When you hear the term ESG (environmental, social, governance) you, like many others, will probably instantly think about the environment.
Most companies focus on the ‘E’ as part of their long-term strategy, looking at ways they can reduce their carbon footprint and lower their environmental emissions. But the ‘social’ side of ESG is becoming increasingly important as companies explore ways of creating better workplace environments to drive diversity, equity and inclusion (DEI) initiatives.
So, how can companies use ESG to focus not only on the wider environment, but also their immediate work environments to build a healthier and happier workforce?
Creating tangible change
Historically, making a positive difference to people’s experience at work has been more difficult to monitor and measure, compared to the environmental side of ESG reporting. However, with the global pandemic putting a strain on many people’s wellbeing along with work habits and environments constantly changing to include more digital ways of working, employees are now facing increasing pressures at work – from the possibility of isolation and loneliness when working from home to the need to keep up with fast-paced, technological changes. So, tracking experiences at work is more important than ever.
While compliance across the social side of ESG can vary in different locations, it’s crucial for employers across the world to focus on employee experiences and this goes beyond just looking at key elements of diversity, equity and inclusion.
Businesses should be focusing on all areas of employee wellbeing to build happier working environments because, according to research, happiness can have a big impact on business outcomes.
One study by Warwick University found that happiness can boost productivity by 12%, while research by Forbes revealed that it can drive a 37% increase in sales.
Making a difference to the employee experience
It’s clear that investing time in monitoring the social pillar of ESG makes good business sense. But it’s critical for companies to track the right data so they can take positive action; just like the green-washing we can sometimes see on environmental performance; businesses need to do more than just say employee wellbeing is important. They need to prove it is by taking action. That’s where our expert team can help.
Understanding what wellbeing means to you
We know that everyone’s journey to creating better employee experiences is different and every business has different priorities when it comes to monitoring diversity, equity, inclusion and overall employee wellbeing.
Our advisory team is here to understand your goals and objectives and help you tailor a plan that’s designed around your business. We undertake this through a materiality assessment, reviewing the most important key ESG drivers in the business. When it comes to monitoring and measuring wellbeing at work, you could have a number of parameters you’re interested in tracking. From employee engagement and greater loyalty to increased productivity and efficiency. So, we’ll work with you to break down your objectives and create a bespoke and digitised approach to ESG.
Measure, monitor and take action
There are a number of ways ESG can impact on employee wellbeing and looking across the environmental, social and governance landscape is essential to find opportunities and ways to improve business processes.
This report by Deloitte outlines how a variety of factors can impact human wellbeing including climate change, discrimination in the workplace and equal access to benefits to name just a few.
Once you have defined the areas you want to focus on, our team can advise you on how you can measure and monitor your impact.
Using the information you gather, you can update policies and create change for the better. Your people are your biggest asset. Talk to our team today to find out how we can help you build better environments at work by streamlining your ESG reporting.
Contact our team today.