#3 The Why and The How

Most companies struggle with ESG: initiatives run late and over budget, and fail to achieve the desired impact. 

To avoid this, you must create clarity over why you are doing these things, and how they should be implemented.

3 min read

We’re all busy with our day jobs.

So, who takes the lead on sustainability and social impact initiatives?

Ops, marketing, finance, HR?

Maybe you have an ESG Director, a Sustainability Manager, or even a whole team dedicated to these things.

Yet, despite best intentions, ESG often slips down the priority list and falls into the cracks between departments.

Without the right approach, the ball gets dropped.

If this sounds familiar, don’t worry — you are not alone. Most companies are experiencing this.

Remember, only 3% of companies execute ESG successfully and link it with financial performance.

But there’s one thing that can change this.

It not only helps you implement ESG more effectively but also has the potential to transform your company’s performance.

The Shortcut to Success

Why do you want to reach Net Zero, support local communities or be a B Corp?

What if you asked your team these questions - would you get clear and consistent responses?

To get these things done — and done well — your people need to be motivated to do them.

They need to understand why.

The most powerful way of doing this is to create a clear sense of purpose, shared by everyone in your organisation.

And ensure your ESG initiatives are intertwined with this purpose.

That is the foundation for effective ESG - and ensuring your business achieves measurable improvements to financial performance as a result.

Next week we'll take a closer look at how to define and communicate purpose effectively.

From Why to How

Even if your people are motivated by a shared sense of purpose, you need to ensure this is channeled into effective implementation.

You should approach ESG initiatives as you would any other major project.

There should be a detailed action plan, precise targets and timelines, and clarity over responsibilities.

As we explored in newsletter #1, ESG initiatives are often treated differently to everything else a business does.

They are treated only as a cost, without consideration for the many benefits they can give the business in addition to the social / environmental impact.

Identifying and quantifying these benefits is key to shifting the mindset on ESG initiatives from costs to investments.

It is also fundamental to being able to implement them effectively.

The Top 3% Are Doing This

Understanding the wider business benefits of ESG enables you to identify the metrics that matter, and to set targets.

Once you have done this, you can construct detailed action plans - what steps do we need to take to reach these targets, and over what period of time?

You can then assign responsibilities - who will be accountable for each action?

And you can track your progress at regular intervals, course-correcting where needed.

This is what is needed to create clarity and ensure alignment between departments.

Everyone understands why you're doing these things.

And they know how they need to be done.

Next steps

1. Ask your team why your ESG initiatives are important to the company.  Also gauge how well your staff know your purpose (or vision / mission), and whether they see alignment between values and behaviours.

The most effective way to do this is through an anonymous survey *

2. Reflect on what your company's purpose is and how you might better define it.  Purpose is found at the intersection of: what you can be the best in the world at doing, and how you can make the world a better place. How well do your ESG initiatives align with this?

3. Consider how you currently approach the implementation of ESG: do you have clarity over plans, targets, timelines and responsibilities?

These themes will be explored further in the coming weeks, and I'll share best practice tips that can be implemented in your business.

* Towards Better has developed a questionnaire that assesses the degree of connection to purpose and alignment with values throughout your organisation.

Please let me know if you'd find this helpful.

A sneak peek at next week...

What makes an effective purpose statement?

How is it different to vision and mission?

And how do you ensure that all members of your team understand it and feel a connection with it?

We'll dive into all this next week.

For the time being, you can take a look at this post on Purpose vs Vision and Mission.

The journey towards a better way of doing business

We are on the cusp of a new paradigm of responsible business, and helping impactful companies pair purpose with profit will accelerate the shift.

I believe this holds the key to solving many of our greatest challenges and inspiring positive change throughout society.

If you can think of two or three others that would find this newsletter helpful, I'd be really grateful if you share it with them.

Thanks for your support.