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Running a business isn’t just about financial performance. Today’s consumers, investors, and regulators care deeply about organizations’ efforts to show accountability and responsibility in their business practices, especially in regard to environmental and social issues. For an organization to understand and align on environmental, social responsibility, and corporate governance matters, they should create an ESG policy.
ESG initiatives can take various forms to address different causes. Read on to learn more about the importance of ESG and see some common examples of ESG goals your board can adopt.
What is Environmental, Social, and Corporate Governance?
Environmental, social, and corporate governance refers to the framework organizations use to measure their sustainability and societal impact across 3 pillars:
- Environmental: How is the company improving and protecting the environment? What conservation measures is it taking to reduce its energy consumption, pollution, and ecological footprint?
- Social: Today’s companies must be responsible for their overall impact on the social fabric. This includes how they treat employees and show support for local communities.
- Corporate governance: Do organizations behave ethically? Do their actions match their policies? Are they compliant? Organizations must show diversity and structure that supports social and environmental initiatives.
ESG goals are specific objectives that companies set to drive improvements in these three areas. The board plays a critical role in establishing, monitoring, and guiding these goals, ensuring they align with the company’s values and long-term strategic objectives.
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15 Simple ESG Goals
Looking for ESG goals to implement in your organization? An ESG consultant can help, or gain inspiration from the following ideas.
Environmental Goals (Sustainability & Resource Management)
- Reduce energy consumption by switching to LED lighting and energy-efficient appliances, including refrigerators, microwaves, and air conditioners.
- Lower carbon footprint by encouraging employees to walk to work, reducing business travel, or promoting remote work.
- Implement a recycling program to reduce waste in the office.
- Source sustainable materials for packaging and products.
- Reduce water usage by installing water-efficient fixtures, including faucets.
Social Goals (Diversity, Equity, & Inclusion)
- Increase diversity in the workplace by setting specific hiring targets for underrepresented groups.
- Ensure equal pay by conducting routine annual salary audits.
- Offer mental health support through employee assistance programs.
- Support local communities by partnering with charities or encouraging employees to volunteer.
- Improve employee well-being with flexible work policies and wellness programs.
Governance Goals (Ethical Business Practices & Compliance)
- Strengthen data privacy policies to protect customer and employee information.
- Promote ethical sourcing by partnering with responsible suppliers and shippers.
- Enhance board diversity by including more women and minorities in leadership.
- Improve ESG reporting by publishing an annual sustainability report.
- Implement anti-corruption policies and provide ethics training.
When finalizing ESG initiatives, it helps to make specific, measurable, achievable, relevant and time-bound (SMART) goals to simplify ESG reporting.
Getting Started With OnBoard
Boards are responsible for learning and understanding ESG standards and guiding their organizations in improving their ESG ratings. In addition, they should prepare for ongoing discussions with regulators and investors to understand key ESG concerns to prioritize.
Store your ESG policy and goals securely and digitally using a proven board management platform that grants your entire organization access. Tools like OnBoard’s board management software offer intuitive, data-informed features to help boards build board materials, get work done faster, and communicate effectively. Within the platform, boards can facilitate online discussions and share crucial documentation to move ESG initiatives forward.
Ready to level up your board business with board portal technology? Check out our Board Management Software Buyer’s Guide for more information on selecting the right vendor.
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About The Author
- Adam Wire is a Content Marketing Manager at OnBoard who joined the company in 2021. A Ball State University graduate, Adam worked in various content marketing roles at Angi, USA Football, and Adult & Child Health following a 12-year career in newspapers. His favorite part of the job is problem-solving and helping teammates achieve their goals. He lives in Indianapolis with his wife and two dogs. He’s an avid sports fan and foodie who also enjoys lawn and yard work and running.
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