Planet, People, Process – What is ESG?
ESG is an abbreviation you’re going to be hearing more and more of in the coming months, so it’s crucial you’re familiar with what it means. So: what is ESG?
As the climate crisis continues to rage, employees are looking to their employers for bigger scale solutions that go beyond the individual.
As this trend continues to develop, you may find ESG creeping towards the top of your agenda as a measure for your business, but before you dive in, we thought we’d share with you our simplistic way of understanding what ESG actually means.
ESG (Environmental Social Governance) broadly relates to how your business aligns with sustainability. Businesses that build ESG into their strategies will be rewarded with modern, loyal workforces, a robust system of operation, and procedures that help the planet heal.
To make it easier to understand what exactly falls into each category, we’ve turned ESG into ‘The Three Ps’, which are…
E – Environmental – PLANET
The E in ESG stands for Environmental, and our advice is to think PLANET. Your business, whether small or large, will be having an impact on the planet, such as via commuting or paper consumption.
Identifying areas to improve and reduce this impact will not only be great for the planet, but great for your business.
S – Social – PEOPLE
The S in ESG stands for Social, and this boils down to PEOPLE. Businesses would be nothing without their people Diversity, labour relations, and inclusion all form part of the Social remit.
We live in a diverse and multi-cultural world. Ensuring your people are treated equally and know you share their values fosters opportunities for teams to work in environments that they love where they feel safe. You may even notice a positive impact on retention.
G – Governance – PROCESS
The G in ESG stands for Governance. Governance relates to all internal systems, controls and processes that your business uses to manage itself and make good decisions. This is why we refer to it as PROCESS.
People often prefer to align themselves with businesses that have strong ethics and clear values. Having strong processes in place will enable you to clear the way for an attractive workplace.
Taking the first steps…
You might eventually find yourself on the receiving end of the question ‘What are we doing around ESG?’. Taking that first step is easier than you think, and we’re on hand to help. Implementing a sustainable employee benefits scheme could be an overnight solution that creates long-term improvements in your business.