Until recently, the evaluation of a company was mainly based on financial indicators and economic performance. Today, however, the landscape is changing. A company’s ability to manage environmental risks, social responsibilities, and corporate governance issues plays a decisive role in its reputation and credibility in the market.
The ESG score, also referred to internationally as ESG rating, serves as an indicator of how effectively a company manages sustainability, corporate responsibility, and governance issues. Investors, financial institutions, and strategic partners increasingly rely on this assessment to make critical decisions.
In this article, we present 4+1 practical tips to help your company identify its ESG score and take targeted actions to improve it.
Tip 1. Start with Proper Data Collection and Analysis
Improving your ESG score always begins with understanding your current situation. Many companies implement individual sustainability practices but lack a comprehensive view of their environmental, social, and governance performance.
Systematic data collection and analysis such as energy consumption, human resources policies, and corporate governance procedures can form the foundation of a reliable ESG score. Without measurable data, it is difficult to identify areas for improvement or set accurate and realistic goals.
Tip 2. Align Your Corporate Strategy with ESG Criteria
An ESG score cannot be improved through fragmented actions. Instead, ESG criteria must be integrated into the company’s overall strategy. This means that decisions related to investments, operations, and growth should take sustainability, social impact, and transparency into account.
Companies that embed ESG criteria into their strategic planning demonstrate more stable performance, strengthen their credibility, and gain a competitive advantage in markets that increasingly prioritize sustainability.
Tip 3. Invest in Meaningful Actions, Not Just Compliance
Simply complying with regulatory requirements is not enough to improve your ESG score. ESG assessments place emphasis on meaningful actions with real impact, such as reducing environmental footprint, promoting equal opportunities in the workplace, and strengthening corporate ethics.
Companies that demonstrate a genuine commitment to sustainability and responsible business practices achieve higher scores and build stronger relationships with investors, customers, and partners.
Tip 4. Continuously Monitor and Improve Your ESG Performance
An ESG score is not static. Markets, regulations, and stakeholder expectations evolve continuously, making ongoing monitoring and regular updates to ESG practices essential.
Regular performance assessments and strategic adjustments allow companies to maintain and improve their ESG score, while also mitigating risks related to non-compliance or loss of credibility.
Tip 5. Start with a Reliable ESG Assessment
For a company to meaningfully improve and evolve, it must first gain a clear and objective understanding of its current position. Through a comprehensive ESG assessment, businesses can identify strengths, weaknesses, and opportunities for improvement.
The ESG Assessment service by JOIST provides structured analysis, practical guidance, and clear next steps, helping companies improve their ESG score in a strategic and future-oriented way. With the right approach, appropriate data, and clear guidance, ESG criteria can become a driver of growth, resilience, and competitive advantage.
Schedule a free ESG assessment for your company today.