Back-to-School: Your ESG Sustainability Primer

Everything you Need to Know but Were Afraid to Ask

The first yellow leaves are appearing, the sun is setting earlier, and catalogues for pencil crayons and backpacks are arriving in your mailbox. It can only mean one thing – it’s nearly back to school time.

For those of us who’ve outgrown our AstroBoy pencil cases and lunchtime rice krispie squares (mostly), ‘back to school’ often means a period of planning for the year ahead, and bringing a fresh perspective to old challenges after letting our tired brains ease off a bit over summer.

If you’ve been putting off thinking about ESG for your organization, whether it’s adopting sustainability for the first time, or scaling your efforts after early success, there’s a good chance it’s on your to-do list for the fall. If you’re new to Environmental, Social and Governance sustainability, or if you’re an old hand with questions that you feel like you should already have the answer to, don’t worry. We’ve got you. Think of this as your summer tutorial on all things sustainability, so you’re caught up and ready to get straight As on your return to the office.

What is ESG Sustainability?

Environmental, Social and Governance sustainability is, broadly, the concept that businesses can be good citizens, with a net positive benefit to society and the planet, while also pursuing profitability.

At LittPark, we adopt this definition of ESG:

Corporate sustainability means businesses working to meet the needs of the present generation without compromising the ability of future generations to meet their own needs 

We like this definition because it frames sustainability as a holistic approach that embraces growth. Most organizations today do some sort of good, whether it’s participating in a fun run or matching employees’ charitable donations, but ESG moves the dial from doing good to being good. It’s a shift in perception that centres integrity and genuine care for the communities in which the business operates. When done well, the benefits of ESG for business are manifold – improved reputation and brand recognition, increased employee engagement and productivity, improved investor relations and profitability. It’s a win-win-win.

So, that’s the broad definition of ESG sustainability. You can find out more about ESG and why it’s good for business here.

Now, let’s dive into each of the components of ESG.

Environmental Sustainability

The E in ESG is, as you probably guessed, for environmental sustainability.

After a summer which saw the hottest month on record globally, unprecedented heat and devastating wildfires across Canada, and the release of the latest IPCC report on the climate crisis that was described as a ‘code red for humanity’, you’d be forgiven for feeling overwhelmed with gloom at the state of the planet.

However, as Patagonia founder Yvon Chouinard says, the cure for depression is action. Businesses have an unprecedented opportunity to show leadership in environmental sustainability, particularly as they are typically more agile and able to move more quickly than policy makers.

Whether you’re setting ambitious net-zero targets, addressing the carbon impact of your supply chain or encouraging your employees to bike to work, the key is authenticity and transparency. With greenwashing rife across the business world, consumers have become adept at identifying those businesses taking meaningful action, and those who are mostly just talk. By setting bold but achievable goals, and measuring and reporting regularly on your progress, you will build trust in your green credentials. After all, the relationships built between organizations and their stakeholders are no different to the relationships we build in our personal lives. They thrive on honest communication and an ability to tackle difficult topics with transparency and empathy. 

Social Sustainability

Social sustainability is a concept that’s likely familiar to many, as it ties into earlier iterations of ESG, like Corporate Social Responsibility, and is related to ideas most of us intuitively understand, such as business ethics and philanthropy.

Of course, while they’re rooted in the same ideology, social sustainability is more than philanthropy. It addresses the question of how businesses can play an active role in creating a thriving community today, and in the future. It recognizes that when societies do well, businesses do well.

Like every aspect of ESG, social responsibility is a holistic concept. It envisages an organization that has a positive impact not only in its community, but also for stakeholders, including suppliers and employees. Investors are increasingly recognizing the link between social sustainability and growth, together with reduction in downside risk. Whereas it was once seen as a cost of doing business, social sustainability is now recognized as a revenue driver.

Learn more about how to integrate social sustainability across your organization.

Governance Sustainability

Governance is a broad and complex term, and unless you’re a bit of a policy wonk at heart, it can feel like a cure for insomnia. But governance doesn’t have to be boring – in fact, it’s really the foundational element to your ESG strategy, because without good governance, nothing really ever happens. Or worse, things that shouldn’t happen, do.

Governance sustainability is about the rules, systems and processes you put in place to reflect how your organization does business. You can think of it as a codification of your values. From who sits on your board, to how management-level decisions are made, to what you prioritize when conflicts arise, sustainable governance is the framework you rely on to lead your business into the future.

Need another reason to reflect on how sustainable your governance practices are? Good governance is good business. Studies show that companies with sustainable governance practices thrive, frequently outperforming the market.

Where to start with ESG

Now that you’ve had a primer (or refresher) on ESG sustainability, you may be wondering where to begin when it comes to your organization’s ESG goals. It can seem daunting, but like any big task, breaking it down into manageable steps is key.

Whether you’re developing your first ever ESG strategy, looking at how to better integrate sustainability across your business, or hoping to bring your employees on board with a clear ESG communication plan, we’re here to help.

If you’ve got questions, don’t be shy to raise your hand! And, if you found this article helpful and would like to take you ESG knowledge to the next level, a LittPark workshop might be right for you. Suitable for experienced leaders looking to build their sustainability credentials, and sustainability experts looking to build their strategy credentials, our workshops equip you to identify and develop a sustainability strategy tailored to your organization.   

It’s never too late to go back to school!