9 minute read
Trends
What is ESG?
Ignoring it erodes organizational value
NANCY FORAN
FCPA, FCMA, C. DIR. PRESIDENT & FOUNDER OF ESG PARTNERS INC.
INFO@ESGPARTNERS.CA
Every business will have impact on environmental, social, and governance (ESG) factors, whether it is something they track or not. We have made progress because it wasn’t that long ago that most organizations didn’t even know how to spell ESG. Today, organizations that are paying some kind of attention to ESG are seeing how it can create value. These organizations also understand that ignoring ESG erodes value. Here are the ESG highlights:
Environmental includes energy use, waste management and climate change.
Social includes labour relations, human rights, diversity and inclusion, the rights of indigenous peoples and product liability.
Governance includes compliance, ethics, controls and procedures.
The individual aspects of ESG are intertwined, and one area can’t (or shouldn’t) be traded for another.
To highlight this point, let’s consider a well-known 2015 example. I expect we all know someone who owned a Volkswagen when the news broke that defective devices were installed on 11 million vehicles in order to pass (or cheat) emissions tests in an effort to deceive customers and regulators. Company costs were massive when this deception was revealed. Between dollars spent on recalls, loss of public trust, and declines in investor ratings, the economic impact to VW was tens of billions of dollars. Had a system been in place to assess the full range of ESG risks facing the company, VW’s corporate governance practices––coupled with their recent elevated warranty expenses––would have raised a red flag for investors.
While ESG is not new, it has undeniably grown in importance in recent years, and the COVID pandemic shone an even brighter light on the importance of ESG issues. The practice of ESG actually began in the 1960s as socially responsible investing. Then, the focus was more on the exclusion of certain stocks or industries from investment portfolios based on business activities deemed not to be socially responsible (think tobacco, child labour, etc.). Today, many of the same ethical concerns continue; however, the field of ESG has evolved and is not necessarily focused on negative screening practices but, rather, on the alignment of investment strategies with broader societal values and a more holistic assessment of risk.
Improving risk management is a key benefit of ESG integration, with institutional investors recognizing that risks related to ESG issues can have a measurable impact on a company’s market value and reputation. In addition to the example cited earlier, consider the impact on a company’s brand after a worker safety incident, waste or ecological impacts, and weather- (or pandemic) related supply chain disruptions. Attention has also been turned to companies’ resilience strategies in the face of climate change and the systemic risk it presents.
It’s not just institutional investors who are concerned about risk. We are increasingly seeing early-stage investors begin to integrate ESG into their investment analysis and decision-making process. These investors consider the full impact of companies that are more diverse and inclusive, conscious of their employees' health and safety, able to serve their communities, and understand their environmental impact.
As the investment community increasingly relies on ESG criteria to assess risk and make informed decisions, so too are a broad range of stakeholders––including consumers, employees, suppliers, and local groups who are expecting businesses to align their goals with those of society, who will appropriately hold them to account. It’s no longer about simply wanting to do the right thing; the public is now demanding transparency and sustainable action from the companies with which they engage.
Businesses that don’t embrace sustainability and ESG will most definitely be left behind. Those that do will become more competitive, resilient, attract talent and capital, and be able to add value back to the communities where they operate.
Home versus home office
Weighing out the pros and cons
JUDITH KAYS
PROFESSIONAL COMMUNICATOR
JUDITHKAYS@EASTLINK.CA
Just over a year ago, when the majority of us began working from home, we eased into new routines nicely. We became more collaborative, resourceful and efficient. We completed reports, got the laundry done, made sales, walked the dog, answered emails and had dinner on time. We mixed work with home because we were forced to; however, it soon became difficult for many of us to separate work from the rest of our lives, simply because our home also became our office.
The notion of ‘leaving work at the office’ and going home to your ‘balance’ has completely changed. This new way of working, from home, for many small and medium sized business employees may continue into the foreseeable future. A recent Stats Canada survey revealed that in Nova Scotia, 33 per cent of employees could work from home and once the pandemic ends, about 23 per cent of businesses expect that 10 per cent or more of their workforce will continue working remotely. What does that mean for our home life? Many of us have lost our dining rooms, some have renovated rooms to become office space, and several people continue to find comfortable ways to sit on a couch with a laptop where it was originally meant to be… on our lap. To that end, many now have regular appointments with chiropractors and physiotherapists to heal our arms, shoulders and backs.
