ESG what about me?

Just in case you have been living under a rock! ESG is a framework used by investors to evaluate the sustainability and societal impact of companies and their business practices.

However, if you are asking what ESG means for you, it could depend on your level(s) of involvement with companies, their products (or outputs), and investments that are evaluated using this framework.

But don't forget it's not just about you. It's really about the greater good for all.

As an individual, you may choose to consider ESG factors when making investment decisions or when choosing which companies to support as a consumer.

Additionally, if you work for a company, it may be important for you to be aware of and understand the company's ESG performance, as it can affect its reputation and financial performance.

So how does ESG affect me as an employee?

ESG (Environmental, Social, and Governance) can affect employees in a number of ways. For example, a company with strong ESG performance may be more likely to prioritise employee well-being and have better working conditions, which can lead to a more positive work environment.

Additionally, companies with strong ESG performance may be more likely to have a positive reputation, which can lead to stronger job security and more opportunities for advancement.

On the other hand, if a company has poor ESG performance, it may be more likely to engage in unethical practices, which can lead to a negative work environment and a weaker reputation.

Additionally, companies with poor ESG performance may be more likely to face legal and financial risks, which can affect the job security and financial stability of employees.

If you are an employee, it may be worth considering a company's ESG performance when looking for a job or evaluating your current employer, as it can provide insights into the company's values and priorities, as well as its potential risks and opportunities.

How does a companies ESG outcomes affect me as an individual?

ESG outcomes of a company can affect individuals in a number of ways, depending on the level of their involvement with the company and its products or services.

As a consumer, if you choose to support companies with strong ESG performance, it can contribute to creating a market demand for sustainable and socially responsible products and services.

As an investor, if you choose to invest in companies with strong ESG performance, it can support the growth and success of sustainable and socially responsible businesses.

As a citizen, if companies in your local area have strong ESG outcomes, it can contribute to the overall sustainability and well-being of your community and the environment.

Additionally, companies with poor ESG performance may engage in practices that can have negative impacts on individuals and communities, such as pollution, exploitation of workers, or human rights violations. By understanding a company's ESG performance, you can make more informed decisions as a consumer, investor, or citizen.

How can you balance positive ESG outcomes with personal lifestyle changes?

Balancing positive outcomes with personal lifestyle changes can be challenging, as it often requires making trade-offs between short-term convenience and long-term sustainability. However, there are several steps that individuals can take to help align their personal lifestyle choices with positive ESG outcomes:

1. Educate yourself: Learn about the environmental and social impacts of different products and services, as well as the ESG performance of different companies.
2. Make informed purchasing decisions: Consider the ESG performance of a company and the environmental and social impacts of a product before making a purchase.
3. Support sustainable and socially responsible businesses: Prioritise companies that have strong ESG performance and promote sustainable and socially responsible products and services.
4. Reduce consumption: Try to consume less overall, and focus on products that are made from sustainable and renewable materials.
5. Reduce waste: Try to reduce, reuse and recycle as much as possible, also try to avoid products with excessive packaging.
6. Energy Efficiency: Look for ways to reduce energy consumption in your home, such as using energy-efficient appliances and lighting, and consider investing in renewable energy sources.
7. Transportation: Consider walking, biking, or using public transportation instead of driving a car, and if you have to drive, consider a hybrid or electric vehicle.

It's worth noting that it's not always possible to make perfect choices, but every little step towards a more sustainable and responsible lifestyle can make a difference.

As an individual how can you gauge a companies true ESG impact?

As an individual, gauging a company's true ESG impact can be challenging, as companies may present information in a way that is favorable to them, and not always fully representative of their true impact.

Personally (and not just because I have a vested interest) my feeling is if an organisation is gathering data in a disconnected fashion its likely riddled with errors. Wrong data (including data that has been double counted), misaligned timings, noise, ... and this list goes on.

However, there are several ways to gauge a company's true (or perceived) ESG impact:

1. Check independent ESG ratings: There are a number of independent organisations that rate companies based on their ESG performance.
2. Look for third-party certifications: Some organisations certify products and services based on their environmental and social impact, such as Fairtrade, Forest Stewardship Council (FSC), and Rainforest Alliance.
3. Check for transparency: Look for companies that disclose their ESG performance through reports, such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB)
4. Look at the company's track record: Look at the company's past actions and performance to get an idea of its commitment to ESG issues.
5. Engage in dialogue: Reach out to the company and ask them questions about their ESG performance, and their plans for the future.

By using a combination of these methods, you can gain a better understanding of a company's true ESG impact and make more informed decisions as a consumer, investor or citizen.

Ultimately it's about context. Context of the organisation, the environment, your personal situation and so on. And that's the point I'm trying (perhaps badly) to make. In a disconnected planning and reporting environment there is no real transparency so informed decisions can not be made effectively.

As always I welcome any feedback. Let's start (or continue) the conversation. I can also point you towards a few ESG based webinar recordings I have organised over the last 2+years ...

... and finally if you would like to join one of my roundtables or webinars... or just have a topic / angle you would like explored more! Then please let me know.

You might even be interested in one of my ESG PLANATHONS??? .... https://bit.ly/2023_esg-planathonANZ