Five must-do ESG actions for any size business
Sustainability and ESG principles are here to stay, no matter the size of your organisation.
If you haven’t started your sustainability journey yet, you might be falling behind.
With mandatory sustainability reporting on the horizon, especially for listed entities, public companies, and registrable superannuation entities, getting everyone involved is crucial. Depending on your entity classification (Group 1, 2 or 3), you’ll need to start complying with these legislative requirements soon.
BDO’s sustainability team have compiled a list of four must-do actions to ensure your organisation has mapped out a path to sustainable action:
1. Complete a materiality assessment
Conducting a materiality assessment enables you to identify what matters to your business performance in the medium and long term, and what matters most to your stakeholders. This is an important step for understanding and prioritising the important sustainability matters to your business.
Recognise that your organisation’s future success will be shaped by the social and environmental consequences of its decisions and actions. Leading from the top down can positively impact behaviour and culture.
Shape your ESG focus with input from all stakeholders: employees, customers, investors, the community, and the environment. This holistic approach ensures your initiatives are relevant and impactful. Engage in open dialogue with stakeholders to understand what matters most to your business performance in the short and long term and involve employees in setting and achieving sustainability goals.
Do one thing today
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Download our sustainability activation checklist, developed to help organisations assess, prioritise, commit, measure, report and improve their sustainability efforts.
2. Engage and empower your employees
By completing the above action, it then becomes much easier to prioritise a culture of engagement and open dialogue around ESG, particularly for your employee stakeholder group.
With the findings from the materiality assessment, you’ll have a comprehensive understanding of various views and be able to allocate company resources and time accordingly.
Additionally, this information is key to cross-referencing with that of the board or executive leadership. With a clear picture of overall stakeholder priorities, it’s time to leverage this information to engage and empower your employees in your organisation’s sustainability goals.
Encourage and reward staff behaviours that align with your sustainability goals and invite employees to submit their ideas for improving or implementing new sustainability practices. Share and promote successful sustainability initiatives, regularly highlighting their impacts and progress.
Host interactive workshops where employees can learn about sustainability practices and how they can contribute. Invite sustainability experts to speak about the latest trends and best practices in sustainability.
Remember, your external efforts must ideally reflect your internal culture to be truly effective. By fostering an environment where sustainability is a shared value, you ensure that your internal culture supports and enhances your external ESG initiatives.
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Implement a sustainability-focussed communications plan that communicates and maintains your organisation’s ESG goals, progress, and achievements to build trust and foster a sense of shared responsibility.
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3. Be transparent
Openly share your sustainability goals, achievements, and plans for future initiatives. Transparency builds trust and demonstrates your commitment to continuous improvement. Communicate the positive impact of your efforts on the environment, business, and employee well-being. Acknowledge your challenges and areas where progress is not as significant, as this is just as important as celebrating your successes.
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Establish clear metrics to track your sustainability performance. Regularly report on your progress to maintain transparency and accountability. Use these insights to continuously improve your practices.
4. Go beyond compliance
Simply meeting legislative requirements isn’t enough to be seen as a sustainability leader. You should strive to exceed these standards and set ambitious goals that showcase your dedication to making a positive impact.
Create a workplace culture that prioritises sustainability by offering training and development programs to educate employees about ESG principles and how they can contribute. Recognise and reward sustainable behaviours and initiatives to reinforce the importance of these practices.
By nurturing a culture of continuous improvement and innovation in sustainability, you not only comply with regulations but also lead by example, inspiring others in your industry to follow.
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Encourage innovation by investing in sustainable technologies and practices. Support research and development initiatives that aim to reduce environmental impact and promote social well-being.
Here to help
In today’s dynamic business environment, sustainability is no longer just a trend, it’s a key to long-term success. Engaging your people in your sustainability efforts is crucial for driving impactful change within your organisation. This Sustainability activation checklist is perfect for those starting their journey or for reviewing whether you’re on the right track.
BDO’s sustainability services team is ready to guide your team on its sustainability journey towards a greener future.
