2 steps to start your ESG initiative

Let’s Talk – Kurt Groeninger

You can't just flip the switch on ESG metrics, but I think there are two important steps before you incorporate ESG to really start anything.

Figure out what’s important to the company in terms of values and strategy.

First, you have to figure out what's important to the company in terms of values and strategy. That'll guide you on what metrics you should be considering.

Set up the right infrastructure to measure and monitor progress.

Second, you have to set up the right infrastructure to measure and monitor progress from management and the board. You know, some companies may already have this in place, but many don't. So, that's a good place to start and begin thinking about about incentivizing individuals to do so.

With many ESG goals and accomplishments, they can take time. So, very few of these ESG transitions can occur in just one year. So, right now, you should be questioning the process.

Do we have the right structures in place to measure and monitor? Do we know the right levers to pull to make adjustments or improvements? Are these ESG outcomes aligned with our strategy? And, perhaps, are we incentivizing individuals to achieve these outcomes?