What has Environmental, Social, and corporate Governance (ESG) got to do with DEI?

Many organisations overlook Environmental, Social, and corporate Governance (ESG) responsibilities because they don’t understand what it means to be socially responsible.

As such, they fail to look at their organisations actions and how these may impact on society or the environment.

But critically, they don’t know how to connect the dots between ESG and Diversity, Equity, and Inclusion (DEI), and how that relates to their business and their people.

Instead, they focus purely on reducing cost and making profits without considering the consequences of their actions.

Actions Speaks Louder Than Words

In a globalised and social-media-oriented world, people have become more aware of what’s happening, and they decide to support a cause about the environment or business across the globe easily than ever before.

As a result, ESG has become a consumer demand rather than a respected business practice. It defines how a company is accountable to its stakeholders, its people, society, and itself.

This practice is about being transparent so others can see your operational practices and motives and measure your impact when you make choices. Therefore, it is about being proactive in prioritising sustainable behaviours in all that you do for the benefit of the environment, your people, and society.

Inclusion Needs to Be A Priority

Fairness, respect, and inclusion need to be a priority within your business. To cultivate this, you need to create a safe workplace where your staff can be heard, seen, participate, and develop without fear.

When you make the conscious decision to create inclusion, your people will feel a sense of belonging to participate, contribute, feel respected and valued. And we know when people can show up without fear they do their best work!!

Building this sense of belonging for your staff, requires a work environment that provides opportunities that are important to them, ensuring your ESG strategies are rooted in open communications and dialogue with your staff, stakeholders and consumers that provide strong partnership for sustained outcomes.

Characteristics used to identify inclusive companies, but Equity is missing

A recent index that ranks organisations based on the diversity and inclusiveness of their workplace has put nine of Australian companies in the top 100 across the world.

The index is composed by global financial market data provider Refinitiv, that used more than 450 Environmental, Social, and corporate Governance (ESG) metrics to examine diversity and inclusion in our world today.

The researchers examined four key pillars – Diversity, Inclusion, People Development, and News & Controversies according to Consultancy.com.au.

Diversity looks at the cultural and gender mix of the board and management, while Inclusion examines the flexibility of working hours, day-care facilities, and disabled friendliness. People development is the extent to which employees grow and are satisfied with the business, while the last pillar self-evidently examines controversies around equality within the firm.

Of the nearly 10,000 global companies examined through this lens – which mixes the metrics into a score out of 100 – nine Australian firms have made the top 100 worldwide. This score puts Australia in third place across the world when it comes to diversity and inclusion, behind only the US and the UK.

Australia’s most inclusive companies

Supermarket giant Woolworths is the top ranked Australian firm, placing 48th on the global list with a score of just over 71 out of 100. In second with an identical score is utilities firm AGL Energy, while pharma company Blackmores ranked third in Australia and 58th globally with a score of 70.5. Following on is biotech firm CSL with a score of just over 70, ranking 61st worldwide.

A notable gap follows on the list, broken by financial services giant Commonwealth Bank of Australia in fifth for the country and number 75 worldwide. The bank fell just short of the 70 points mark, as did funeral service provider InvoCare with an identical score.

The remainder of Australia’s most inclusive companies also scored between 69 and 70, rounding up the country’s presence on the list. In the mix are health insurance firm NIB Holdings, energy company AusNet Services, and retail network Vita Group – bringing up the rear for Australia on the index in 95th place worldwide.

Australia’s notable presence on this index is promising from an economic perspective. Experts suggest that a more inclusive business environment has?tremendous economic benefits , and Refinitiv’s Global Head of ESG Elena Philipova explained how it creates value for individual companies.

“Increased transparency and focus on diversity and inclusion empowers businesses through their sustainable workforce. In turn this generates greater investor, customer and public confidence,” Philipova said.

Equity is about fairness and equitable treatment, access, and opportunity. It is glaringly missing in all of these assessment.

Due to systemic?inequities and systemic racism that is rooted in many structures of society, Equity is difficult to achieve without consistent and dedicated efforts by leaders of businesses.

About the Author

Gloria Tabi ?is a High Degree Researcher specialising in Social Analysis on Race, Racism, Inequalities, Anti-Racism and Gender within Humanities, Communications and Arts at Western Sydney University. Gloria is the Author of?Inclusive Teams & Workplaces: Everyone Wins!! ?She is the Director of?EVERYDAY INCLUSION . As a Black African-Australian woman, Gloria brings well-grounded knowledge and experience of the impacts presented in race and gender.?She is also the founder of the Founder of?VoiceEverydayRacism . Gloria curates these articles to generate discussions about how to be strategic with your workplace DEI efforts. They are?FREE to subscribe.?Visit her?website ?to learn more about services that can be tailored to your specific needs, or book a?FREE 30-minute consultation call ?to see how Gloria can help you elevate your workplace diversity, equity, and inclusion.

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