The Future of Business: Environmental, Social, and Governance
The Future of Business: Environmental, Social, and Governance
Written by: Paula Antalffy | 3-4 minute read
The future of business success and value creation is now greatly affected by a business’ commitment to sustainability, and environmental, social and governance (ESG) metrics, shares Forrester analyst, Ryan Skinner in a recent blog post.
Today, more than ever before, customers, stakeholders and investors are looking beyond maximising value, instead focusing on conscious and sustainable business practices. Building a modern business, which embraces and is driven by sustainability is a challenge for any company. However, businesses who succeed in this should expect to see increases in their customer base, employee engagement, hiring throughput, VC investment opportunities, PR and brand perception and many additional benefits.
In this article we review the challenges of putting sustainability at the heart of your business - from balancing economics and ethics and rebuilding trust in the workplace, to the three pillars of sustainability transformation, as viewed by analysts such as Forrester.
Balancing Goals and Sustainability
In order to stay ahead of the competition, businesses must begin asking themselves questions which look beyond maximising profits. A PewResearch poll found that today 71% of millennials and 67% of Gen Z, in the United States, believe that addressing climate change should be a top priority to ensure a sustainable planet for future generations.
In order to appeal to more environmentally conscious customers, businesses need to find a critical balance between economics and ethics to define how their businesses will look like in a future where sustainability is key.
Among the tides pushing towards more sustainability is the The United Nations 2030 Agenda for Sustainable Development which outlines 17 goals businesses should consider when planning the future of their business. The program is also created with a scorecard, allowing countries and businesses to measure their impact based on people, planet and profit.
Forrester analyst Ryan Skinner also shares his take on how businesses choosing to pivot towards ESG conscious planning today, can help create value in the long term through “driv[ing] down risk and mak[ing] the most of scarce resources.”
In order to rebuild trust, with customers who are now often cynical about sustainability, businesses can turn to the ESG framework. What’s more, businesses need to take their integrity and trust building seriously, putting time and resources into creating a business which shows empathy, integrity and transparency throughout all of their practices.
Transforming into a ‘truly sustainable’ business
In order to become a truly sustainable business, companies must also begin building a new policy from the ground up for their vision of future sustainability. Forrester VP and Principal Analyst, Thomas Husson, shares the 3 key pillars for this transformation, which are: bold leadership, aligned stakeholders and sustainable leadership.
Similar to the process of digital transformation, businesses looking to create a sustainable future for themselves cannot simply apply a ‘one size fits all’ policy. Instead they must examine key aspects of sustainability and how their own business’ purpose aligns with them.
Husson outlines what he believes are key steps a businesses must commit to when writing their policy:
(Re)defining their unique and authentic purpose: Understanding a business’s purpose beyond generating profit can help create a more authentic, long term strategy for building trust with key stakeholders. This purpose can also help guide future planning, acting as the North Star of a business.
Evaluating business value beyond profit: Businesses need to begin thinking beyond profit, looking to get a wider understanding of ESG standards and how they are measured.
Running a widely sustainable business: Management must look beyond the traditional way that carbon off-set has been tackled, such as philanthropy and compensation. Instead businesses must look to change the core of their strategies, to eliminate unsustainable practices at the source.
Creating a Sustainable Organisation at The Core of Your Business
Creating a sustainability policy is only the first step in the green future of any businesses. Companies need to be pragmatic and practical about how they can integrate sustainability into every aspect of their business practice on a day to day level.
Tackling Sustainability The Easy Way
For businesses looking to find a modern and innovative solution to help create a more sustainable future for their businesses, ESG reporting metrics can be a good starting point. However, this often loosely defined framework often leaves businesses with questions around how to quickly begin working towards a more sustainable future.
However, the daunting task of implementing truly environmentally conscious policy which builds trust doesn’t have to be difficult. New and innovative businesses, such as MyDay, are helping CEOs easily put employee wellbeing, community and sustainability first.
Platforms like MyDay tackle the issue of sustainability directly, allowing employees to contribute to carbon offsetting through daily goals of wellbeing. The platform uses verified global impact projects and high integrity carbon credits, to reward employees putting their wellbeing and sense of community with their team first.
With integrated social features, the platform also gives team members a place to create virtual communities around shared passions, causes and hobbies. The creation of these support networks, and taking an active role in these communities, is also rewarded with carbon offsets.
For businesses looking to begin taking steps in the direction of sustainability, MyDay is a great way to easily tackle the challenge, while also allowing team members to feel engaged and supported by the business and each other.
If you would like to learn more about how MyDay can help create a more sustainable business - book a call today!
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