Three exercises to test your ESG strategy

In today’s marketplace, corporate sustainability is far more than a buzz word – it’s an imperative for survival. The means by which stakeholders measure your performance in this sphere are rapidly developing. There are three key elements to understand as your company develops its ESG strategy.

Understand the nuances involved

Corporate social responsibility (CSR) and environment, social and governance (ESG) standards are interrelated, but they are not the same thing. It is important to understand the distinctions to make sure the two are properly aligned. Here are some key questions that will guide you in that process.

Understand both synergies and conflicts

Before your business can craft an effective ESG strategy, it is first necessary to fully understand the relationship between the E, the S, and the G.  These three conceptsare generally lumped together as one set of goals, but they don’t always have a symbiotic relationship. Have you considered the relationships between them? Learn more about the trade-offs between these goals here.

Understand that the process requires constant attention

Even with the best intentions, it is easy to get off track when it comes to ESG goals. You may have stated your company’s purpose to align with your ESG goals but there are always financial pressures and divergent stakeholder interests, and it can be tough to find the right balance. Here’s a quick checklist of questions that will ensure you don’t make some of the common mistakes that companies make.