ESG sustainability reporting is the latest trend defining the globe today. Initially, most companies used to engage in corporate social responsibility (CSR) as a duty of care consideration. That was awesome and will help them start a step ahead of others, but ESG sustainability reporting is a lot more than that.
It is the disclosure of a company’s environmental, social, and governance (ESG) impacts with the aim of promoting a better, greener and stronger economy.
The process of ESG sustainability reporting starts with a comprehensive review of an organization’s operations to determine its opportunities and risks. You also need to identify and work with stakeholders to establish what they want.
One of these stakeholders is your company’s staff. In this post, we take a closer look at employees to demonstrate what you can do to promote social sustainability.
Understanding Employees as Important Stakeholders in a Company
The employees of an organization are crucial in helping it implement key policies for success. When it comes to ESG sustainability reporting, employees are even more important because they determine the ultimate success that will be achieved.
Think of a company that aims to cut down emissions using simple methods such as switching off the lamps, computers, and digital communication instead of paper. In such a case, failing to involve the staff is likely to result in disappointment.
When looking at employees as stakeholders, it is prudent to think about their requirements. Although they are selling labor, “what exactly do they want to feel secure, work harder, and enjoy every moment at your company?” Most of them target to see growth in their careers with time, which is supposed to come with both professional and lifestyle changes.
Things to Factor in Your ESG Sustainability Reporting about Employees
The first thing that every staff member will tell you to consider is compensation. Although there are many guidelines that govern the minimum wages, you should target to award staff an amount that is commensurate with the job they do. So, consider carrying some research to establish what other respected brands pay and balance with the company’s returns. Other considerations about staff for ESG reporting include:
1. Hiring Policies
The policies that you install in your company should be designed to promote equality. If you are recruiting for the position of a production line supervisor, the targeted candidates should be assessed based on qualifications, experience, commitment, and soft skills.
However, your firm should not base recruitment on the basis of ethnicity, color, gender or sexual orientation. These negative attributes are what ESG sustainability reporting targets to eliminate.
2. Staff Turnover
When you employ staff, a lot of effort goes into refining and equipping them with new skills. Now, these are the efforts you do not want to go down the drain through high-staff turnover. To address the challenge, you should work on promoting staff welfare.
Consider using programs such as health insurance coverage that extends to their family members, flexible workplace, paid for holidays, and good remuneration. These efforts should be captured on the sustainability report.
Another crucial component you should highlight in your ESG report is the focus on diversity. This means that your work team comprises people from different cultural, racial, and regional backgrounds, working cohesively to achieve the mandate of the organization. Including employees from different genders is also part of diversity.
To make ESG sustainability reporting work for you, include staff as part of the entire plan. Remember that employees are only one part of the reporting process. Other components to focus on include governance and environmental impacts. With all of the components to factor in, there is no doubt that the process can be complex. This is why you should identify good sustainability management software to automate the process.
Article Submitted By Community Writer