Eighteen years ago, environmental, social, and corporate governance (ESG) was a new idea – merely an initiative proposal in a UN report. Now, it’s a different picture entirely.
ESG-related assets and initiatives are expected to climb beyond $41 trillion in 2022, according to figures released by Bloomberg – a further signal of the ever-intensifying worldwide belief that companies should expand their focus towards the people and environments around them, not just revenue.
Because of this, it is essential that every company knows the concept of ESG, understands what it means, and realises the responsibilities that come alongside it. This journey begins with the right strategy.
In short: a blueprint for navigating an extremely broad area of governance.
ESG is rarely about profit, but it is about almost everything else; the way a company runs, the way it treats its workers, the way it interacts with the market, and the impact it has on society. It can be a lot to process without a structured approach, fuelled by experience and good research.
An ESG strategy will provide guidance around three core pillars: environmental protection, embracing social issues, and ensuring the company is run in the right way. It will offer your organisation clarity for fulfilling climate obligations, operating sustainably, safeguarding employee welfare, and managing the integrity of internal systems and processes.
It will also offer insights on the right diversity policies within your organisation, human rights, animal welfare, and consumer protection.
In short, an ESG strategy – if done correctly – will offer one of the most important roadmaps that your company will depend on.