Energy Companies Must Think Beyond the “E” in Their ESG Strategies
Smart businesses know that an ESG-focused business strategy creates a competitive advantage that contributes to a strong corporate culture, enhances relationships with stakeholders, and creates opportunities for increased access to capital.
The best sustainability strategies are realized when each initiative receives equal attention but for energy companies, environmental goals tend to receive the bulk of their time and resources.
A holistic approach to ESG—one in which environmental, social and governance initiatives each have equal footing—is a clear indication that your business prioritizes the communities where it operates, its employees, and purpose-driven leadership. Consciously thinking beyond the “E” in your ESG strategy bolsters the long-term sustainability of your business and creates a unique opportunity to establish and grow your organization’s reputation and value among wide-ranging stakeholders.
Your company’s social initiatives, which at the most basic level should include engaging with employees, connecting with the community and bolstering social investments, are vital components of trust, reputation, and license to operate.
Your organization’s culture and values originate in its governance policies. Criteria that include ethics and transparency, standards of business conduct, inclusive leadership, and policy engagement set the tone for your operation—and their critical importance cannot be overstated.
At their core, social and governance initiatives are all about people and in the end, it is people who carry out your strategy.
Establishing and exceeding environmental benchmarks is critical for all energy operators, and it always will be. When you do the same for your social and governance programs, you are positioning your organization to create successes and positive impacts through a more holistic approach to sustainability.
Impacto is a leading strategy and communications firm that partners with organizations to create sustainability solutions and custom ESG frameworks that drive growth, build trust, and make a positive impact on the world.