Tuesday, 16 April 2024
    Holistic leadership needed on ESG
    24
    Jan
    ESG

    Holistic leadership needed on ESG

    Companies should go beyond ESG box-ticking compliance and adopt a sustainability mentality for long-term futureproofing, writes RP Satpathy, business unit head, manufacturing and utilities, TCS Australia and New Zealand, Ecogeneration reports.

    Environmental, social and governance (ESG) practices dominate corporate agendas today, but now is the time for businesses to not only pledge commitment, but act in fostering an ESG-centred mentality and invest in long-term strategies.

    According to the TCS Asia Pacific Digital Sustainability Index, as Australian businesses seek ways to create value and improve resilience they have turned to embracing and growing their sustainability credentials. However, businesses need to do more than just tick the boxes because it is clear embedding sustainability at the core of a business will amplify opportunities for growth and build positive outcomes for people, profits and the planet.

    Alongside the environmental pillar, there is a growing prevalence of the social and governance aspect of ESG practices. This is because the voices of consumers and employees calling for companies to align with these values are getting louder. Key stakeholders are increasingly vocal in calling on companies to improve their societal impact.

    As a result, companies need to shift the way they think about ESG practices and place equal value on the social and governance components as they do on environmental. According to leading studies, environmental, social and governance are intersectional, meaning people have the power to voice their concerns about the social impact of the climate-change emergency and companies must respond and consider how they action ESG practices, taking onboard growing social concerns.

    In Australia, taking such action is necessary as there are already immediate social issues at stake in the climate crisis, where specific Australian communities could be disproportionately impacted by the global shift to meet sustainability targets. Therefore, Australian businesses that invest in going green but overlook social issues face significant commercial and reputational risks.

    Establishing a clear transformation journey aligned to an organisation’s purpose is critical for a company to determine which areas of sustainability to focus on first. At TCS, our experience has shown that sustainability journeys are optimised when a company exercises steward leadership across its ecosystem of internal and external stakeholders, which includes the value chain, industry and markets.

    Developing a mature ESG-strategy mentality takes time. While this process is underway, each stakeholder group has a unique role to perform so momentum is sustainable.

    FULL ARTICLE

    Holistic leadership to fill environmental, social and governance gap (Ecogeneration)

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