Around the world, investors, employees, customers and activists expect organisations to transform their operations around a pressing priority: environmental, social and governance (ESG) sustainability.
To satisfy these stakeholders, organisations are striving to become sustainable at their core. This means leaders should articulate their organisation’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 organisations 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 organisations 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 organisations 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.