing irreversible effects by 2030

If global warming goes above the recommended limit; more than 70% of Earth's coastlines will have their sea-level rise greater than 0.66 feet (0.2 meters), resulting in excessive coastal flooding, beach-sand erosion, salinization of water supplies & other impacts on humans & ecological systems which will be very harmful to the human life on earth. (Source: https://climate.nasa.gov/)

According to the findings of the survey conducted by the UN Inter-governmental Panel on Climate Change (IPCC), critically urgent action is needed to avoid the catastrophic effects of global warming over the world. Without the change in our actions towards our environment, we would see an increase in widespread flooding, extreme heat, drought & poverty.

2. Greenhouse gas levels are ever-peaking

Due to the rise in earth’s temperature, greenhouses gases accumulation is affecting nature’s natural processes more than ever. Fossil fuels combustion, Carbon-mono oxide emissions, & the environmental impact because of intensive farming has filled the atmosphere with CO2.

Scientists say that this is the fastest & the largest increase in CO2 emissions; the world has ever seen.

3. Species headed straight towards early extinction

One of the environmental deterioration signs is the extinction of various species from earth, be it animals, birds, reptiles etc. Most of other species' existence are endangered too

The Millennium Ecosystem Assessment, which involved more than 1000 experts, says that about 24 species a day get wiped out from the earth which comes to about 8700s species, per year (Source: e360.yale.edu).

4. Climate change is creating a refugee crisis

As global temperature sees a rise, millions of people living in areas that are very much prone to sudden collapse due to any natural adversity are fleeing their homes to avoid the impacts of potential droughts and foreseeable extreme storms. These numbers are only set to rise in the coming future. The International Organisation on Migration gauges that up to 200 million people would be displaced by the effects of climatic changes by 2050.

(Source: https://www.worldbank.org/en/news/press-release/2021/09/13/climate-change-could-force-216-million-people-to-migrate-within-their-own-countries-by-2050)

5. Our oceans are dying

Our planet is only as healthy as its oceans. The UN has warned that marine life faces irrecoverable damage from the millions of tonnes of plastic waste that ends up in the oceans, every year. More than half of the world’s coral reefs have died in the last 30 years, and 2/3 of the Great Barrier Reef has been damaged by coral bleaching; due to sea temperature going too high up.

(Source: https://www.nationalgeographic.com/science/article/scientists-work-to-save-coral-reefs-climate-change-marine-parks)

The earth itself indeed acts like a living organism; it restores what is being destroyed. But we are causing more damage than the earth can repair. The natural flooding, timely earthquakes, the occasional droughts don’t affect the earth one bit but it destroys human, animal and plant life as we know it.

The Earth will stay alive and kicking much longer after the last traces of the human race could be found on its land. So, it is our decision to challenge the natural course of action or to get aligned with it.

It's high time we take control and make positive changes otherwise doomsday is just around the corner waiting for us

In the relentless struggle against climate change, two unsung heroes have emerged from the Earth's embrace - land and forests. While these resources may seem unassuming, they wield unparalleled influence in mitigating the colossal challenge posed by rising global temperatures. Let's delve into the intricate ways in which land and forests play a pivotal role in combating climate change.

The Carbon Dilemma: A Tale of Sinks and Sources

At the heart of the matter lies carbon dioxide (CO2), the notorious greenhouse gas responsible for trapping heat in our atmosphere. Forests, trees, and grasses collectively act as nature's "sinks" for CO2, heroically absorbing a significant portion of this harmful gas emitted through human activities. This process, known as carbon sequestration, is akin to Earth's own carbon capture and storage technology.

Yet, like a multifaceted puzzle, this story isn't solely one of absorption. The land also serves as a source of CO2 emissions, a consequence of activities such as deforestation and land degradation. These actions release stored carbon back into the atmosphere, contributing to the alarming rise in CO2 levels. Thus, understanding the delicate balance between land as a sink and a source is crucial in comprehending its role in the climate equation.

The Dance of Estimation and Uncertainty

Scientists shoulder the responsibility of deciphering the intricate dance between land, forests, and carbon. They endeavor to estimate the net impact of these natural systems on carbon emissions. This intricate task is no easy feat, considering the myriad variables at play - from diverse forest ecosystems to ever-changing human interventions

Enter climate change, a disruptor that further complicates this intricate ballet. Escalating temperatures place stress on forests, rendering them susceptible to devastating wildfires. As landscapes transform, their ability to sequester carbon is jeopardized. In essence, forests, once reliable carbon sinks, are challenged by the very crisis they seek to alleviate.

Peering Through the Numbers: Insights from Research

Research, as a beacon of understanding, illuminates the intricate nuances of this relationship. A study published in Nature Climate Change (2021) unveiled a striking revelation. Over the span of two decades, global forests sequestered twice as much carbon dioxide equivalent (CO2e) as they emitted. This delicate balancing act, led by Nancy Harris and her team at the World Resources Institute, demonstrated that forests annually absorbed approximately 15.6 billion tons of CO2e, overshadowing emissions from disturbances.

In parallel, the Intergovernmental Panel on Climate Change (IPCC) Special Report on Climate Change and Land 2019 corroborated this narrative. Land use, it indicated, contributed to 13% of human-induced CO2 emissions while concurrently acting as a net sink of around 11.2 billion tons CO2 per year. This net carbon absorption equated to a staggering 29% of total CO2 emissions during the same period.

The Green Road Ahead: Reforestation and Beyond

With our planet at a precipice, the preservation and expansion of forests are thrust into the global spotlight. As nations grapple with the inadequacy of emission reductions, reforestation emerges as a beacon of hope. The idea is simple yet profound: by nurturing existing forests and strategically planting new trees, we amplify nature's ability to counteract our carbon emissions.

However, this endeavor poses multifaceted challenges. Land ownership, equitable distribution of benefits, and the true cost of preserving these ecosystems become focal points. It is imperative that the noble cause of reforestation does not inadvertently perpetuate social or economic inequities.

In a world where climate solutions are paramount, the significance of land and forests as allies cannot be overstated. They stand as testament to nature's resilience and offer tangible pathways to confront climate change head-on. As we navigate the path to a sustainable future, the role of land and forests serves as a compelling reminder of the interconnectedness that binds humanity to the environment.