Corporate responsibility is no longer something reserved for top management. It is now being pushed down and across the organization, as more companies are implementing and practicing Environment, Social, and Governance (ESG) principles enterprise-wide. Fortunately, there is a high level of correlation between ESG principles and asset management improvement programs, such as reliability engineering, criticality assessment, preventive maintenance strategies, asset health (or condition) monitoring, and risk calculation.
Organizations must consider how their daily operations and decision making ensure:
There are many strategic activities that organizations should undertake to advance ESG; however, there are key asset management elements that can be considered foundational and common to all three streams of ESG:
Weaving ESG principles into these foundational elements are crucial to ensuring that these principles are operationalized, sustained, and pervasive in an asset-intensive business. The following chart summaries how ESG and asset management elements are connected to each other:
Achieving specific ESG objectives requires multiple asset management competencies. The identification of asset management competencies necessary to achieve ESG goals is not difficult; however, assessing present state, designing roadmaps, and deploying these competencies can be challenging for many organizations. Nevertheless, the prize is great. Doing due diligence of the ESG plan and its compliance is of strategic importance; and naturally, operational effectiveness, reliability, and profitability are important to all organizations.
This level of organizational involvement can be daunting; however, it can also lead to enhanced overall performance. There are roadmaps you can follow to connect the dots between asset management and ESG objectives, making this transformation easier. Allied Reliability can help align asset management processes, systems, data, and analytics to your ESG objectives.
For more detailed information, refer to our white paper, Designing Environment, Social, and Governance (ESG) Principles within an Asset Management Framework.
Allied Reliability’s production and asset management experts are committed to optimizing equipment and processes. Our experts work with you for best outcomes. Understanding how critical asset failures impact the environment, production, financials, and safety enables us to deliver the right monitoring, analytics, decision making, and maintenance plans. We bring unique asset management content along with best practices, advanced tools, and proven methodologies to help customers move forward in their Digital Transformation journey to deliver enhanced performance.