Why Everyone Should Be Trained On ESG

For an organisation looking to bolster its ESG efforts, appointing an ESG Executive is a start, but fostering a company-wide culture of sustainability is where the real journey begins. Let's explore how to truly embed ESG principles across your organisation.

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Picture the following scenario;

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A new Environmental, Social, and Governance (ESG) Executive has been appointed. She is trying to have sensible discussions with the rest of the Executive Team, but it's not having the right impact. There is a lack of urgency, and everybody is not on the same page.

The whole Executive team is being sent on ESG training. Great. Did that improve the situation? Absolutely. Is it enough? No, it's not.

Although new initiatives and strategic imperatives must be driven from the top, it is just as important to get company-wide buy-in. Embedding ESG principles and goals throughout your entire organisation is crucial for the successful implementation of an ESG strategy.?

When sustainability becomes a company-wide endeavour, and employees at all levels understand how their actions contribute to the company's broader ESG goals, several benefits emerge:

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1. Alignment with Goals: Employees throughout the organisation are aligned with the company's sustainability objectives. They understand the importance of ESG factors in achieving the organisation's long-term goals.

2. Ownership and Accountability: When every line of business recognises its role in sustainability, it takes ownership and is accountable for its actions and their impact on ESG performance.

3. Efficient Data Collection: With broad-based awareness and commitment, collecting data becomes more efficient as part of the daily routine. Teams are more likely to track and record relevant sustainability information accurately, in a format that is usable to the finance and ESG teams who have to report on the data.

4. Innovation and Collaboration: Cross-functional collaboration often leads to innovative solutions and best practices. Different departments can share knowledge and experiences to drive sustainability improvements.

One example is Walmart, which reduced the packaging size of their toy trucks so they could fit more units in one delivery, meaning they then needed fewer trucks on the road. They saved USD 3.5 m on transportation costs while using fewer resources. Two staff members at Walmart generated this idea.

5. Improved Reporting: When sustainability practices are integrated into daily operations, reporting becomes a natural outcome rather than an additional burden. It's easier to compile data and communicate progress when it's an integral part of business operations.

6. Risk Mitigation: Employees who understand the ESG risks associated with their roles are better equipped to identify and mitigate those risks proactively.

7. Employee Engagement: Engaging employees in sustainability efforts can boost morale and job satisfaction, as many employees are increasingly drawn to purpose-driven organisations.

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To effectively embed ESG into your whole business, consider the following steps:

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1. Education and Training: Consider short, engaging courses that are aimed at awareness and speak to your specific industry. If you can find courses that are customised for your company, even better. Also, consider courses for select staff requiring a working knowledge of ESG (such as those who will do the ESG reporting or integrate ESG into the company strategy)

2. Clear Communication: Establish clear and transparent communication channels for employees to discuss, share, and report on sustainability-related matters.

3. Metrics and KPIs: Define key performance indicators (KPIs) and metrics that are relevant to each department's operations and tie them to the organisation's overall ESG objectives.

4. Cross-Functional Teams: Create cross-functional teams or committees to oversee and coordinate sustainability initiatives across different departments.

5. Recognition and Rewards: Consider recognising and rewarding employees and teams that contribute significantly to sustainability goals to encourage participation and motivation.

6. Regular Updates: Keep employees informed about the organisation's sustainability progress through regular updates and reports.

By fostering a culture of sustainability and making it an integral part of your organisation's DNA, you can not only streamline ESG reporting but also drive positive environmental, social, and governance outcomes that benefit your business and society as a whole.

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IBTC has a range of ESG short courses, ranging from one hour to a full day, aimed at raising awareness across the organisation, as well as short courses that provide a working knowledge of ESG for those in technical, or strategic roles. IBTC customises its ESG programmes (which are sourced globally) for the local market and to meet client-specific needs - meaning you get courses of a world-class standard, adapted to your business and your industry, delivered locally