If you’re a business owner in Yukon, then chances are you’ve heard about ESG and sustainability reporting. But what exactly is it? What are the benefits of reporting? And what do you need to know to get started? Keep reading to find out everything you need to know about ESG and sustainability reporting.
Put simply, sustainability is about meeting the needs of the present without compromising the ability of future generations to meet their own needs. Reporting on a company’s ESG practices is quickly becoming the norm for businesses around the world. Private companies in the Yukon are no exception, ESG reporting is not only encouraged but soon may become mandatory. Here’s what Yukon business owners need to know about ESG reporting and sustainability.
- What does ESG reporting mean for Yukon companies?
- Is ESG reporting mandatory in Canada?
- What are the benefits of reporting for Yukon companies?
- Why does this matter for private Yukon companies?
- What Does Sustainability Look Like in Practice?
- How is the Yukon acting sustainably?
What does ESG reporting mean for Yukon companies?
ESG reporting is the practice of measuring and disclosing a company’s environmental, social, and governance performance. This type of reporting provides investors with information that goes beyond a company’s financials to give them a more complete picture of a business’s risks and opportunities.
Does ESG apply to private companies in the Yukon?
In June 2019, the Canadian Securities Administrators (CSA) released guidance encouraging all listed companies to disclose their climate-related risks. The CSA has also indicated that it is considering whether to make disclosure of climate-related risks mandatory for all issuers, including private companies. In light of this, it’s advisable for all Yukon businesses to start thinking about how climate change could impact their operations and begin disclosing their risks accordingly.
Is ESG reporting mandatory in Canada?
At this time, there are no federal laws or regulations mandating the disclosure of sustainability information by Canadian companies. However, this could change in the future as pressure builds on businesses to be more transparent about their environmental and social impacts. In addition, many institutional investors are beginning to request this information from the companies they invest in as they seek to align their portfolios with their values. For these reasons, it’s important for companies to keep abreast of developments in this area and be prepared to comply with any new regulations that may arise. This is not only good for their key stakeholders but also a plus for their financial performance.
What does the Yukon Superintendent of Securities have to do with sustainability?
The YSC supports sustainable development by promoting corporate responsibility disclosure among market participants and working with other regulators to develop consistent disclosure standards for environmental and social issues. The YSC also offers educational resources on sustainability issues for Investors, issuers, and market intermediaries operating in the Yukon securities market.
What are the benefits of reporting for Yukon companies?
There are a number of benefits associated with ESG reporting. For starters, it can help businesses save money. For example, by tracking their energy use, businesses can identify areas where they can make changes to become more energy-efficient and reduce their costs. In addition, ESG reporting can also help every company’s ability to attract investment, build trust with consumers and employees, and boost continuous improvement in its overall operations.
What You Need to Know to Get Started
If you’re interested in starting to report on your company’s ESG performance, there are a few things you need to know. First, you’ll need to gather data from throughout your organization on topics like greenhouse gas emissions, environmental impacts, employee satisfaction, charitable giving, sustainable investing, etc. Once you have this data, you’ll need to choose a reporting framework that best suits your needs. There are a number of different frameworks available to disclose your sustainability report, so be sure to do your research before making a decision. Finally, once you’ve gathered all of your data and chosen a framework, you’ll need to start writing your sustainability report. Remember to utilize all the key tools and weigh in the ESG considerations to create a report that is transparent and provides you with a competitive advantage in the eyes of your consumers as well as the capital markets.
What are the Sustainable Development Goals (SDGs)?
The SDGs are 17 goals set by the United Nations in 2015 with the aim of achieving a more sustainable future for all. They cover a broad range of topics such as poverty alleviation, climate change mitigation, gender equality, etc., making them an ideal framework for those interested in reporting on their company’s sustainability performance.”
Find your Province or Territory
Why does this matter for private Yukon companies?
Because sustainability is no longer just an ethical consideration, it makes good business sense. Customers, employees, and investors are all increasingly interested in working with and supporting companies that have a positive impact on society and the environment. What’s more, sustainable businesses tend to be more resilient to external shocks and have better long-term prospects.
As a business owner, you may be thinking that all of this sounds great in theory, but you’re not sure where to start. Don’t worry – we’ve got you covered. Read on for a brief overview of what sustainability looks like in practice, as well as some practical tips on how you can make your business model more sustainable.
What Does Sustainability Look Like in Practice?
There are many ways to make your business more sustainable, but there are three key areas you should focus on reducing your environmental impact, improving your social impact, and adopting better governance practices. Let’s take a closer look at each of these in turn.
You can’t improve what you don’t measure.
Free Verified Carbon Calculators.
Reducing Your Environmental Impact
The first step to reducing your environmental impact is to identify the key areas where you use natural resources or generate waste. Once you have identified these areas, you can start working on ways to reduce your consumption or find more efficient ways to dispose of any waste products. Some common examples include:
- Implementing energy-saving measures such as installing solar panels or LED lighting
- Reducing water consumption by installing water-efficient fixtures or using greywater recycling systems
- Cutting down on waste by implementing a composting program or ditching disposable packaging
- Switching to environmentally friendly cleaning products or office supplies
- Offsetting emissions from business travel by investing in carbon offsets
Of course, this is just a small sample of what you can do – the possibilities are endless! The important thing is to start taking action and making a difference, however small.
