by S. Bahu | March 16, 2020 | 5 Min Read
The Benefits of Environmental Social Governance Training (ESG)
Corporate Social Responsibility (CSR) is probably a familiar term for most businesspeople. But, have you heard of “Environmental Social Governance training,” or ESG, before? Well, now you have and we hope to give you more context on ESG principles and its benefits.
The focus on ESG training has grown tremendously over the last several years. The value of ESG investing is now estimated at over $20 trillion. If you're not investing in ESG training at your company, you could fall behind competitors before you know it.
Read on to learn more about ESG and how it helps your organization become a better corporate citizen. You'll also learn the importance of CSR, ESG, and why they are both good for today’s businesses.
What is Environmental Social Governance Training?
Now might be able to answer the question, "What does ESG mean?" But, do you actually know what ESG is?
If not, that's okay. We're here to give you answers on this and other relevant questions, such as "What are ESG principles?"
The primary goal of ESG training is to learn how to evaluate your company’s environmental impact and assess socially responsible investments. Younger investors, in particular, want to make sure their investment decisions are in line with their values, such as sustainability and social responsibility.
The more businesses learn about their larger environmental and social influence, the more they can make wiser, corporate choices.
ESG Certification for Companies
The goal of ESG training is to ensure organizations are being good corporate citizens. As a result, this attracts ESG investors who want to make a socially responsible investment (SRI).
ESG certification for companies is available to begin meeting the expectations and standards of future investors. Here are several principles that are covered during an ESG training course.
ESG experts look specifically at the effects that the business has on the overall environment. Additionally, they will assess criteria like energy usage, pollution, waste, animal treatment, and conservation of natural resources. Noting potential environmental risks is a high priority and the steps the company is taking to manage or mitigate those risks.
During ESG training, employees and business owners learn steps they can take to minimize the negative impact they may be having on the environment. Most importantly, they learn how to maximize their positive environmental contributions.
When evaluating a company's corporate social responsibility score, internal and external relationships are considered.
Part of ESG training involves business owners and employees learning what they can do to make the company more socially responsible.
During the evaluation process, ESG experts consider the company's business relationships. This includes its engagement with suppliers and whether they uphold company values. It can also include donations the company makes to community organizations and any volunteer work its employees participate in.
Social evaluations also assess the company's working conditions for health and safety. Outside of direct business processes, ESG experts consider the interest a company takes in its stakeholders' well-being and feedback.
Finally, we can't forget about governing principles.
ESG experts and potential investors will want to know what accounting methods companies us. Are those methods are accurate and transparent? They will likely ask whether stakeholders are given an opportunity to vote when important issues arise.
ESG training and evaluations commonly address any conflicts of interest among the company’s board members. ESG investors avoid working with companies that use political contributions to receive unfair advantages or engage in any illegal or questionable practices.
4 Benefits of ESG Courses
ESG training helps create good corporate citizens. Here are some reasons why CSR and ESG positively elevate businesses.
1. Positive Brand Identity
When business owners and employees are known for being good corporate citizens, it helps your company develop a positive brand identity. People will tend to think more highly of your business, creating a sense of trust, and more easily get behind your mission.
2. Attract New Clients and Investors
A positive brand identity attached to your business is attractive to new clients and consumers. A business with vetted and recognized social and environmental standards is also appealing to new investors. Fiscally responsible ESG investors will be more open to supporting a company that is interested in the greater good, not just profit.
3. Attract Better Employees
In addition to attracting more investors and clients, upholding strong ESG principles can also draw in high-quality employees. Being an ethical corporate citizen pays off. Company’s that uphold CSR attract more loyal, qualified employees and see boosts in financial performance.
4. Reduce Risk
Less risk is associated with running a business when you make CSR and ESG principles top priorities. Firms that are motivated to “go green” tend to see lower risk, which is a huge factor that investors take into account. Be dedicated to running an ethical, environmentally aware company. As a result, you are likely to see long-term growth, especially as the focus on ESG continues to grow.
What to Look for in ESG Training Courses
Are you convinced that Environmental Social Governance Training should be part of your employee training plan? Are you unsure of what to look for when searching for the right ESG training program?
If so, here are some tips to keep in mind:
Consider Training Methodology
Start by considering the modalities in which the training information is delivered. Think about which method(s) will work best for you and your employees before making a decision.
Determine The Right Time
Choose the right timing to engage in company-wide ESG training. Look for a time in the year that employees may have more flexibility and bandwidth to handle extra material. This will help them (and you) be more engaged and ready to implement resulting in lasting changes.
Find Out How Progress Is Monitored
Take note of how progress is monitored. How do you determine your employees' performance during the course? How will you measure what they're retaining and how effective the information is? Consider the same criteria you may look for when tracking employee training in a learning management system.
Engage in Environmental Social Governance Training Today
Now that you know more about what ESG training is and the benefits it has to offer, are you ready to start pursuing it for your team? If you want your business to become an example of good, corporate social responsibility, look into ESG training.
Follow the guidelines listed above to find the right course for yourself and your employees. It might be daunting at first, but you'll be climbing the pyramid of corporate social responsibility in no time.
The start of every new year is a chance to revisit training goals and aspirations for the coming 12 months. How do you know what’s worth your investment?