What is ESG?

ESG stands for Environmental, Social, and Governance. It’s a framework investors and companies use to evaluate and measure operations beyond financial performance, including sustainability and societal impact. ESG factors can help organizations make essential investment decisions and boost corporate strategies.

Environmental criteria

Environmental criteria can be used to assess how your company performs on environmental impacts, such as its carbon footprint or resource usage. There are seven elements you can look at to measure your environmental impact in ESG:

Energy

Are you cutting back on heating and air conditioning, and turning off the lights over the weekend? Are you using fossil fuels or renewable energy? What about your vehicle fleet—is it gas, diesel, hybrid, or electric? How you measure your performance in this category relies on how your company adapts to inevitable energy changes.

Water

The issue of water scarcity is increasingly prevalent, even in North America. Water usage in industrial processes is often under scrutiny, challenging businesses to find new ways to conserve water and maximize efficiency.

Waste

More efficient processes often produce less waste. Less waste can lead to a higher bottom line and better sustainability.

Greenhouse gases

The federal government aims to decrease Canada’s greenhouse gas (GHG) emissions by 40% to reach a target of 45% of 2005 levels by 2030 and achieve net-zero emissions by 2050. If your company doesn’t align with these goals, you risk missing out on the potential business incentives or opportunities that may come with the shift toward a more environmentally sustainable economy.

Pollution

Your ESG evaluation largely depends on what comes out of your exhaust pipes and what goes down your drains and into your garbage. Consider your company’s environmental impact in relation to how you dispose of chemical waste and batteries.

Materials

Review your supply chain process to lower your carbon footprint by obtaining materials from renewable sources. Aim to use more recyclable materials to be more eco-friendly.

Encroachment on nature

Ensure your company’s location or operations don’t infringe upon natural habitats such as riverbanks, forests, and wetlands. Damaging or degrading these areas can tarnish your company’s reputation and result in penalties.

Social criteria

Your company’s success can often depend on its employees and community engagement. Investors assessing risks and ESG reporting consider factors like employee turnover rates and treatment of staff. Many view companies fostering equity, inclusion, and fair compensation as stable and attractive for investment. Active involvement in local communities through government projects, hiring with welcome kits, and support for local initiatives can enhance your company’s reputation and ESG standing.

Governance criteria

Governance can be critical in ESG considerations, as it can influence all aspects of your company’s operations. Defining economic, social, and environmental values and goals can help your team achieve them. By integrating ESG tracking into financial reporting, management can commit to prioritizing and enhancing ESG performance, reflecting a holistic approach to sustainable business practices.

How to set and accomplish ESG goals

From reducing carbon footprints to promoting diversity and ethical business practices, ESG goals can determine your impact on society and the environment. Below are some ways to set and achieve ESG goals to drive positive change and sustainability:

Identify areas of sustainability

To begin ESG reporting, identify priority areas based on your industry and existing data, such as waste management or resource usage. Start with topics where data collection is already strong and align reporting goals with your business values and mission. Next, consider regulatory requirements in the regions where your company operates and sells its products or services. By focusing on areas with existing data and aligning with business values and regulations, you can develop a targeted ESG reporting strategy.

Set your goals and targets

Once you determine your ESG focus topics, establish your targets and goals for these areas. The following tips can help you set reasonable ones:

• Establish a baseline. Evaluate your current practices across various departments by thoroughly assessing existing activities, policies, and processes to identify gaps.
• Gain insights from your existing data. Use your baseline and gap assessment to understand which aspects you’re monitoring and identify improvement areas. With this knowledge, you can develop a strategy to establish achievable targets and define internal key performance indicators (KPIs) and metrics to drive progress in those areas.
• Use team collaboration. Encourage teamwork across departments within your organization to ensure alignment on focus areas and KPIs. This collaborative approach can encourage data sharing among departments and streamline information integration into your central reporting system.
• Set specific targets. With increased attention to greenwashing and the demand for companies to be more transparent, consider defining precise targets. Set clear, measurable goals that allow straightforward progress tracking through data.

Collect your data

Various methods can help you gather ESG data, depending on your chosen focus areas and internal organizational structure. Here are some examples of data collection:

• Implement cross-departmental tracking of performance and information gathering by: 
  • ensuring regular, accurate recording of water meter readings
  • establishing procedures for logging workplace accidents and performing quarterly reviews
  • maintaining updated records of employee training on sustainability topics
• Use third-party assistance for data collection by: 
  • obtaining data on green energy percentages from your energy provider
  • partnering with a supply chain management company to collect data through audits and assessments

Earth Day ideas for the workplace

Earth Day is a global celebration meant to raise awareness about environmental issues such as pollution, deforestation, climate change, and resource depletion. It encourages individuals and communities to take action to protect the planet through activities like tree planting, beach cleanups, recycling drives, and advocating for policy changes to promote sustainability. Each year on April 22nd Earth Day reminds us to care for our planet and inspire collective efforts to create a more sustainable future.

Earth Day presents a hands-on opportunity to promote sustainability initiatives in the workplace. Companies prioritizing eco-friendliness encourage employee involvement and reinforce their commitment to shared values. Below are some fun Earth Day ideas for workplaces:

Learn plant care

Enhance your workplace environment with a touch of greenery. You can provide each employee with a desk plant and host a plant-care workshop to nurture their gardening skills. Plants add fresh decor to any setting and offer many benefits for your team’s well-being, from stress reduction to inspiration. Workshop participants can learn the advantages of having plants nearby, learn sustainable repotting techniques, and gain insights into selecting the ideal plants for their specific space and lighting conditions.

Create a workplace eco-guide

Developing a workplace eco-guide is an effective strategy to enhance environmental consciousness among your staff. You can distribute this guide to employees on Earth Day, outlining the sustainable initiatives your company is implementing. Here are some environmental conservation factors you can include in your workplace eco-guide:

• location of company recycle bins and guidelines on what you can recycle
• access points for filtered water to reduce the use of plastic bottles
• information on energy-efficient lighting and tips to conserve energy
• tips and tricks for composting
• for remote offices, guidance on sustainable practices at home, such as going paperless, using energy-saving lights and unplugging devices when not in use

Volunteer together

Encourage team volunteering by offering employees a few hours off to contribute to their community. Consider arranging a local park outing for a nature walk and trash clean-up. You can make the event more enticing with Earth Day-themed scavenger hunts focused on leaving no trash behind. Volunteering can promote community improvement, encourage team building and raise morale through shared eco-friendly activities.

Host a fundraiser

Organize a charitable fundraiser as part of your Earth Day initiatives to engage employees in giving back to the community. You can encourage participation by raising awareness about the cause and objectives, and clarifying where the donations will go. Celebrate milestones in your fundraising efforts and add some friendly competition to inspire greater employee involvement and enthusiasm.

By embracing environmental, social and governance factors, you can set a positive example for future generations and make a positive impact on our communities and planet.