Not a day goes by without hearing about environmental, social and governance (ESG) principles. The pressure on leaders is increasing on all sides. Consumers, investors and governments are raising their expectations and demanding concrete commitments.
Firms that turn a deaf ear will pay the price and face many pitfalls, both in accessing financing and in recruiting talent and supporting their growth. Like a steamroller, ESG is a big trend that organizations can no longer ignore.
However, according to a recent probe, companies are not ready to face the surge. The CASACOM Elevation Study, conducted with Léger among 300 organizations of all sizes and from various sectors in Quebec and Ontario, reveals that 40% of organizations have no ESG or CSR (corporate social responsibility) strategy. can be considered as the antechamber of the ESG). Only 48% of respondents say they have implemented such an approach.
Another worrying fact, half (52%) of companies integrating ESG / CSR principles do not publish a report. This indicates a misunderstanding of this rigorous and transparent process based on measurement, systematic evaluation and disclosure.
In addition, the understanding of the concept of ESG / CSR differs greatly from one organization to another. Several companies indicate that they practice ESG / CSR by making donations and sponsorships, or by taking a public position on policies or societal issues.
Companies face obstacles in implementing ESG / CSR, including lack of time, the absence of clearly established priorities and the difficulty of collecting internal and external data. The lack of expertise within organizations is also a major obstacle.
Take the lead
Despite the pitfalls, it is essential to take the lead in order to position yourself well. Decision-makers who fall behind will live with the consequences of their inaction and the backlash will only be greater. As with any challenge, it is important to think ahead and exercise leadership to avoid having to adopt measures under pressure.
So where to start ? Three main steps are to be taken. The company must first assess its ESG risks and opportunities in conjunction with its stakeholders. This audit can be carried out within the organization or better, externally, for hindsight and objectivity.
It is then necessary to ensure that the risks are mitigated or the opportunities identified are exploited. Some of these elements must become priorities in the strategic plan of the company.
Finally, each of the performance objectives should be closely monitored, measured and then disclosed.
The tone and the means of communication surrounding this process must be chosen with care. The ESG is above all not a marketing campaign!
The credibility of the process relies in particular on the ability to involve stakeholders, starting with employees. The last thing a business wants is to be accused of greenwashing and to be forced to go back to square one. So, are you ready to take the plunge?
What do you think? Express your opinion