Strengthening the People Dimension of ESG

Strengthening the People Dimension of ESG
February 9, 2023 12 mins

Strengthening the People Dimension of ESG

Diverse business team

HR leaders are at the center of activating ESG initiatives in the workplace. This has a critical impact on protecting a firm’s greatest asset — its people.

Key Takeaways
  1. ESG should be viewed holistically across your business value chain.
  2. There is often a gap between what employers versus employees think about their company’s ESG efforts.
  3. Proactively building a people strategy that embeds ESG goals will help address risks while capitalizing on opportunities.

Environmental, social and governance (ESG) is rising to the top of many companies’ priority lists. The growing need for organizations to address evolving stakeholder expectations — including regulators, investors, customers, insurers, employees and even our broader society — make ESG objectives critical to a firm’s overall success. This is especially true when it comes to people.

HR leaders should take a holistic approach to ESG across the entire business value chain. However, focusing on the intersections and interdependencies between associated risks and opportunities can be challenging. For example, climate change is not only an environmental issue. It also affects financial and physical health and overall wellbeing, with different outcomes based on people’s gender, age, ethnicity, socio-economic status and location

In order to develop a comprehensive approach to a company’s ESG journey, HR leaders need to consider three key dimensions:

  • The external dimension - How your organization conveys its core values and commitments, and how its disclosures impact its ESG ratings
  • The internal dimension – How you connect ESG goals and commitments to action
  • The perception dimension – How well you communicate ESG plans to employees to avoid any misconceptions

Watch this video for more insights on an effective people approach to ESG:

General Disclaimer

The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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