There is no time like the present to focus on ESG, with the Energy Crisis and Global Warming reaching a boiling point, the recommendations from last year's IPCC Report need to be implemented.
Investing in sustainable and renewable energy is the best way to resolve this, but there are other methods that can make a difference to your ESG practices.
What Should Your ESG Plan Include?
Firstly, you should ensure you are fully aware of what ESG means! Briefly, it is the concept that there is an ethical way to do business, which prioritises the environment and people. This means you try to limit the negative impact your organisation has on global warming and try to maximise the positive effect you have on your stakeholders, local community and employees.
Your ESG plan should be sector specific so you should know what is relevant to your organisation. Some industries already have overarching recommendations, for example the Housing Sector has the SRS. There is no point in concerning yourself with the water wastage of cottons if you are an insurance firm!
The best ESG plans have both long and short term goals. What can be quickly implemented and what needs more planning?
How To Make Sure That Your ESG Plan Works:
There is really only one way to do this: ESG Reporting! Regular evaluation of your processes will allow you to determine what is effective and what needs improvement.
Here are our top tips for improving your ESG Plans:
1) Make Sure You Have A Clear Budget:
Ambiguity is never useful but particularly not when it comes to ESG planning. You need to make sure you know how much money you have to play with and allocate it to the areas that are most relevant for your organisation.
If you are a local company then it is more useful to spend it on local rather than international projects. If you have factories then it is worth ensuring their environmental offset is minimal rather than sponsoring a small town football team. That being said, there is no reason why you can’t do both if you have the money!
2) Hire A CSO:
Hierarchy is always important for effective governance. The G in ESG is often overlooked but having a Chief Sustainability Officer will ensure that your ESG plan is governed effectively. It will also show your investors that you are taking ESG seriously!
3) Set Progressive Goals:
Structure is essential for an effective project. This will allow you to focus your energy on actionable goals, and allow for action items to be set out from the get go. As we’ve already mentioned, it is crucial to have both short and long term targets for ESG. ESG is not an item that can just be ticked off and completed but rather a lifestyle change for your business.
4) Invest In Technology:
Technology can play an essential role in your ESG plan. Replacing physical materials with software can reduce your waste materials and help the switch to hybrid work which you may have already embraced as part of the ‘new normal’. Technology is also the way forward when it comes to energy savings, investing in modern equipment tends to improve your energy savings rating!
5) Monitor Progress frequently:
Reporting on ESG often will help you stay on top of things! You want to make sure that you have the most engaging ESG report possible so your shareholders will value your efforts. Your ESG story is important and so are your reports!
How Can Convene Help You?
Convene values the importance of ESG, in fact this year, on Earth Day we are currently attended a whole conference on it!
We also have been working hard to develop our own reporting tool and are proud to introduce Convene ESG. Our aim is to alleviate some of the challenges of data gathering, performance tracking, and reporting, helping your sustainability, finance and governance teams focus on their transition pathway towards net zero.
We are working in close collaboration with a number of existing Convene housing customers including Orbit and Cartrefi Conwy as part of our early adopters programme. Through their valuable feedback, we will together continue to develop and fine-tune our platform, delivering a robust end-to-end ESG experience.