C4EM hosted its final breakfast for 2024 last week, with Cat Hart, Senior Sustainability and Environmental Consultant from Toyota Australia.
The topic was ESG – Environment, Social and Governance. ESG is an evolving space, but it basically comes down to achieving sustainability and longevity without compromising the needs of the next generation.
‘People are holding businesses to account now and expecting them to do more,’ Cat said. ‘And it can give businesses a competitive advantage.’
‘Environment is the easiest area to start with because it’s measurable. For example, installing solar panels, improving lighting, heating, cooling.’
Environment examples include:
Climate Change and Carbon vulnerabilities
Water Waste and Pollution
Circular Economies
Renewable Technologies
Pollution
Resources
Biodiversity
Social is difficult to measure and quantify. For example, how can you measure the benefits of responsible sourcing of materials, or how many benefits have been obtained from allowing staff to volunteer during work hours?
Social examples include:
Human Capital Development
OH&S
Supply chain and labour rights
Ethical Sourcing
Data privacy and Security
Community Engagement and First Nations considerations
Diversity and inclusion
Consumer responsibility
Governance, according to Cat, is the least exciting of the three components.
‘It’s not flashy, but super important to get right,’ she said. ‘When things go wrong, the root cause is often not having governance in place.’
‘Governance is the fundamental side of ESG that you really need to think about to make sure other areas provide a sustainable impact.’
Governance examples include:
Leadership and governance
ESG Reporting
Risk Mitigation and Management
Board Diversity
Business Ethics and culture
Policies to enhance corporate behaviour, including protection of human rights
Board independence and diversity
Stakeholder management
Anti-corruption and bribery
Cat suggested several ways to start the ESG journey.
Expectations: understand your stakeholders, regulatory obligations, customer standards, supply chain requirements, and staff needs and wants.
What are the impacts: think beyond the cost; what are the positives and negatives; product lifecycle; how does your suppliers’ decisions impact you.
What is important: prioritise and narrow your focus to use resources effectively, align your values so you know what you’re trying to achieve, your ability to influence.
Commit: set a clear direction, a top-down commitment is vital, define roles and responsibilities.
The best thing to do, according to Cat, is get started!
Highlights to take away included:
Progress over perfection: this is a complex and evolving area, with few easy decisions and ongoing tensions.
Be resourceful: prioritise, be clear, relatable, actionable.
Good data is vital: validation is important, but don’t get caught in numbers.
Share your stories: be honest and transparent, and own your successes as well as the mistakes.
Get help: from industry, customers, supplies, staff, consultants.
‘Every step forward is a step in the right direction.’
Comments