The True Value of ESG in Your Organization
I often hear decision-makers delay their ESG strategy because of the potential costs. Is this the case for you? If so, I recommend you think again! An investment in ESG may seem large and daunting, especially since the financial benefits are not immediately apparent. However, it is important to focus on the medium and long term rewards. The biggest mistake you can make is not taking action.
ESG factors can have a positive impact on the value of your organization and have a ripple effect throughout your value chain. Whether your organization is public, private or non-profit, an ESG strategy is an important risk-management tool and a lever for growth. When well thought out and implemented, it creates value for your organization and stakeholders.
Managing ESG issues is a business imperative that must be integrated into your strategic planning as well as your risk and opportunity management. This starts with the mobilization of your board of directors and management. Throughout this ESG journey, a strong communication plan will mobilize and engage all your stakeholders. Stakeholders are increasingly concerned about environmental and social issues. They are demanding more from a responsible partner. Whether they are your investors, your customers, your employees, etc., they are increasingly interested in your activities.
For your employees, they want to work in a responsible environment. As your most valuable asset, not only should they be made aware and informed of the planning process, but it is also essential to consult them about their concerns, perceptions and the solutions they recommend. Involve them from the start, and you will allow them to flourish in a work environment that matches their ambitions. They will remain loyal to your brand. You can involve them in environmental initiatives, but also care about their well-being. Did you know that employees who feel their employer cares about their well-being are 69% less likely to actively look for a new job, 71% less likely to experience burnout, and three times more likely to be engaged at work?
This will apply to all of your stakeholders in your organization. We will discuss the steps to a successful ESG strategy in more detail in a subsequent article.
Other motivating factors for implementing an ESG strategy include:
- Retention of your employees and attraction of new talent, particularly in a context of labour shortage;
- Climate change: each organization contributes to it at different levels and each is aware of the major efforts to be made to curb this trend; conversely, climate change has and will increasingly have an impact on you, directly or indirectly;
- Customer satisfaction, retention and growth opportunities;
- Access to capital markets;
- Your reputation, as well as maintaining or improving the social acceptability of your projects.
Enable your organization to gain a sustainable competitive advantage and meet the ever-changing needs of your stakeholders. It is no longer a question of creating value only for the shareholder and the organization, nor of focusing the business model solely on achieving profits and other financial indicators. New parameters have come into play. The definition of long-term value has evolved and now takes into account all your stakeholders. This value creation is part of a perspective where the three pillars, E. S. and G., must of course be taken into account.
Are you ready to start your ESG strategy today? Contact me at email@example.com.
Christelle Masson, ESG Director, CASACOM