As the grow of popularity of sustainability linked loan (SLL), more companies are considering to adopt ESG initiative through such funding. Though the SLL aim to facilitate and support environmentally and socially sustainable economic activity and growth, the selection of indicators for monitoring and validating individual applicant’s ESG improvement became significantly importance. ESG is about change of behavior in people, business and society for sustainability, so we have to keep track of changes with relative sensible data update frequency and recommendations. Therefore, the indicators should be accountable, actionable and apprehensible.
Accountable – Keep tracking and help companies to continuously improve its ESG behaviors ;
Actionable – Easy to kick off with a reasonable baseline of ESG model with action plan for continuously improvement to reach end goals;
Apprehensible – indicator has to be understandable and comparable within industry.
Last but not least, it about affordable plan so SMEs has no excuse to say NO for action.