Overcoming the Challenges of Launching an ESG Program

Organizations often struggle to implement effective sustainability programs that contribute meaningfully towards achieving net zero goals. Launching an ESG program can be overwhelming. A recent article from Epiq provides some tips on the best way to get started in the Environmental, Social and Governance space.

Epiq suggests taking a phased approach to launching these programs. A good starting point is looking at what practices and components your company or organization already has in place. This could mean looking at something like back office services or records digitization to determine if they are happening in a sustainable way.

The article also suggests developing a mission statement aligned with core values to further define goals and identify stakeholders. For example, digitizing records can save costs, reduce paper use, lower carbon footprints, and enhance efficiency through cloud storage.

Formalizing these initiatives helps align ESG goals with frameworks like the Social Cost of Carbon (SCC) and the Corporate Sustainability Reporting Directive (CSRD) that provide a foundation for evolving the program as regulations change.

Best practices for ESG programs include determining the materiality of initiatives and securing leadership support. Materiality highlights the most relevant issues, facilitating leadership buy-in and effective implementation. For instance, the Health Sector Climate Pledge aims to halve emissions by 2030, prompting healthcare organizations to streamline operations and supply chains, thereby garnering leadership support.

Integrating ESG into business strategy is vital for long-term success. Effective practices to monitor sustainability performance help organizations track progress, make necessary adjustments, and achieve ESG goals. Well-integrated ESG efforts can reduce carbon footprints, enhance workflows, discover new opportunities, mitigate financial risks, and increase organizational longevity.