17 May ESG and Sustainability
Individuals, risk and capital are the essential links that connect all dimensions of ESG and sustainability. Folks, for instance, are on the heart of climate and resilience, wellbeing, diversity, equity and inclusion (DEI), and sustainability. These that can interact their people in advancing their DEI and climate goals, while supporting employee wellbeing and resilience are more profitable than companies that don’t. Risk management captures and measures how ESG pervades an organization’s operations as well as its potential costs of motion and inaction. And capital not only encompasses sustainable investing, but also investment in programs – whether or not to help staff and communities or to mitigate risk.
An organization that meets ESG commitments starts by understanding how individuals, risk and capital have an effect on every of its stakeholder groups. For example, they know their staff will look to them to not only assist and invest in their wellbeing and Total Rewards – fair pay, versatile work arrangements, health and benefits programs, to name just a couple of – but also to demonstrate organizational commitment to the core tenets of ESG: protecting the environment, enhancing social impact and diversity and inclusion, investing responsibly and ensuring efficient corporate governance.
Environmental, social and governance defined
Organizations on the forefront of ESG appreciate that their investors, who acknowledge the importance of attracting top talent, will help those with the processes, talent and technology to run capital environment friendly companies as well as concentrate on social and environmental issues. In addition they see the necessity to handle the quick-term risks related with climate change – more severe weather, increased supply-chain risks attributable to more frequent and intense natural catastrophes as well as their carbon footprints and, in some industries, the long-term sustainability of their business models.
And while environmental and local weather exposures are typically the first risks that come to mind in terms of ESG, risk administration extends into the social and governance categories as well. Essentially, efficient risk administration – and its impact on people and capital – can be part of good ESG management. Similarly, maintainable investment transcends ESG classes while additionally incorporating dimensions of people, risk and capital.
Without a multifaceted but integrated approach to ESG, organizations are likely to fall in need of their commitments and face penalties on numerous fronts: shareholder value, ability to draw and retain top talent, and loss of brand equity, among others.
Whether or not creating a holistic, enterprise-level strategy, executing tactical ESG-associated programs, or helping to connect sustainability goals with each day efforts, we assist clients address ESG as a fundamental want all through their organizations’ numerous individuals, risk and capital strategies, with complementary companies and options that foster operational excellence and lengthy-term organizational sustainability.