ESG is an essential part of modern governance and ESG training for directors and board members is now available and affordable. As ESG takes centre stage in c-suites and boardrooms, you can now up skill by taking the Diploma in ESG.
ESG is modern governance in action
It’s no longer a nice to have. It’s now necessary that your board has the training and skills to understand and embrace new corporate responsibilities in the face of the ongoing climate crisis.
Investor focus is one of the most prominent drivers of the new demands for practical ESG strategies.
Currently, 64% of board members think their corporate strategy is linked with ESG issues, but only 29% understand the risks.
Are you equipped to oversee climate risks?
The demand for thorough ESG knowledge is increasing and for a good reason. If you are a board member, you are likely feeling the pressure of this already.
Here’s the current situation:
- As climate risks increase, your board must understand what they’re facing and how they can better navigate the challenges. It’s no longer enough to call in a consultant
- Your board must be able to understand and embrace the challenges, as they offer real-world insight into the best way for your company to move forward
- Your board must have the internal capacity to understand what’s happening to meet the enormous demands
- Your board must also make predictions based on a deep level of expertise
Are you prepared for a multi-faceted ESG approach?
Any strategic approach to ESG will create more demands as time passes, and your board needs to be prepared to give everything to meet them. This means balancing the need to up skill your team with fulfilling your ESG obligations.
It may be one of the most comprehensive initiatives you’ve undertaken to-date.
Find key employees to collect data and initiate reporting
It may be that you luck out, and your team already has the skillsets for data collection and ESG reporting. More often, you’ll need to enrol these individuals in online courses to ensure they gain the correct knowledge and deliver the metrics you need.
For key individuals, consider sponsoring a further study with the Fundamentals of Sustainability Accounting (FSA) certification. This involves several exams to demonstrate proficiency. The certificate is also a great way to reiterate your company’s dedication to its ESG goals and demonstrate the level of expertise you have to fulfil them.
Use your ESG knowledge base
As soon as your colleagues have a foothold in ESG and reporting, they can more readily access that knowledge and expertise. You can even pair board members with specific staff for regular check-ins and knowledge sharing. This collective approach ensures that your staff can use their knowledge to the maximum and be recognised for doing it.
Essentially, it’s a mentorship approach. It enables your board to learn about ESG in a way that’s most accessible and relevant to your business. It also lets you expand into other areas to ensure everyone on your team has a fully integrated understanding of what the goals are.
By sharing this ESG knowledge, you’re encouraging collaboration between your staff and board members, which will help break down the barriers that often seem to develop between the two groups. You can make knowledge sharing, data collection, and reporting a natural part of the relationship. So, everyone’s time is being well-spend and optimally used.
Bring on ESG-ready board members
You may already have board members familiar with ESG initiatives, but if you don’t, seek them out. They will enhance your efforts.
To find individuals with the knowledge and expertise you need, you can look for executives who have already demonstrated their interest and passion for the work.
Even when you know you want a new ESG candidate, making that happen is not an easy task.
Their skillset may not precisely match what you want; they may not be interested in investing time in your board. Or, on the other hand, you may not currently have an opening and therefore need to wait for the next transition of board members.
Nevertheless, finding the right candidate is what stakeholders want.
Investors want to know that the company is making decisions based on the best expertise available and reporting up to top standards. Without on-staff and on-board point persons with ESG knowledge, it’s easy to see how misunderstandings could affect a company’s bottom line.
Click on the image below to discover more about ESG training and the Diploma in ESG.