Organizations implement ESG (Environmental, Social and Governance) programs to build enduring business foundations, generate societal wellbeing, and motivate employees by aligning with their values.
ESG investments offer a competitive advantage, as clients, investors and prospective employees seek value in a company’s effort to do good.
ESG initiatives place sustainability, social responsibility and ethical behavior at the forefront of corporate strategy. The actions put in place as part of ESG programs are the building blocks to shift a company’s culture, workforce, and strategic mindset, and key to energizing and aligning a company’s workforce.
According to the Harvard Business Journal, corporations will need to diligently invest their resources to support the development of programs that elevate ESG initiatives to be a common practice. It is now table-stakes to showcase your company’s commitment to being socially and environmentally responsible with strong governance standards. This is what your customers, investors, and especially employees expect.
To read more about how ESG issues are affecting corporate decision making, take a look at our recent blog post: Consumers Hold The Power: How ESG Issues Impact Corporate Decisions.
The Value of ESG to Team Members
According to Great Place To Work, “Giving employees a clear connection to something important – a purpose that is bigger than an individual role – is an important factor in an organization’s success.”
ESG initiatives contribute to creating a culture that aligns with team members’ personal values. To connect the investments that are being made into these initiatives with accurate perception, organizations need to effectively communicate about the investments they are making that align with ESG goals, both internally and externally.
According to Infogrid, “Promoting ESG in the workplace can boost employee productivity and wellbeing, attract and retain talent, and help build your reputation as a top employer. That, in turn, will help you reinforce your ESG performance. And crucially, it will help you to drive your business growth.”
- Employee Retention: “41% of employees would be more likely to stay at a job if their employer had a commitment to low emissions.”
- Company Desirability: “Similarly, research by MarshMcLennan, attractive employment destinations tend to have lower carbon emissions, more diversity, and a greater concern for employee wellbeing.”
- New Talent: “Millennials are expected to make up 75% of the workforce by 2030. The so-called “values generation” will soon make up the vast majority of the workforce. When their work life is thought to be more determined by their ethics, ESG will likely matter more than ever.”
All information and statistics pulled from Infogrid.com
ESG Efforts Improve Company Performance
Corporate citizenship, or your organization’s part in ESG work, can develop a unique relationship with company stakeholders and consumers that can improve how your company performs.
“In March 2022, Merrill Lynch issued a report to its investors on the importance of the S in ESG, in which it asserted that because social factors underpin the key inputs to economic growth, managing and monitoring social indicators has never been as important as it is today.”
Simultaneously, an organization’s focus on ESG is directly linked to its public reputation. Consumer decisions and sentiment are critical markers that demonstrate a company’s or product’s appeal. For those investing in ESG, reports suggest that consumers are more likely to purchase a service or product from a company or even regard a company positively.
“In fact, according to the 2021 Porter Novelli Purpose Premium Index (PPI), “73% of consumers say [that] to win their support, companies must show how they are supporting communities and the environment.”
Build Authentic ESG Goals That Align With Corporate Purpose
There are three ways your company can establish an ESG strategy that is authentically aligned with your company mission.
- Building programs around brand values – Define vision, values and goals that create a path to authentic impact you can be proud to share with the world.
- Activating employees, partners, and stakeholders – Deploy the technology and process to engage your audience, inspire action and collect impact data.
- Crafting compelling, authentic narratives to share the mission – Close the gap between your investments in ESG and what your customers and employees believe your values to be. Actions can only speak louder than words if you share your story.
For guidance on how to draft your own ESG strategy, click here and download our Best Practices for ESG Content resource guide. This guide will demonstrate how your organization can produce impactful content that encourages team members to think critically about ESG, and even communicate your company’s ESG performance to a broader audience.
Consumers Hold The Power: How ESG Issues Impact Corporate Decisions
October 24, 2022
Hard Truth Consulting
May 31, 2022