ESG is the future of business
ESG considerations are now a top priority for businesses, but what is ESG?
The term refers to environmental, social, and governance criteria, which socially conscious investors use to evaluate the long-term risk and value of a business investment. ESG criteria have transcended their origins and are now commonly used by local communities, activists, regulators, and jobseekers to evaluate a business.
Modern businesses are now facing high demand to comply with ESG and demonstrate their commitment to sustainability over the long term. We believe that HR departments play a key role in setting and achieving corporate ESG goals.
In this ebook, we explore the concept and framework of ESG, define its importance to the HR function, and share different ways HR professionals can drive their organization’s ESG goals.
Why is ESG important?
At its heart, ESG is about building healthy relationships between the organization and its employees, stakeholders, suppliers, and regulators rather than solely focusing on profit.
When companies invest in ESG, they mitigate long-term risks and improve their corporate resilience. ESG criteria is also proving to be crucial in talent attraction and retention, as new generations of employees are far more socially conscious than their predecessors. This is evidenced by the Great Resignation phenomenon around the world and in Asia, where disillusioned employees are seeking new roles at companies they sincerely believe in.
The increased attention towards ESG criteria is aligned with a shift in HR towards more comprehensive and people-focused roles. HR is no longer just about payroll, leave, or compensation & benefits. More and more, HR managers are looking to be involved in strategic planning and human capital. This is reflected in changing job titles and descriptions, such as “Human Capital Manager”, “Employee Wellbeing Leader”, and “People and Culture Managers.”
Key takeaways from the ebook:
- Understand the “E”, “S”, and “G” of corporate ESG
- Explore the role of HR as stewards of the environment, safeguards of community, and drivers of responsible governance
- See the connection between HR, ESG, and the UN’s Sustainable Development Goals
- Learn how the HR department can pursue different high-value initiatives to improve aspects of corporate ESG
- Discover how HR managers can build a culture of psychological safety to improve performance and strengthen workplace culture