Is your ESG policy successful?
Content:
To measure is to know
Most companies have embarked in good spirits on setting up initiatieves that support and steer ESG policy? But how do you measure the evolution of your ESG policy and decide whether you are on the right track? Here is a step-by-step plan to measure the progress and impact of your ESG initiatives.
1. Determine measurable goals: To measure you ESG policy effectively, you have to set measurable goals. Make sure your goals are specific, measurable, achievable, relevant and time-bound (SMART).
2. Collect relevant data: Identify the most important ESG indicators that are relevant for your company and collect data on these indicators regularly. This can include issues such as energy consumption, CO2 emissions, water usage, waste production, diversity and inclusion, well-being, and so on.
3. Establish benchmarks: Comparing your performance with relevant benchmarks is essential in understanding how your ESG policy compares to the standards in the sector. Identify industry-wide standards or guidelines, such as the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB), and compare your performance with these. This will help you identify weaknesses and decide where improvement are necessary.
4. Measure the impact of your initiatives: Measuring the actual impact of your ESG initiatives is a crucial step. This can be challenging, because some effects are difficult to quantify. Use tools such as life cycle analyses, employee surveys and social return measurements to evaluate and measure the impact of your endeavours. This way, you will get a better understanding in the results you have achieved and you can make possible adjustments to your policy.
5. Report transparently: Reporting ESG performance is not only important for accountability to stakeholders, but it can also serve as a valuable communication tool. Use standardised reporting frameworks, such as the Global Reporting Initiative (GRI) or the Task Force on Climate-related Financial Disclosures (TCFD) to structure your data and to communicate clearly. This helps stakeholders understand your progress and build trust.
6. Learn and improve: Measuring the evolution in your ESG policy is an ongoing process. Analyse your results regularly, evaluate your performance and identify areas of improvement. Learn from your successes and failures, and adjust your policy if necessary. This will help foster a culture of ongoing improvement and sustainability within your organisation.
Measuring the evolution of your ESG policy is not easy, but it is vital to make sure you are on the right track and create positive change.
Implementing the People Sustainability Scan as a part of the ESG policy of a company can help measure the effectiveness of social sustainability initiatives, promote transparancy and improve communication with stakeholders. Moreover, it can help achieve ESG goals and create a positive impact on society.