There are pros and cons to having a home office and depending on your unique situation, there are innovative ways to make it work. Here are a few things to consider when creating your home office.
1. Set up a unique office space. It doesn’t have to be fancy or pretty, but it should be a consistent space where you can leave your work behind at the end of the day.
2. Invest in yourself. Get a comfortable chair or arrange a standing desk by using a box under your laptop. There are creative ways to make your space as ergonomic and functional as possible.
3. Stay in communication with others. While we can’t have that face-to-face meeting with colleagues or chat by the water cooler, it’s important to stay in contact with others. Continue to participate in team meetings and even schedule regular ‘coffee chats’ with colleagues.
4. Appreciate the flexibility. Be strategic when scheduling meetings and calls. Studies have shown a clear increase in productivity while working from home. Take advantage of a break to fold clothes or prep dinner. In the end, this will allow for more ‘you’ or ‘family’ time.
5. Build a transition to and from work. Just because you don’t have an actual commute, take some time to create your own routine to ease into work and then do the reverse to ‘come home’.
Make the commitment to separate your home from your home office. The steps to distinguishing between the two are unique for each of us, as we all have different jobs, home lives, priorities and roles. There’s no one-size-fits-all, and we need not to strive for perfection.
Achieving a workable, comfortable and productive home office that doesn’t intrude on your home is achievable, though it can be challenging. It takes a commitment to careful thought and planning but should be a priority to help maintain good, positive mental health as we continue to enjoy our work at home and our home at work.
Now that a significant portion of employees are working from home full-time with no end date, there’s a fine line in trying to distinguish our home from our home office.”
Please stop asking if I’m “Burned out”
Finding new ways to support employees
ROBYN JACKMAN
MSW RSW INTENTIONAL OUTCOMES COUNSELLING
Organizations and employers who are concerned about their employees, need to stop asking “Are you burned out?” Not because they don’t care about their employees, or because they need to take care of the bottom lines. It’s because the definition, of what burnout really is, varies from one person to the next.
Most organizations and employers will focus on one or two indicators to determine what they see as burnout. That may not be a clear representation of what real burnout is. Employees can be effective and still be exhausted and overextended. However, the intensification of workloads and increasing emotional difficulty can lead employees to feel ineffective in their position. This in turn can lead to burnout.
It should come as no surprise to hear that burnout is real. With financial stress, job insecurity in addition to a global pandemic these factors will change how burnout presents itself, and what you can do to avoid it.
Knowing what signs to look for can help. Here are some indicators or signs of burnout: mental exhaustion, cynicism, inefficiency, overextended, emotionally drained, lacking energy, unmotivated, and being unable to meet daily demands. But burnout is wily and presents in physical symptoms like headaches, loss of appetite, back aches or fatigue.
Burnout can have a domino effect in a workplace especially if it causes one employee to leave the organization. This may place greater responsibility on others perhaps adding to burnout in other employees, disrupting deadlines etc. So how can you as an organization or employer help?
Well, first you are not 100 per cent responsible to react to employee burnout situations. Burnout is different for everyone, and it is hard to predict. Being proactive about employee mental health and safety can help both your employees and the Organization to avoid burnout.
We are in a global pandemic and organizations have adjusted to having their employees working from home. Working from home itself can be an indicator for burnout for those employees who have never worked from home before. Don’t worry. It is not all bad news. There are protective factors any organization can utilize to help prevent employee burnout.
Some tips could include: • Offering validation. Employees are often more productive when they feel appreciated by their organizations. Offering an employee a “great job” or other form of feedback goes a long way. • While employees are working from home it is important to build in “water cooler moments”. This might be more important than expected¬––encouraging socialization moments between co-workers. This could be done by staying connected through regular check-ins, peer consultation or mentorship. • Encouraging healthy coping strategies such as eating well, drinking water, sleeping regularly, exercise, maintaining hygiene and being connected to meaning and purpose. • Knowing when to suggest professional help.
One last tip worth mentioning is that burnout can often feel insurmountable and can be accompanied by overwhelming feelings of guilt and shame. Burnout is not permanent even if it sometimes can feel that way. Organizations that understand symptoms, also understand that it is not a weakness in character. Those that implement proactive strategies have a more sustainable, happier and healthier organization.
Burnout can impact anyone. If you have any questions about building strategies, please reach out at intentionaloutcomes. com and book an appointment.
