3 Areas to Improve ESG in Your Company
ESG should be a primary focus for all company executives. These days, you must be aware of your ESG performance. The public has become more in-tune with this area, and many of the issues surrounding it are taking center stage on the global platform.
Consequently, you should look to improve ESG measures in your company. You can start by looking at these three areas:
Create a sustainability strategy
To tackle the E (environmental) part of ESG, you can start by creating a sustainability strategy. Be aware that your business will probably have a significant carbon footprint. Most companies do, which is why you need a strategy in place to combat this.
Do a full audit of your business and work out where the majority of your carbon footprint comes from. You may find that specific operational procedures are causing the biggest impact. In this case, you can work on developing solutions to make these greener. Implement policies throughout your business to reduce your carbon footprint by encouraging employees to follow certain rules. A simple example of this is a strict recycling policy. Ensure you recycle as much as possible and avoid generating lots of waste to go to landfills.
With a sustainability strategy, you have a clear path to tackle your environmental impact and keep things as green as can be.
Address Your Supply Chains
Your supply chains are a pivotal area of ESG improvement. You need to pay close attention to who you’re dealing with. Our advice is to conduct an investigation into your suppliers – with an emphasis on human rights. This helps to deal with the social aspect of ESG and can improve your ESG performance.
In essence, you want to ensure that your business doesn’t get into bed with companies that exploit human rights. Check their processes to be certain that everything is above board, and that your suppliers are paying their workers properly. If this isn’t the case, then you either demand things change or take your business elsewhere.
Create a Statement of Purpose for investors
To improve the governance side of ESG, you should start changing your approach to investors and shareholders. We spoke about this in a previous post about managing ESG, and the main concept is that you create a Statement of Purpose to show investors.
This statement shows how your business intends to impact the wider society. What goals do you set in terms of how you want to shape the world around you? Most shareholders care more about this than the money you make. It’s all about realizing how you want to impact the world and what steps you’ll take to bring positivity to society. Investors will then see if you align with their own beliefs, which can help you secure more funding to achieve all of your goals.
It’s important to always measure your ESG performance to see how things are going. We advise you to look at things right now, then improve on the three areas displayed in this article. Then, measure your performance again, and you’ll be amazed at how much better it is.