Implementing and Communicating ESG in Companies: Not Necessarily a Nightmare
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BUSINESS
ESG represents a set of criteria that evaluate the sustainability
of development, and the responsibility held by companies.
As of right now, reporting is only mandatory for banks
and certain large companies. However, in the near
future, it will be required in small companies as well. This
will include a variety of non-financial indicators of social
responsibility, company administration and management,
and environmental impact. All the three parameters reflect
the qualities of both internal and external communication
of an enterprise.
There is a reason why good communication is
one of the most valued factors of a dynamic work
environment. It provides efficient cooperation, and
therefore increased productivity. Creating an open
and respectful environment benefits everyone, and
has a profound effect on the team’s efficiency and
ability to complete goals. This is what ESG is all about:
making companies prove that profit is not their only
motivator.
ESG covers working conditions, employee care, and
corporate culture as well as ethics, transparency,
anti-corruption mechanisms, equal opportunities and
risk management. Public communication, supplier-
customer relations, and customer protection are also
amongst the factors evaluated by ESG.
Creating an effective ESG strategy requires good
use of communication tools and management skills.
Setting objectives within the three pillars of ESG is just
the beginning. Individual measures need to be well
defined, quantified, measured, and communicated
(without greenwashing). Only then can an ESG strategy
be truly effective and successful in increasing employee
involvement and the credibility of the company processes.
Those who don't shy away from ESG reporting may
win a great opportunity for personal development in
this obligation. Sustainability affects the accessibility
of more favourable financing, brings savings, boosts
competitiveness, and promotes a more positive view
of the brand.
Devising an ESG strategy and communicating it
properly can pose a problem, however. In simple
terms, companies do not have the right staff. According
to a survey conducted last year by the Association
of Small and Medium-Sized Companies, two thirds
of businesses do not know what ESG entails. Many
companies have already introduced ESG features in
their operations in intuitive and natural ways, however,
they still view it as an additional bureaucratic load.
A suitable solution can be an interim manager who
creates an ESG strategy and also implements it.
Text: Ing. Jana
Dronská, MBA
Foto: archiv
www.caim.cz