The expectations placed on companies regarding sustainability are high. Those who want to meet them need employees who understand all aspects of ESG. In this article, you'll learn how ESG training determines economic success.
ESG: From optional to mandatory
ESG is on everyone's lips. The acronym stands for Environmental, Social, and Governance — meaning good corporate governance. More and more stakeholders, including investors and customers, are taking these three aspects of sustainability into account when choosing a company. Job applicants are doing the same. Employees increasingly want to work for organisations that have a positive impact on society. Those who don't take responsibility for their actions are giving up significant competitive advantages.
Reporting on sustainable practices is also evolving from optional to mandatory. While currently only large companies in the European Union are required to publish sustainability reports, this group of companies will be gradually expanded over the coming years. Reason enough to engage with the new requirements now and benefit from their advantages.
Here you can find more information on ESG fundamentals and reporting obligations for companies.
Employees are putting sustainability on their agenda too
Achieving the set sustainability goals requires the support of employees. They have the necessary knowledge when it comes to reducing emissions in production processes, implementing recycling programmes, or taking energy-efficient measures. They are the ones who know every cog in the machine and can establish a culture of responsibility within the company.
And they want to be involved. According to the Global Reporting Initiative (GRI), 80% of the workforce wants to be actively involved in implementing climate protection measures at work. So employees are motivated to get stuck in. What's missing is comprehensive knowledge in the area of sustainability. This is where ESG training comes in. Only when the workforce understands all aspects of ESG can they ask the right questions and make their knowledge from their everyday work useful to the company.
No transformation without ESG knowledge. Such questions might be: Why does the clothing industry cause 10 percent of global CO2 emissions, and what does that have to do with the pair of jeans I'm wearing? Why do 85 percent of textiles end up in landfills or are incinerated, when most of them could be reused? How does the circular economy work, what alternative forms of energy generation exist, and how can CO2 emissions along the supply chain be reduced?
ESG, however, no longer stops at such ecological considerations but permeates every area of business. Social aspects and considerations of good corporate governance must also be an integral part of every sustainability strategy. ESG calls for a comprehensive view of sustainability — always with a focus on people.
Because consumers look very carefully at the conditions under which goods are produced. Employees want companies that are aware of their social responsibility and that engage intensively with indicators such as diversity and inclusion, human rights, or occupational health. And investors are increasingly supporting companies with strong governance that have solid structures for managing climate risks and report transparently on climate-related information.
Stakeholders are therefore holding companies accountable when it comes to sustainability. In doing so, organisations must consider all aspects of ESG. This requires the support of the workforce and their comprehensive knowledge in the area of ESG.
In our "ESG 101" course, participants learn all the necessary ESG fundamentals and, upon completion, are able to successfully implement ESG within their company.
Employees as a sustainability asset
Employees should therefore be at the heart of every sustainability strategy. Alongside investors and consumers, they have long since put ESG on their agenda. Companies that recognise this and invest in the ESG training of their employees unlock the potential of their most important asset in the field of sustainability. By doing so, they empower their workforce to ask the right questions, identify pathways for change, and follow them through to the end as committed Climate Rangers.
ESG training for your company?
With our Essential course on ESG, your employees will be ready to understand the importance of ESG for companies and to recognise emerging challenges and opportunities. Build climate competencies in your company now with the help of our Climate Academy!
Interested in more climate protection knowledge for companies?
Find out more on this topic here!
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