Amplifying the S in ESG

Environmental, social, and governance (ESG) criteria have become increasingly important in assessing a company's ethical and sustainability performance. While the environmental and governance aspects often receive the most attention, it is crucial not to overlook the “S,” or social, component – a company's impact on society and its stakeholders.

Historically, initiatives, policies, and practices that companies can implement to improve their “E,” “S,” and “G” performance intersect and overlap at various points. However, the importance of the “S” in ESG has increased in recent years for a number of reasons:

• Changing consumer attitudes: Consumers are becoming more conscious of the impact companies have on society and the environment, and are increasingly looking for products and services from companies that align with their values.
• Greater attention to social issues: Issues such as income inequality and human rights have received greater public attention in recent years, and are now seen as critical factors in determining a company's long-term sustainability.
• Regulatory pressure: Governments around the world are introducing new regulations aimed at promoting responsible corporate behavior, including rules related to labor practices, human rights, and environmental protection.
• Investor demand: Investors are becoming more interested in ESG factors and are increasingly using ESG analysis to make investment decisions. Many investors see companies that score well on ESG factors as being more sustainable and less likely to face reputational, regulatory, or financial risks.

The role of ESG in financial performance: Studies have shown that companies with strong ESG practices, including strong social ESG practices, tend to have better financial performance and lower risk over the long term.

Participants will learn:

• The increasing importance of the “S” in ESG reflects a growing recognition that a company's impact on society is a critical factor in its long-term success.
• That successful environmental and governance strategies are dependent on implementing an effective social sustainability strategy.
• They will apply the kinds of practices that companies can implement to potentially improve their social performance and contribute positively to the ESG landscape.

DEIB-Diversity Equity Inclusion and Belonging Strategies, Tactics, Metrics and Solutions.

The shift from DEI to DEIB is one of the 11 HR trends we identified for 2022 and beyond. In said article, we describe pretty accurately what diversity, equity, inclusion and belonging is and how we got there:

• "The field of diversity and inclusion has never evolved more rapidly than in the past two years. We have learned that the more traditional 'diversity and inclusion' (or D&I) is not enough in a society that is inherently biased. This has helped the field move towards 'diversity, equity, and inclusion' (or DEI).

• But being diverse, equitable, and inclusive is not enough to create a work environment that helps people get the best out of themselves. It will, therefore, not be fit for the new era of work. Even a workplace that has every intention of being DEI sometimes fails to retain employees from underrepresented groups because they don’t feel like they belong.

• Belonging at work adds to the DEI equation. If we put our philosophical hat on for a second, we could say that, on the one hand, it is about 'longing to be'. On the other hand, it is about 'being for long', representing an affective and a temporal dimension. Belonging in the workplace brings a shift towards psychological safety and real inclusion.

• DEIB represents being a long-term, integral part of the organization. This is what organizations and HR teams are increasingly realizing.

• Now, for the more data-minded readers amongst you, let’s throw in some data about belonging in the workplace, shall we?

According to the 2021 Culture Report on belonging at work from the Achievers Workforce Institute, belonging is a key factor for organizational success:

• It positively affects retention. 40% of respondents with a strong sense of belonging rarely think about looking for a job elsewhere, versus 5% of respondents with a low sense of belonging.
• It boosts productivity. 45% of respondents with a strong sense of belonging say they are their most productive self at work. Only 6% of those with a low sense of belonging say that.
• It’s the best kind of employer branding. 51% of respondents with a strong sense of belonging would recommend their company as a great place to work, versus 4% of those with a low sense of belonging.

Diversity Leadership

• The want-to-win attitude: how to build it.
• Strategy and planning essentials for managers-coaches.
• How to coach your team.
• Coaching and counseling the problem player.
• How to handle a coaching/counseling session.
• Coaching superstars: how to be a manager and a mentor
• Tips to ensure you recognize employees with great potential
• Essential techniques for mentoring employees that keep high achievers enthused, challenged and interested.
• Ways to offer constructive criticism to a top performer
• How to help the high achiever without alienating the team or playing favorites.
• Incentives to offer when you can't give raises or promotions.
• What you should expect to bring to — and take from — a mentor relationship.

ESG Adoption is Now Widespread Among Investment Managers

Ninety percent of the 1,130 global investors surveyed in our latest ESG Global Study* have integrated ESG into their investment approach. Rising client demand, the desire to make an impact, new regulations and greater recognition of the potential financial consequences of ESG considerations have been cited by previous survey respondents as the main drivers for continued adoption.

The most widely used approach to-date, as measured by total AUM, is ESG integration, whereby investment professionals seek to improve investment research by evaluating environmental-, social- and governance-related risks and opportunities that could have a material impact on investment results. ESG integration is widely considered to be an enhancement to analysis and to focus on ESG considerations that are material to the investment case. Integration is the most widely used ESG approach.

Becoming an Anti-Racist Organization

After the 2020 murders of Ahmaud Arbery, Breonna Taylor, and George Floyd and the wave of protests that followed, business leaders began asking similar questions: What is it that corporate America has failed to hear? What has my own company failed to hear?

I soon found myself being approached by countless executives wanting to combat systemic racism and seeking advice about how to do so. As a Black man with three decades of experience in the corporate world, I’ve gained a deep understanding of how to initiate and implement diversity, equity, and inclusion (DEI) agendas from the top.

In what follows I provide a playbook for getting started, drawing from my experience as an executive, a board member, a CEO coach, and an adviser and from discussions with others who have taken on and nailed transformative change. It comprises seven steps: listening to and learning from colleagues across the organization; enlisting senior executives to the cause; auditing the culture; documenting what’s already being done to foster diversity and inclusion; establishing benchmarks for measuring progress; building "action learning teams" to spearhead the effort; and developing and communicating an action plan.

Actively Listen and Learn:

• You can start by setting up a formal process for taking the organizational pulse, whether in town halls attended by thousands of employees, or in roundtable discussions with 15 or 20 at a time (be sure to include people from every level), or both. Think of this as a listening tour.

• You might kick off a town hall with a discussion of company values led by you or another senior executive. It can be helpful to bring in a guest expert or a panel to talk about topics related to diversity and inclusion. After the discussion invite employees to comment and ask questions.

Whatever format you choose, you have two objectives. The first is to engage with staff members to learn what’s in their hearts and minds. Use the sessions to give voice to those who have been voiceless within your organization.. The second is to provide a roadmap for change.