Around the world, investors, employees, customers and activists expect organizations to transform their operations around a pressing priority: environmental, social and governance (ESG) sustainability.
To satisfy these stakeholders, organizations are striving to become sustainable at their core. This means leaders should articulate their organization’s purpose, agree on ESG commitments, initiate a culture change that embraces sustainability, invest responsibly and seek out suppliers that align with their goals. To hold leaders accountable, some organizations are embedding sustainability into the business scorecard and tying compensation to ESG results, with a growing focus on social sustainability. They’re setting reportable goals and tracking their progress on sustainability.
Environmental sustainability is widely known, and many organizations are already working to reduce their carbon footprints. For the governance facet of ESG, executives are watching out for risks and adhering to regulations.
Now, social sustainability is taking centre stage as stakeholders expect employers to take better care of their workforces and tend to their people’s financial, physical and mental health. This extends to fair treatment of external workers and alignment with responsible supply chain partners.
Conscientious organizations are taking immediate, bold and sincere action to move the needle on sustainability goals. And it’s paying off as they gain a competitive advantage, increase sales, lower costs, and attract and retain critical talent.