As the signs of global warming become more pronounced, sustainability has emerged as an ever-more critical goal worldwide. The international business community has responded in terms of Environmental, Social, and Governance (ESG) principles.
In 2006, the United Nations-supported Principles for Responsible Investment (PRI) report first discussed ESG standards and principles, requiring that companies incorporate ESG standards in financial evaluations. In the 2010s and 2020s, ESG became a much more proactive area.
Sixty-three investment companies with $6.5 trillion in assets under management signed on early. As of March 2022, 4800 signatories from over 80 countries with assets of about US $100 trillion had signed up to the PRI.
ESG factors are an effort to guide businesses toward and measure responsible practices. But ESG is also good business. Upcoming generations – Millennials and Gen Z – are much more socially conscious than their predecessors, basing buying and investment decisions on ESG factors. But what does ESG mean in practice, and how is Dengyo incorporating ESG in its business philosophy and operations?
ESG Definitions
Environmental
The “E” in ESG is the environmental component. It refers to how an organization handles environmental impacts and risk management. It includes the level of greenhouse gas emissions a company’s activities generate, how it manages natural resources, and how prepared it is for issues associated with climate change, such as severe weather, fires, and flooding.
Social
The “S” in ESG is the social component. This element includes how an organization manages human capital, stakeholder relationships, and community impact.
Governance
Governance is the “G” in ESG. It refers to the leadership and management of an organization. Good governance aligns leadership’s initiatives with stakeholder expectations and promotes transparency and accountability in business and social matters.
Dengyo and ESG
Dengyo’s mission has always been to open up the future with radio waves.
- Using unique technology, we create new value that connects people and society, contributing to society’s progress and development.
This mission is the foundation of Dengyo’s sustainability principles and practices and informs our sustainability statement.
- We strive to resolve social issues through our business and contribute to the realization of a better society.
Read on for specifics regarding how Dengyo responds to ESG guidelines.
Dengyo and Environmental Factors
We believe developing new technology to harness radio waves can help solve environmental and societal issues. Dengyo aims to develop technology that improves how people connect and resolves medical, safety, security, environmental, and energy challenges.
Dengyo’s Environmental Actions
- In all our business activities, we take climate change into account. We promote carbon neutrality by striving for the Science-Based Targets (SBT) that seek to limit global temperature rise to 2°C above pre-industrial levels.
- We are constantly developing business activities that contribute to our goal of reducing our greenhouse gas emissions 30% by 2030 compared to 2018.
- We conduct environmental behavioral guidelines education for all employees via e-learning, including new hires and executives, achieving a 100% participation rate.
- In our operations, we have updated to high-efficiency air conditioning equipment, switched our lighting to LED, and introduced solar power generation equipment. We continue to upgrade as these technologies further develop toward lower environmental impact.
- We ask all our suppliers to agree to our Sustainable Procurement Policy, which includes regulatory compliance, human rights protection, environmental conservation, and workplace safety. Seventy percent of our suppliers have signed the policy, and we have trained 100% of our employees on responsible sourcing.
Dengyo and Social Factors
All of Dengyo’s activities respect human rights. We contribute to our community and require that every employee act with high ethical standards and integrity.
Dengyo’s Social Actions
- Dengyo’s Sustainability Behavior Guidelines state that we will respect human rights and prohibit discrimination, harassment, child labor, and forced labor.
- We share our Supply Chain CSR Procurement Promotion Guidelines with our business partners. These guidelines include human rights requirements.
- We regularly monitor our entire supply chain for negative impacts on human rights and work to prevent or reduce any we identify.
- We maintain a comfortable working environment, prohibit harassment, promote work-life balance, and provide flexibility through telework.
- We consider biodiversity in the landscaping around our offices and perform cleanup activities to keep our grounds attractive for the local community.
- When emergencies arise, we respond, contributing to re-establishing communications.
Dengyo and Governance Factors
We continually evaluate our governance factors and train our employees in relevant topics. We focus on productivity improvement to reduce overtime hours and overworking.
Dengyo’s Governance Actions
- We proactively reduce information security risks, protecting internal and confidential information.
- We manage safety in the workplace for the protection of all individuals and have an excellent safety record.
- We conduct regular education and training to enable employees to express their abilities fully and to disseminate information about respecting human rights and eliminating harassment.
- We respect employees’ labor rights, including organizing and bargaining collectively.
- We comply with all applicable laws and regulations.
- The company responds in good faith to any act that violates laws, regulations, guidelines, and internal rules.
- We promote respect for human rights and fair business activities.
- We have had no serious legal violations or information security incidents.
- We maintain an internal whistle-blowing system and a section on our website where external stakeholders can inquire about compliance.
A Few Final Words About Dengyo and ESG
At Dengyo, we strive to be conscientious stewards of the environment, treat employees, partners, and community members respectfully, and constantly improve our ESG efforts. As the world’s environmental situation evolves, we stay flexible and proactive in our initiatives. It’s not only the right thing to do. It closely aligns with our overall mission:
- Using unique technology, we create new value that connects people and society, contributing to society’s progress and development.
If you have any questions, contact us. We would love to hear from you.
- https://corpgov.law.harvard.edu/2023/03/04/esg-trends-to-watch-in-2023/
- https://www.forbes.com/sites/betsyatkins/2020/06/08/demystifying-esgits-history–current-status/?sh=168963682cdd
- https://www.bloomberg.com/professional/blog/esg-assets-may-hit-53-trillion-by-2025-a-third-of-global-aum/
- https://corporatefinanceinstitute.com/resources/esg/esg-environmental-social-governance/
- https://corporatefinanceinstitute.com/resources/esg/esg-environmental-social-governance/
- https://en.wikipedia.org/wiki/Principles_for_Responsible_Investment