A Role for All

Since the term was coined in 2005, the ESG (Environmental, Social and Governance) framework has increasingly become the measure by which businesses consider their ethical impact. More than 90% of S&P 500 companies publish annual ESG reports, and with growing consumer and stakeholder expectations, it’s never been clearer that ESG is key to businesses in 2023.

The three-pronged focus of ESG is in step with public priorities, and ethical and transparent governance is also crucial to a company’s standing with consumers and investors. It’s also an important way that organisations are attracting new talent.

These social factors, as well as a greater cultural awareness on the impact of our actions, can help explain why ESG has grown from a boxticking exercise to becoming an organisational cultural belief that can help unite employees in a common sense of purpose.

So, where does the responsibility of ESG lie in an organisation?

The short answer is: with everyone. More and more, businesses are recognising that a systemic shift in the culture of a company is key to behavioural change, and environmental and social governance is a responsibility best shared at all levels. Here’s a snapshot of how the full breadth of a business takes part. >

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MANAGEMENT TEAMS CONSIDER ESG IN TERMS OF:

• Representation of different demographics in the makeup of the C-suite and board of directors.

• An organisation’s financial transparency.

• How a business complies with ESG regulations.

• How executive compensation can occur in a transparent and ethical way.

MARKETING TEAMS PROMOTE ESG BY:

• Assessing how an organisation’s corporate goals align with ESG principles to draw out the through line, and tell a unified brand story.

• Accurately reporting business priorities and achievements without greenwashing. This could be by reporting on a company’s ESG progress or drawing attention to ESGrelated news.

WAREHOUSE TEAMS CONTRIBUTE TO ESG BY:

• Minimising waste in their operations. This can involve incorporating recycled and recyclable packaging materials.

• Reducing plastic use and ensuring warehouse practices meet single-use plastic legislation and standards.

• Increasing material efficiency in things like pallet wrap and shipping packaging.

• Introducing EVs into warehouse fleet services.

• Ensuring proper training for safe use of spaces and PPE, and emergency preparedness.

HR TEAMS PROVIDE ESG BY:

• Implementing hiring policies that support the recruitment and retention of diverse staff.

• Considering ESG principles, like the cost of living and the gender pay gap, in staff pay procedures.

• Creating programs and benefits that support employees’ wellbeing and mental health.

PROCUREMENT TEAMS IMPLEMENT ESG BY:

• Sourcing sustainable products, and keeping up to date with sustainable certification and government sustainable development goals.

• Including ESG considerations in supplier scorecards and performance evaluations.

• Ensuring modern slavery legislation and standards are adhered to across the supply chain.

• Working with vendors and suppliers that follow ESG standards, then monitoring and holding them accountable to the agreed-on practices.

• Tracking and working to improve the carbon footprint of the entire supply chain e.g. by consolidating deliveries to reduce traffic and fuel.

OFFICE STAFF SUPPORT ESG BY:

• Having the correct recycling bins and signage across the office floor and in the kitchen.

• Disposing of or recycling printer toner cartridges correctly.

• Taking advantage of health and wellbeing initiatives, such as counselling services and volunteer leave days, offered by the business. 