What is ESG?
A wide ranging and multifaceted challenge, from managing carbon emissions and environmental stewardship, to enhancing employee wellbeing and diversity, equity and inclusion strategies, to ensuring responsible governance of people, capital and risk issues, ESG requires a coordinated and multidimensional approach to driving performance and managing risk.
Yet too many organizations take a siloed view, seeing ESG goals as a group of distinct challenges and addressing each individually. Often their results fall short of expectations because they lack some foundational elements of a good ESG strategy.
Why ESG is important to business success?
Good ESG is simply good business. It creates a sustainable tomorrow for generations to come. It brings equity to the underserved and builds resilience among the vulnerable. And it serves as the conduit for linking organizational purpose and the path to profit.
When you get ESG right, you’ll find that success builds on several fronts:
Environmental and sustainability goals
Meeting environmental and sustainability goals enables you to move beyond meeting regulators’ requirements. It helps you satisfy a range of stakeholders – employees and prospective candidates, communities, among others – and future-proof your organization.
Employee wellbeing
By committing to employee wellbeing, DEI, reskilling and upskilling, you strengthen your brand, better positioning you to attract, engage and retain top talent.
Better governance and risk management
And with good governance you ensure risks are mitigated and ESG is well executed – a virtuous cycle that unlocks further opportunity.