What does it take to commit to ESG?
Environmental, social and governance (ESG) is an actionable commitment that companies can invest in to make the world a better place. ESG investing relies on independent ratings that assess what a company says and does for the environment, social justice and governance issues.
Here’s a closer look at the three criteria used to evaluate companies for ESG impact.
- Environment. What kind of impact does a company have on the environment? This can include a company’s carbon footprint, toxic chemicals involved in its manufacturing processes and sustainability efforts that make up its supply chain.
- Social. How does the company improve its social impact, both within the company and in the broader community? Social factors include everything from LGBTQ+ equality, racial diversity in both the executive suite and staff overall, and inclusion programs and hiring practices. It even looks at how a company advocates for social good in the wider world, beyond its limited sphere of business.
- Governance. How does the company’s board and management drive positive change? Governance includes everything from issues surrounding executive pay to diversity in leadership as well as how well that leadership responds to and interacts with shareholders.
How can companies make lasting commitments to ESG?
Setting your business up for net positive impact is easier when you do it with peers, says Mika Unterman of Apical. Her newly-founded newsletter series is all about putting accessible, actionable information about ESG practices into the email inboxes of cannabis industry leaders.
Here are the three reasons why she says ESG is better when done collaboratively.
1. Saying it out loud makes it real
You can start using implementation intention in your day to day to make small and meaningful pivots towards your goals.
2. “Ask the Audience” is right 92% of the time
Find a group of peers to help work though the execution, learn from their experience.
3. Psychologically safe spaces help you grow
Trust your peers to help you increase your positive impact and work together towards a collective good.
Read the full article, “What does it take to commit to ESG?” on Medium.
Apical will be dropping #BigESGEnergy into inboxes in the coming months. Do you know a cannabis or manufacturing entrepreneur who is also an ESG nerd? Do them a favour and let them know about Apical’s newsletter.
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