How to Manage the Change that Comes with ESG
Over the past little while, we’ve spoken a lot about the benefits of ESG. How it can crystallize your organization’s purpose, support diversity, equity and inclusion efforts, and enhance stakeholder and partner relationships. The business case for adopting environmental, social and governance sustainability is strong, but it’s important to be realistic. Even when it’s designed to achieve a positive outcome, change is hard. It takes commitment, vision, sustained effort, and a willingness to weather challenges.
As with any change, if you’re planning to adopt an ESG strategy, it’s crucial to go into the process with open eyes and a clear plan to manage any resistance or obstacles internally. Based on our work with clients across sectors from health to real estate to nonprofits, here is our best advice for managing the change associated with introducing ESG:
Never Stop Talking about ‘Why’
No doubt, you have a clear vision for why your organization wants to introduce ESG. In fact, you probably have several very, very good reasons for wanting to pursue sustainability. Perhaps it’s about building a purpose-led culture, moving beyond philanthropy to a fully integrated approach for organizational citizenship, or wanting to have a more compelling impact story to tell.
Whatever your reasons, it’s critical to know them and talk about them. A lot. People tend to oppose what they don’t understand, but when they’re clear about why change is happening, they’re a lot more willing to support it, even if it involves challenges or uncertainty.
Empathy is Everything
People experience a huge range of emotions when faced with change in their personal and professional lives. So much so that psychologist Elisabeth Kubler-Ross’s well known model for the stages of grief is applied as a standard tool by change managers who need to understand and work with the sometimes big feelings experienced by employees when change is introduced. Why does understanding and supporting employees’ emotional state matter? Because shock, frustration and denial can quickly turn into resistance, and can derail change efforts before they’ve had a chance to work. On the other hand, moving through the change curve quickly and smoothly promotes fast adoption, minimizes disruption and promotes high performance.
Here are just some of the things your employees might feel as ESG is introduced:
A sense of grief or loss for old ways of doing things
Frustration that work they’ve done in related areas is now redundant (especially if it’s something they took particular pride in)
Confusion about what the values and culture of the organization are
Fear that there may no longer be a place for them, or that they won’t fit in anymore
Disinterest in the change – they just want to get on with their day-to-day role
Jaded, because new changes are always being dreamed up around here, but they never make a difference.
Once you’ve been able to put yourself in your employees’ shoes, it’s easier to communicate with those who may be struggling with the change, and support them to reach acceptance and even enthusiasm for new ways of doing things.
Leading from the Front
Sustainability is a business growth driver – companies who do ESG well see greater productivity, lower turnover, attract better talent, build better partner relationships… the list goes on. But unless you know quite a lot about ESG, it can appear to be a ‘nice to have’ at best, and a cost at worst. This is one of the reasons that reinforcing your ‘why’ is critical when implementing your new sustainability approach, and it’s also crucial that the project is not just endorsed, but spearheaded by your organization’s most senior leadership.
When change is difficult, employees want to know that the change matters – that it’s strategic, and a clear priority for the business’s leaders. We strongly recommend that the CEO take the lead on ESG implementation or, at minimum, be the face of the project for internal and stakeholder communications.
Find the WIIFM
We spoke earlier about empathy. When change leaders make the time to listen openly and respectfully to employees (particularly any resistant ones), they can usually get to the root of why the change is, or is not, welcome.
This in turn allows you to find that individual or group’s WIIFM – their ‘What’s in it for Me’. For example, a People and Culture professional who is concerned about having significant responsibility for ESG under the new approach may be attracted by the career progress on offer with additional exposure to the board and senior leadership team. A supply chain manager frustrated about having to review existing agreements may be pleased at the opportunity to replace a difficult supplier.
Respectful listening goes a long way.
There are, of course, many more steps you can take to smooth the path to ESG implementation. Maybe you’ll establish a network of peer-level change champions, build a steering committee from across the business, or do something as simple as celebrating milestones with an office pizza party. You’d be amazed how many hearts and minds you can win with pizza!
