Creating a legacy of sustainability will take more than writing one report and sharing it with consumers and investors. More consumers are adamant about doing business with a company that has a meaningful presence beyond their products and services. Doing good for people and the environment is not only about ideating on and executing a green tech PR campaign or putting up the right social posts. Instead, it’s about acting authentically, and consistently. That is the way to build long-standing trust with consumers, and ultimately please investors and advisory boards.
There are arguments on both sides of whether efforts to improve diversity, equality and inclusion (DE&I) and environmental, social and governance (ESG) at companies are politically driven. A recent article in The Economist questions the correct measurements of ESG data and states that the focus should squarely be on emissions. However, a rebuttal article in Forbes points to this being too narrow of a scope and that some asset managers are already customizing offerings for investors interested in focusing on the environment and those interested in social issues.
The recently signed Inflation Reduction Act, which has $369 billion earmarked to address climate change, makes it clear that more companies will need to set clear sustainability priorities as the area becomes more and more important to investors/advisory boards.
There are several ways to ensure a company’s sustainability is positively linked to inclusion and growth. An article from McKinsey & Co. considered how “sustainable and inclusive growth can be a dynamic self-reinforcing combination, but achieving will require addressing counteractive forces.”
Companies looking to validate their sustainability pledge should consider the following:
Identify a meaningful purpose that resonates with employees, customers and investors Determine what purpose aligns with all of the company’s stakeholders and create a plan for that one purpose. Focus and alignment are key to ensure that the company can continue efforts for the long term.
Conduct periodic internal reviews
Once a company has ensured that the purpose-driven campaign aligns with the mission and messaging of your company, conduct regular internal audits of the campaign to ensure it is on track. This will help a company determine if the initiative is producing the desired result and where adjustments might be needed. Timely reviews show employees the company is committed to making positive strides and this can translate into improved productivity and efficiency. This ultimately increases profits
Consult professionals
No company has all the answers and enlisting the help of DE&I and ESG consultants can help a company reach its goals without the headache and cost of failed attempts. More reputable companies as well as government agencies such as the Environmental Protection Agency and its framework for sustainability offer companies a plethora of information and best practices for successful on-going campaigns.
It is crucial that companies’ sustainability efforts are built for the long haul. This commitment to positive change in company, people and the environment may seem costly at the onset but the value of the credibility built and the increase in revenue will prove to be worth the investment.
– Charlyne H. McWilliams, SVP