Improving Your Social Impact
In addition to reducing your environmental footprint, it’s also important to focus on improving your social impact – that is, the direct and indirect effects your business has on people’s lives. There are many ways to do this, but some key areas to focus on include:
- Providing fair wages and good working conditions for employees
- Supporting local communities through initiatives such as local sourcing or community partnerships
- Promoting diversity and inclusion within your workplace
- Acting ethically in all business dealings and avoiding exploiting vulnerable communities
- Giving back through corporate philanthropy or pro bono work
Like reducing your environmental impact, there are many other ways to improve your social impact – it all comes down to finding what works best for your business and taking action.
Adopting Better Governance Practices
Good governance encompasses everything from ensuring compliance with legal and regulatory requirements to managing risk effectively. As a sustainable business, it’s important to consider the implications of your actions not just on the environment and society, but also on shareholders, customers, and other stakeholders. Some key areas to focus on include:
- Communicating openly and transparently with all stakeholders about your sustainability efforts
- Incorporating sustainability into strategic decision-making
- Adopting responsible marketing practices
- Managing environmental and social risks effectively
- Reporting regularly on progress toward sustainability goals
Investing in sustainability pays off not just for society and the environment, but it’s also good for business. Sustainable businesses tend to be more profitable and resilient in the long run, so making sustainability a priority now will set you up for success in the future.
How is the Yukon acting sustainably?
In terms of renewable resources, the Yukon has an abundance of hydroelectric and wind power. In fact, the territory gets more than 60% of its electricity from hydropower – one of the highest percentages in Canada. With an average wind speed of 15 km/h, the Yukon also has great potential for harnessing wind power. In terms of sustainability, these renewable resources are a key part of why the Yukon is such a great place for businesses.
Another key factor that makes the Yukon sustainable is its small population. With a population of just under 40,000 people, the Yukon has a very small ecological footprint. This means that businesses in the Yukon have less of an impact on the environment than businesses in other parts of Canada with larger populations. When it comes to sustainability, this smaller ecological footprint is a major benefit of doing business in the Yukon.
There are many ways in which the Yukon is working to stay sustainable. One of the most important ways is through the tourism industry. The Yukon government has made it a priority to develop and promote eco-tourism in the territory. This type of tourism focuses on minimizing the negative impact that tourists can have on the environment.
The Yukon government has also put into place a number of renewable energy initiatives. These initiatives are aimed at reducing the territory’s reliance on fossil fuels and ensuring that the Yukon has a clean and green energy supply. One of the most notable projects is the Whitehorse Hydro Expansion Project, which will see the construction of a new dam and hydroelectric power plant on Canada’s longest river.
In addition to these initiatives, there are also a number of programs in place to help residents reduce their impact on the environment. These include things like recycling programs, composting programs, and energy efficiency rebates.
In conclusion on sustainability in the Yukon…
As awareness of environmental, social, and governance (ESG) issues grows, so too does the pressure on businesses to disclose information about their ESG practices. While there are currently no federal laws mandating the disclosure of sustainability information by Canadian companies, this could change in the future. In light of this, it’s advisable for all Yukon businesses to start thinking about how climate change could impact their operations and begin disclosing their risks accordingly. For more information on ESG reporting and sustainability, please get ahold of us at ESG The Report.
What is corporate sustainability reporting?
Corporate sustainability reporting (CSR) is a process through which companies communicate their efforts to address ESG issues. Most companies produce annual sustainability reports covering various topics, from energy use to employee diversity. It provides transparency into how a company is managing ESG issues throughout its value chain. CSR helps to improve corporate governance, create positive environmental and social impacts, and drive financial performance. In addition, by shining a light on social justice issues within the supply chain, CSR can help businesses make positive changes that benefit both people and the planet. Despite its benefits, CSR remains voluntary for most companies. However, those that do report are well positioned to meet the challenges of sustainable development.
How does sustainability impact economic development?
The economic development impacts of sustainability can differ depending on the country or region. For example, a nation with an abundance of raw materials may see positive impacts from implementing sustainable practices, as this can create long-term value around the materials. Alternatively, a nation that is required to import all of its basic materials may see negative impacts, as it can double the costs in some cases. Sustainability also has potential negative impacts on employment levels in certain sectors, as sustainable practices often require less labor.
What do you mean by First Nations Governments?
First Nations governments are the governing bodies that represent the First Nations people of Canada. These governments are responsible for managing the affairs of the First Nations communities, including issues such as land management, education, and healthcare. First Nations governments have a unique relationship with the Canadian government, which is based on treaties and agreements that date back centuries. This relationship is often referred to as the “Indigenous-Crown Relationship.”
What is financial materiality?
Financial materiality is a concept used in accounting that refers to the importance of an item in relation to a company’s financial statements. For example, items that are considered material are those that would have a significant impact on the decision-making of a reasonable person relying on the financial statements. In contrast, items that are considered immaterial are those that would not have a significant impact on the decision-making of a reasonable person relying on the financial statements. Double materiality is a concept used in auditing that refers to the consideration of both quantitative and qualitative factors when determining whether an item is material.
You might also read…
Dean Emerick is a curator on sustainability issues with ESG The Report, an online resource for SMEs and Investment professionals focusing on ESG principles. Their primary goal is to help middle-market companies automate Impact Reporting with ESG Software. Leveraging the power of AI, machine learning, and AWS to transition to a sustainable business model. Serving clients in the United States, Canada, UK, Europe, and the global community. If you want to get started, don’t forget to Get the Checklist! ✅