Sustainability and ESG can seem like another language and world away from running your own organisation – however much of what is needed is already happening in your business and may simply need a little more focus. Following are 10 bite size explanations of what you can focus on to improve your knowledge, and your ability to create change around your environmental and social impact.
OVERVIEW
1) Make a commitment to learn, understand and become accountable for your environmental and societal impact (before regulations make you). In all that we do as people and as leaders building organisations, usually with an aim to be financially stable and to make a profit – the knowledge that we have a direct say in the level of environmental and societal impact of our business is both challenging and empowering.
ENVIRONMENT
2) Measure consumption – know the amount of water, power and waste your business has under its control – environmental impact is better understood once you understand your numbers
3) Carbon Footprint – whilst ESG is not all about carbon, it has become a standard measure for an organisation to understand and measure. Scope 1 – your facilities, Scope 2 – your energy source and consumption & Scope 3 – your full value chain, those you procure from and your product and services end of life
4) Environmental Management – Now you understand your water, power, waste and carbon – you can make a plan for its management and reduction. Engaging with your Supply Chain will be key as a part of this process
SOCIETAL
5) Employees – One of the biggest impacts you have in society is how well you treat and empower your employees. How complete are your HR handbook and people policies? Do you have a fair salary and package structure? What opportunities do employees have to provide feedback and be involved in organisational decision making?
6) Customers – It’s always a pleasure to deal with clients who prioritise customer service. Do you have good customer processes? Are customers engaged with your organisation and is it easy for customers to provide feedback? Can customers easily fund the information they need about your organisation because you are transparent and public in your information.
7) Community – How do you engage with your community? Do you offer your employees volunteer days? What proportion of your revenue do you give to charitable causes? Do you try and buy and hire locally to support the community where your organisation is based?
GOVERNANCE:
8) Mission and Engagement: Is Sustainability & ESG a part of your business purpose? How? Who signs off? Is a commitment to your environmental and societal impact covered in your organisation’s legal structure? Do you engage with all stakeholders in your organisation and understand what is material to them about working with you?
9) Ethics & Transparency – How strong is your governance and your internal structures? Do you have an ethics policy and how do you put it into practice? How publicly transparent is your organisation about what you do and how you do it?
10) Governance metrics – What are your high level E&S goals? Are they SMART? Are they embedded and evidenced within your business?
Some things will be simple, some will take a little more effort, however there is much guidance and support to help you find your way – you just need to begin!
