By Blandine CORDIER-PALASSE, La Revue RH&M N°87
When we talk about ESG, the reflex is to focus first on environmental issues (the E in ESG), then on the social and societal issues covered by the S. However, without good governance (the G in our acronym), there is a risk of scandal. Major groups such as Accenture, Wirecard, Renault and Volkswagen have unfortunately experienced this.
5 pillars for a robust and effective ESG strategy :
1. Getting involved Whether it is driven by the Executive Committee or the Board of Directors. The commitment must be consistent with the company's culture and strategy. It needs to be formalised and announced to get teams on board. Taking part means joining local initiatives, depending on the industry: to show that commitment is not greenwashing.
2. Getting organised. Provide the human and operational resources to succeed by forming a team - and appointing its contacts within the subsidiaries - and by defining its governance and vertical and cross-functional information channels.
3. Define and implement an action plan The first step is to select the key ESG issues for the future. The first step is to select the key ESG issues for the future - in line with the company's development strategy and culture. Roadmaps then need to be developed. Finally, we need to set improvement targets, deadlines and KPIs.
4. Monitor progress and produce reports
5. Communicating and ensuring transparency, a vital step in moving the yardsticks and changing the indicators.
While taking ESG criteria into account is still a challenge for some companies, listed companies have come to realise that ESG is a key factor in developing their performance, enhancing their image and ensuring their long-term future. Financial data is no longer enough. According to the French Ministry for Ecological Transition, good non-financial CSR reporting is needed to communicate the social, environmental and societal implications of a company's activities and its mode of governance. Implementing CSR reporting requires specific operational skills: a mastery of regulations, data management, knowledge of KPIs and an appetite for innovation.
The technical skills may not be the same as for compliance. However, the objectives - to ensure the company's long-term viability by reducing risks and establishing a deeply ethical culture - converge. And the soft skills needed to achieve them are aligned and very similar.
What's in it for HR?
The integration of compliance into the organisation of companies is almost 10 years ahead of ESG. Those that have put in place robust programmes and structured teams have minimised their risks in a world of ever-increasing regulatory requirements. Those that have chosen to put compliance at the heart of their strategic thinking are ahead of the game.
Think ahead! Structure your organisation and strengthen your ESG teams with talents who will be able to engage managers and employees in a sustainable and profitable development for the company.
Key words: Environment, Social issues, Societal issues, Governance, Compliance, Human resources, Responsibility.
