Many of us believe we grasp the basics around climate change and the terminology related to its preservation. But from experience, this isn’t necessarily true. One thing I’ve learned since launching Fils is that the gap between what we think we know about the environment and our actual knowledge is wider than we think.
Acknowledging discrepancies in our understanding isn’t a failure; it’s a starting point. As a fintech committed to working with businesses to activate sustainable environmental practices, we feel it’s our duty and responsibility to educate and set things straight about what is happening in the environment – and to help make the world a greener and better place.
To bridge this knowledge gap, Fils has decided to use its social media platforms to share what we’ve learned along our journey to ensure everyone has a clearer picture of what is going on. Armed with better information, we all have a greater chance to contribute positively by making informed decisions about our environment and taking the necessary steps to mitigate our environmental crisis.
What is Climate Change and what is Climate Action: A Beginner’s Guide
Understanding Climate Change
Climate change is a term that describes big and lasting shifts in weather patterns, which are mainly due to the higher amounts of carbon dioxide in the air from using fossil fuels like oil and gas. The idea of climate change has been around since the 1800s when scientists started guessing that carbon dioxide could make the Earth warmer. But it wasn’t until the later part of the 1900s that people really started to notice and talk about the Earth heating up.
The main reason for climate change is the greenhouse effect, where gases in the atmosphere trap heat, making the Earth warmer. This effect is made worse by human actions, such as burning fossil fuels, cutting down forests, some farming practices, and industrial activities that add more of these heat-trapping gases to the atmosphere.
Climate change affects our planet in severe ways: storms, droughts, and heatwaves become more common and intense; sea levels rise, endangering coastal areas; animals and plants struggle to survive in their changing homes; and growing food becomes harder, affecting what we can eat. These changes threaten our health, safety, and money.
Fighting climate change means we all need to take what we call ‘climate action’. This includes important steps like switching to renewable energy, making things use less energy, protecting forests, and coming up with new green technologies. Everyone can help by using less energy, choosing public transport, and supporting eco-friendly choices and laws.
Taking action against climate change also involves pushing for and following through on laws that lower the amount of greenhouse gases we put into the air and finding ways to live with the changes that are already happening. Global agreements, such as the Paris Agreement, are also crucial because they get countries to work together to limit the Earth’s warming and prepare for a better future.
ESG: What is It and Why is it Important?
Every day, you’ll see ESG popping up in the news. But what does ESG stand for, and why is it important? For those of you too embarrassed to ask, ESG is an acronym that stands for Environmental, Social, and Governance. It’s a set of standards used by companies and investors to check how a business does good for the environment, treats people, and runs itself.
ESG started getting attention in the early 2000s and really took off after a groundbreaking study called “Who Cares Wins” was published in 2005 by the United Nations. It suggested that companies should pay attention to their impact on the planet, how they treat people, and how they are managed if we are to thrive in the modern world.
Since then, ESG has grown from being a special interest topic to a widely adopted way of thinking about how businesses should operate responsibly.
For a business to meet ESG standards, it needs to work on a few big areas:
- Environmental Care: Companies need to look at how they affect the environment. This means things like not wasting resources, cutting down on pollution, using renewable energy, and being open about how their actions impact nature.
- Social Responsibility: This is all about treating employees well and making a positive impact on society. It includes promoting diversity, ensuring workplace safety, and supporting community well-being.
- Good Management: A well-run company should have clear rules, treat everyone fairly, and make decisions that are good for both the business and its stakeholders.
Now, let’s be clear – ESG compliance isn’t something that happens overnight. It requires companies to really look hard at how they operate, make plans for improvement, and keep checking that they’re sticking to their goals. Doing well in ESG can help a company’s reputation, make it run better, and even be more successful in the long run.
Achieving ESG excellence involves a comprehensive, strategic approach – especially when it comes to environmental sustainability. At the very least, it should include the following key steps:
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- Commitment at All Levels: Successful ESG integration starts with a commitment from top management. Leadership must champion ESG values and integrate them into the company’s vision and strategy, ensuring alignment across all levels of the organisation.
- Stakeholder Involvement: Engaging with stakeholders, including employees, customers, investors, and communities, provides valuable insights into their concerns and expectations regarding ESG issues.
- Setting Clear Goals and Strategies: Based on the assessment and stakeholder feedback, companies need to set clear, measurable ESG goals and develop strategies to achieve them, such as reducing carbon emissions.
- Implementing ESG Initiatives: With goals and strategies in place, companies can implement initiatives aimed at improving ESG performance, such as investing in sustainable technologies.
- Monitoring and Reporting: Regular monitoring of ESG initiatives is crucial to assess progress and make necessary adjustments. Transparent reporting enhances credibility and allows stakeholders to evaluate the company’s performance.
- Leverage Technology: Utilising data analytics and other technological tools like Fils can enhance ESG performance tracking, improve reporting accuracy, and identify opportunities for sustainability-driven innovation.
By following these important measures, a company can not only improve its ESG performance but also enhance its reputation, operational efficiency, and long-term financial performance, positioning itself as a leader in sustainability and corporate responsibility.