Environmental, Social & Governance (ESG)
What is ESG?
ESG refers to specific standards that outline a company’s behaviors regarding its commitment to transparent, socially conscious, and sustainable business practices. ESG stands for environmental, social, and governance.
Beginning in the 1960s, this stakeholder-centric approach to conducting business has evolved to address growing changes in modern business practices. ESG as we know it today is based on the principle that environmental stewardship is only one of several factors demonstrating a company’s commitment to sustainability and ethics. As food insecurity, droughts, and rising temperatures persist, there are also new concerns due to mass migrations, increased regulations, and technological advances threatening data privacy and security.
These ongoing and emerging risks have only been exacerbated by COVID-19 pandemic-induced economic pressures, which have increased some industries’ exposure to ESG risks. This means companies also face greater scrutiny if they don’t effectively manage ESG factors.
Dedicated Computing’s focus on ESG
The impacts of climate change have ignited global attention, with environmental, social, and governance (ESG) initiatives becoming a key driver for improving the ways companies do business. Environmental practices, in particular, focus on building a circular economy (such as by reducing, reusing, and recycling packaging waste), reducing carbon footprint, and complying with environmental initiatives designed to eliminate the use of slave labor or the support of conflicted areas like the DRC.
Other benefits and areas of focus when establishing ESG initiatives include:
01
Warranty Services
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Repair Services
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Specialty Services
Compliance with ESG initiatives opens the door to continued and future business with ESG-conscious customers. At Dedicated Computing, our ESG practices are designed to increase innovation while promoting sustainable success. We also educate and align our supply chains to make similar ESG choices, which has a domino effect on reducing waste and the impact of climate change.
Learn more about ESG factors and how Dedicated Computing is committed to sustainable, ethical innovation through our own ESG initiatives.
Environmental Factors
Environmental criteria take into account the actions a company takes to safeguard the environment and may include the following factors:
- Corporate climate policies
- Natural resource conservation
- Waste management and recycling/
circular economy strategies - Compliance with environmental
regulations
- Energy use
- Pollution production
- Direct and indirect carbon emissions
- Adopting renewable energy
According to a United Nations Intergovernmental Panel on Climate Change report, human influence is responsible for the warming of the planet, and some types of changes to our climate are either irreversible or will be permanent for centuries to come. This is a wake-up call for large corporations and government entities to reduce and eliminate reliance on fossil fuels.
Social Factors
Social criteria consider how a company manages its relationships with suppliers, customers, employees, and the communities where it does business. A company’s social responsibility may consist of various factors, which include:
- Corporate ethics
- Community focus
- Ethical, sustainable supply chain management
At Dedicated Computing, our HR department and employee handbook promote fair working conditions and labor rights. HR and sourcing also work together to manage ethical supply chains.
Our teams draw on a wide range of experiences to identify unique solutions and drive better outcomes. As a workplace, we prioritize respect and opportunity for all – resulting in higher engagement and stronger loyalty.
Through our community outreach initiatives, we support community engagement and philanthropy—efforts that make our company a great place to work and our communities a better place to live.
Governance Factors
Governance criteria address a company’s behaviors regarding audits, executive pay, shareholder rights, and internal controls. ESG governance standards ensure a company follows the following practices:
- Uses transparent and accurate accounting methods
- Held accountable to stakeholders
- Pursues diversity and integrity in selecting leadership
Governance initiatives may prevent companies from using political contributions to obtain preferential treatment, conflicts of interest in choosing senior executives and board members, and illegal conduct.
By establishing strong corporate governance practices, companies can maintain anti-corruption practices and conduct ethical business. At Dedicated Computing, our business continuity plan (BCP), ISO certification, IT/anti-fraud department, and regular audits help us conduct robust risk management and comply with all relevant regulations.
Overcoming Challenges
& Obstacles
Common challenges and obstacles in implementing ESG practices include:
- Data Quality & Availability
- Defining Clear & Consistent Criteria
- Integration With Business Strategy
- Limited Resources
- Regulatory Uncertainty
- Short-Termism
- Supply Chain Complexities
In many cases, corporate issuers are finding that while certain ESG metrics may matter to one company, they may be unimportant to another. Boards are increasingly referring to organizations such as EcoVadis for ESG Sustainability ratings tailored to their specific industry and business size.
To overcome these challenges, Dedicated Computing implements strategies for managing resistance and fostering buy-in. We also leverage partnerships and collaborations to further our ESG goals. Continuous improvement and adaptation to evolving ESG trends are crucial for organizations’ environmental sustainability, social responsibility, and fair governance.
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Dedicated Computing is committed to ESG Integration
An organization with effective ESG policies performs well in all three environmental, social, and governance areas while limiting costs. They also have a long-term plan for generating profits sustainably.
At Dedicated Computing, our ESG initiatives are designed with these goals in mind. In addition to developing advanced computing platforms for equipment manufacturers around the world, we do so with ESG practices in place, promoting sustainable, ethical innovation that positively impacts people beyond the products we create.