More businesses around the world are prioritising ESG strategies

Global companies are prioritising Environmental, Social, and Governance (ESG) plans as initiatives increasingly recognise the importance of sustainability and employee well-being. A global PwC survey of the wealth and asset management industry revealed an uncommon acceleration towards ESG investments in markets worldwide. Investments are becoming more and more ESG driven.

ESG refers to a yardstick used by socially responsible investors to evaluate possible investments through three main facets: environmental, social, and corporate governance.

Knowing this, companies are now more committed to ESG strategies, making progress toward the 17 Sustainable Development Goals (SDGs) of the United Nations, and demonstrating their dedication to employee diversity, equity, and inclusivity (DEI). As a result, global regulation is currently demanding change and pressuring companies across all industries to integrate ESG into every aspect of their operations. Although past reputational mistakes can destroy a stock's price and erode stakeholders' confidence, the potential rewards are just as strong.

In order to eliminate digital inequality, cut carbon emissions and seize new business opportunities, companies can use IT as the foundation of their ESG transformation, according to Dave Page, founder and chief strategy officer of Actual Experience.

On the reduction of carbon emission, a recent McKinsey report noted the move to net zero, that is, the total reduction in carbon emission, will create £9,566.726 trillion worth of business opportunities annually, including opportunities to expand into new markets, meet shifting investor and customer expectations and recruit and retain top personnel.

The pressure brought on by the rapidly changing regulatory environment adds to these commercial imperatives. Listed companies will be required to disclose information about direct greenhouse gas (GHG) emissions (Scope 1), indirect emissions from purchased electricity or other forms of energy (Scope 2), as well as specific types of GHG emissions from upstream and downstream activities in their value chains (Scope 3), under the new US Securities and Exchange Commission's plans to improve and standardise climate-related disclosures for investors.

However, understanding how to foster change and exhibit real results efficiently presents challenges for businesses in every area. Even though companies have been gathering massive amounts of data over the past 20 years, most boards today agree that there are still major knowledge gaps that prevent ESG policies from being fully supported.

Meanwhile, businesses lack insight into the reality of each employee's individual digital workplace experience. They are unable to set priorities for change or provide the proof of progress that regulators and investors alike need.

Understanding the digital workplace and the distinctive experiences of each employee is increasingly crucial. A company can gain an extraordinary depth of knowledge that only highlights ESG priorities by understanding how each individual continuously feels about their digital workplace in detail.

While many companies have invested heavily in recognising and improving the diversity, inclusivity and well-being of their staff, the shift to remote work has highlighted the digital divide and its impact on employees. Identifying any remote workers experiencing digital inequality and its effects on their productivity, interactions with colleagues and future job prospects over the past three years is essential. This is more paramount today, given that businesses are now more interested in employees' happiness and contentment. Happier employees will more likely work harder and be more productive and loyal to the company they work for.

In addition to achieving ESG goals by eliminating digital inequality, the capacity to prioritise, correct, and improve the employee experience generates bottom-line benefits through increased productivity and employee retention brought on by a happy digital workplace.

Page emphasised the need for senior management to go beyond incremental HR survey data and IT system uptime statistics to fully comprehend the distinctive employee digital experience. He added that they require concrete scientific evidence, including a quantifiable examination of the effects of each employee's digital experience on their well-being, productivity, and inequity. It's a daunting task but essential to the success of any ESG strategy.

For individuals who are committed to DEI, the outcomes can be upsetting. One company found that a staggering 82 per cent of its employees have an unsatisfactory digital experience by converting IT data into a human measure for each employee. Even more concerning was that 1.4 per cent of workers were experiencing such severe effects from a lack of acceptable digital office equipment that it was ruining their lives.

However, identifying these issues also presents an opportunity for companies to prioritise upgrades for particular employees and accelerate adjustments to offer notable gains for those affected.

Extraordinary productivity improvements can be achieved by enhancing the digital employee experience. According to the same organisation mentioned above, employees waste an average of 6.9 days each year due to poor digital workplace experiences, and those with the worst experiences lose as many as 32 days. Improving the digital workplace can thus result in both ESG benefits and significant bottom-line benefits.

In conclusion, corporate value and environmental sustainability can go hand in hand by improving the digital workplace, according to experts. By providing a top-notch employee experience, companies can reduce carbon emissions from staff commuting and business travel and boost productivity. The pace of cultural change will quicken when employees have confidence in their ability to offer compelling digital alternatives to in-person meetings with clients in other countries and when they feel connected to their coworkers wherever they are. Every level of the business community will be urged to see the value of a compelling virtual connection, reducing the amount of travel that is a major source of Scope 3 emissions.