By prioritizing ESG considerations, companies can help to create more sustainable, equitable, and resilient business models that can benefit investors, employees, and society as a whole.
ESG (environmental, social, and corporate governance) considerations are important in relation to financial investments because they help investors to evaluate the risks and opportunities associated with a company’s operations and performance beyond traditional financial metrics. ESG factors can impact a company’s long-term sustainability and resilience, as well as its social and environmental impact.
Investors who consider ESG factors in their decision-making process may seek to avoid companies with poor ESG performance or identify companies with good ESG performance that are more likely to deliver sustainable returns over the long term. In addition, investors who prioritize ESG factors may be interested in supporting companies that are working towards positive social and environmental outcomes, which can have a positive impact on society as a whole.
Where Does HR Fit In?
HR plays a critical role in promoting ESG considerations within companies. Specifically, HR departments can help ensure that a company’s internal policies and practices align with its ESG goals. For example, HR can help to implement diversity and inclusion initiatives, develop employee training programs on environmental sustainability, and ensure that employee compensation and incentive structures align with ESG performance.
Additionally, HR can help to recruit and retain employees who share the company’s ESG values and culture, and who can help the company to achieve its ESG goals over the long term.
My guest in HRchat episode 544 is Dr. Shilpa Tiwari. Shilpa is Global Executive Vice President Social Impact & Sustainability at Citizen Relations. Shilpa has experience as a consultant and held executive positions at OMERS and Manulife. She has spent her career advancing sustainability, social impact, and EDI across a variety of sectors including mining, oil and gas, forestry, financial services and consumer goods.
Alongside Miranda McKie, Diversity, Equity and Inclusion Analytics Founder and Principal at McKie Consultants Inc. and Michelle Micuda, President at Staples Professional, Shilpa will be sharing her insights in a session at the March 9 Agility Reimagined Summit called The Intersection of Organizational Interests, Employee Values, and ESG Initiatives. The discussion will ask: How Do We Align From a Values Perspective, Manage Risk, and Bring to Life Commitments as They Relate to ESG? Apply for your tickets here.