ESG, why it is important for your company to have a a sustainability rating

Guest post by Tee Ganbold, CEO and Founder of OpenESG:

In the modern corporate landscape, the buzzword “sustainability” has made significant waves. Yet, a closer look reveals a troubling discrepancy: a mere 50% of publicly listed companies carry an ESG score, a critical indicator of their environmental, social, and governance commitments. Zooming out on a global scale paints an even bleaker picture: a minuscule 0.04% of all companies possess a sustainability rating. These numbers sound alarms, hinting at a larger systemic problem where sustainability initiatives might be more of an exception than a norm. Amidst this backdrop, OpenESG emerges as a cutting-edge solution, dedicated to transforming the way we perceive, rate, and implement sustainable practices.

ESG, does your company have a a sustainability rating?

Legacy ESG systems, despite their noble intentions, have often missed the mark in driving true sustainability. Their focus, regrettably, has been misdirected. These systems frequently stress the potential risks ESG factors may impose on a company’s financial bottom line. Whilst risk mitigation is crucial, it’s equally, if not more, essential to highlight a company’s broader role in impacting the environment, society, and corporate governance norms.

This skewed focus has, inadvertently, opened the floodgates for greenwashing, allowing companies to masquerade superficial sustainability gestures as genuine efforts. As a result, both consumers and investors find themselves wading through a murky pool of misinformation, endeavouring to discern genuine green initiatives from mere marketing ploys.

Here’s where the OpenESG platform distinguishes itself. Its hallmark is an unwavering commitment to transparency and authenticity. Gone are the days where companies could effortlessly weave a green narrative without substantive actions to back it. OpenESG, with its radical transparency ethos combined with a meticulous blend of self-reported data and diverse data sources, stands as a formidable vanguard against greenwashing. But the platform’s merits don’t end at stringent rating processes. It serves as a champion for businesses genuinely striving towards a greener future, spotlighting their efforts and innovations.

By expanding the spectrum of rated companies, OpenESG is instrumental in introducing a new era of accountability, even in sectors that have traditionally remained opaque. Simultaneously, for consumers navigating a sea of corporate claims, OpenESG offers a lighthouse. It provides tools and insights that empower individuals to make informed choices, aligning their spending and investment with companies that truly walk the talk. The bedrock of this transformative platform?

A decentralised, dynamic Expert Council that tirelessly works to maintain and elevate the platform’s accuracy and integrity. Beyond ratings, OpenESG’s vision extends to creating an ecosystem where every stakeholder feels valued. This means that the unsung heroes of sustainability, from diligent supply chain managers ensuring ethical sourcing to visionary CEOs driving green innovations, are acknowledged and celebrated. In this ecosystem, sustainability isn’t a mere department or an annual report section; it’s woven into the very DNA of business operations.

The role of the consumer in this sustainability renaissance can’t be overstated. OpenESG recognises this pivotal role, offering consumers an amplified voice. By streamlining company comparisons based on personalised sustainability criteria, the platform empowers consumers to champion businesses that resonate with their ethical and environmental values. In a digital age teeming with information, OpenESG emerges as a trusted curator, directing consumers towards enlightened choices and ensuring companies stay true to their sustainability pledges.

In today’s globalised world, where reputations can be made or broken in the duration of a tweet, trust stands as the most valued currency. OpenESG is meticulously carving a niche in this arena, bestowing trust back into ESG metrics. Companies that proudly flaunt sterling ESG scores, curated through OpenESG’s rigorous standards, are poised to witness a reputation surge, captivating discerning customers, prudent investors, and the brightest talents in the industry.

In its essence, OpenESG dreams of a world where businesses lead the charge towards an equitable, sustainable future. By furnishing the right tools and incentives, OpenESG is unlocking the latent transformative power nested within businesses. As we sail through the complexities of the 21st century, platforms like OpenESG illuminate our path, beckoning businesses to not only flourish but to redefine success by intertwining it with responsibility.

With its deep-seated values of authenticity, trustworthiness, and inclusivity, OpenESG is not just setting new standards; it’s envisioning a future where ethical business isn’t the exception but the norm.

More about Tee

Tee Ganbold is Co-Founder and CEO at OpenESG, a generative AI for a sustainable future for everyone (B2B SaaS). She was Co-Founder and CMO of Clear AI, optimizing supply chains for sustainability (B2B SaaS).

At Clear AI, realized that for most companies the non-financial data just didn’t exist – while listening to so many corporates frustrated that the current ESG systems which are very manual, closed and expensive to understand whether their suppliers are sustainable or not. The friction exists for everyone: investors, corporates, SMEs and consumers. This experience led her to the realization that the time is now to build the sustainability data infrastructure for her generation – build around the principles of openness and AI – and co-founded OpenESG.com in 2022 to create it.

Prior to Clear AI, Tee carried out global business operations roles for the solutions team at ConsenSys, a blockchain venture studio focused on building decentralised applications on Ethereum, and Cambridge Analytica, a data science consultancy.

Tee has been working towards a global sustainable vision at 20 (in 2014) when she wrote her thesis in alternative energy and founded her first sustainable brand company at 23 (in 2016).

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