EESG Pillars: Environment
Climate change is one of the most pressing issues of the contemporary world. The world is adopting sustainable solutions to counteract climate change. To aid in the journey of sustainable development, a new framework has been introduced - The EESG framework.
This article is the first of a 4 part series, where you will be introduced with the 4 pillars of the EESG framework. The focus of this article will be the Environmental aspect.
Before we begin, let us understand what EESG is.
EESG stands for Economical, Environmental, Social, and Governance. It’s an evolved version of ESG (Environmental, Social, and Governance). It has been branded as a holistic framework that emphasizes balanced growth. It is increasingly used in policy-making, sustainable business practices, and responsible investing.
Pillar 1: Environment
As discussed earlier, climate change is one of the most talked about issues of the modern world. The United Nations defines Climate Change as a long-term shift in temperature and weather patterns. Climate change has happened in the past due to natural causes such as the sun’s activity (increasing number of sunspots and frequent solar flares) or volcanic eruptions. But in recent times, the activities of humankind have been the main driver causing it.
Solar Flare
Volcano Eruption
Since the dawn of industrialization, pollution has increased tenfold due to the combustion of fossil fuels. The burning of fossil fuels releases gases like Carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O) into the atmosphere. Due to the greenhouse effect, these gases trap heat, increasing the average temperature, resulting in global warming. This has been cited as the main contributor towards the climate crises.
Another reason would be the usage of land over the years. Deforestation, urbanization, and agriculture have greatly altered the Earth’s surface, causing a devastating impact on the carbon balance. This is because deforestation and urbanization in particular have been known to increase heat retention or heat island effect and increase the carbon footprint. Carbon sinks, that is, natural systems that absorb more carbon dioxide (CO₂) than they emit, such as trees and oceans, are decreasing rapidly due to these activities. According to the United Nations, the average global temperature will increase by 1.5 Celsius by 2050. Scientists also expect 1 million plant and animal species to be driven to extinction and 1.12 million premature mortalities due to air pollution.To counteract these devastating effects on our planet, governments and organisations around the world should take a stand and have started implementation these measures:
Environmental Protection regulations
Governments must implement regulations that push organisations to be more eco-friendly such as Frequent monitoring of pollution levels, Setting measurable emissions reduction targets and Undergoing environmental audits and reporting. The European Union has seen positive outcomes by implementing these measures.
Life Cycle Assessment Metrics
Institutions could achieve climate goals faster by adopting LCA. Life cycle assessment (LCA) evaluates environmental impacts from raw material extraction to product disposal.
LCA aims to:
1. Reduce carbon intensity across supply chains
2. Minimizing resource waste
3. Ensure a cradle-to-grave analysis of a product’s environmental footprint
Nature based Solutions
One of the most popular and effective ways to meet environmental targets are through Nature Based Solutions like ecosystem restoration and conservation. Governments and Companies alike are increasingly investing in reforestation, wetland restoration, and biodiversity programs, which are scalable ways to offset negative environmental impacts.
Afforestation
Integrating Environmental consciousness into Corporate Governance
Companies should embed sustainability in decision-making. Tying environmental Key Performance Indicators into incentives and integrating climate risk scenarios into strategic planning are some ways to achieve this goal.
These are just some ways by which we can implement the environmental aspect of the EESG framework. By utilising such measures, we can mitigate the climate crises that looms over our heads.