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Companies are more concerned about environmental, social and governance (ESG), factors than ever. They want to do more than just operate. Sustainable. This is partly due to a genuine sense organizational accountability, but also because customers are showing their appreciation. A preferenceCompanies that help to protect the environment.
In just three easy steps, you can bring ESG into your company vision and transform your business.
Related: 5 Big Mistakes Companies make when tackling ESG
1. Make sure you are ready to commit
It’s easy to do. Say it You are going to be an ESG business. Greenwashing, where you claim that you will do great things for the environment or society but never actually do, is not common. If you greenwash, people will hold your hands accountable. At the COP26 sustainability conference there were protestors pointing to how much greenwashing has been and demanding an end.
So, dig in. Are you? It is reallyAre you willing to put your heart and soul into this? Are you ready to incorporate these core values into your daily operations and make them a part of what you do? Only move forward when you know you can give 100%.
When you are weighing whether it is worth the effort, don’t underestimate the impact of putting your company’s vision and operations under a different lens on someone’s satisfaction with your work and your business. My company put 50 of its top employees through a sustainability program. One of our remote sales managers stopped me in the hallway afterward. He said that he feels like he is electrifying America and saving our planet. This was not just about selling commercial vehicles. He said that he now feels purposeful in his work.
Ask yourself how can you connect your people with the vision and tap into what drives them. If employees are passionate about what you do, they will be more productive, more efficient, more visible, and more responsible. They will be more creative and innovative in coming up with new, transformative ideas and implementing them. They’ll be able to do it all faster than if they don’t enjoy the work and see its impact. On the customer side, if your customers are truly connected and excite you, you can rethink your approach to attracting people to your company and increase your audience.
Related: ESG Reporting could be your next winning move
2. Each of the E, S, or G can be broken down individually
Each of the three ESG arms works together and connects to help your business move forward with sustainability. But they are not synonymous. To ensure that your approach is balanced, you need to be specific about each area. For example, you could declare that your goal is to become carbon neutral in 2030. Social could be a declaration that 20% of your revenues will go to community programs. You could make specific documents about your company public to show regulatory transparency. It will help you, your team and the public to hold your business accountable by clearly defining the goals in each category.
In order to achieve your goals, you should always be adding targets and moving through each category. There is also a lot To work on. Have you conducted a gender equity review? How many people come from diverse backgrounds are on your board or team? Are you paying everyone based upon performance? These areas are now the focus of mandates. They are also being enforced by more people. California is an example. SB 973, California Government CodePrivate employers with more than 100 employees must now submit a pay data analysis to identify any pay discrepancies.
It is important to realize that your business may not be the same as other businesses. You might not be able to do everything in each category at the same time. It’s okay to be specific and set goals that are appropriate for you and your situation. As long as you continue building on and setting new goals, it’s okay. You can be very honest about the ESG promises when you do this. DoAvoid greenwashing that can damage both reputation and trust.
Related:Are you making these 5 Common Mistakes ESG Investors Make?
3. You can create small, clear steps that you can take to reach your goals for each category.
Once you have set your category targets, you need practical methods to reach them and keep people on track. It is important to determine what you must do to reach your goals. Break it down into small, achievable steps that are easy for everyone to understand. If I take the example of my company and combine it with the goal to be carbon neutral within five years, I might say that the first small step would be to make 20% of our 100 vehicles electrified this year. The next step would then be to convert another 20% in the following year.
Make your ESG move today to stay competitive
The negative effects of Not ESG will be a part of your vision depending on the expectations your company has and what type of company you are. If you don’t disclose where your labor or supplies are coming from, customers might abandon your brand. Your market share could shrink if they buy from more progressive brands. But if youre more business-to-business, the big hit could come in the form of investment dollars. Investors want to see your sustainability efforts so if you aren’t doing enough, you might not be able to get the funding you need.
ESG is growing as people desire transparency, ethics and climate influence. Will Your ability to compete is affected and you cannot do it halfway. You must be 100% clear about your goals and what you intend to achieve. Use a personalized approach to set realistic goals and build on what you have already accomplished. Don’t look back.