The Last Word: THE TECHNOLOGY SECTOR AND ESG
Tech companies need to make ESG part of their Day 1 strategy. The good news is innovative tech can help
Evan Kirstel | Tech Influencer, Industry Insider, Content Creator and Social Media Business Advisor and Jim Harris | #1 International Bestselling Author, Global Keynote Speaker focused on disruptive innovations
Around the world boardrooms are wrestling with discussions focused on environmental impacts, social responsibility and governance structures. Strategies developed with consultants and big advisory firms are diving deep to learn about #cleantech #biotech #greentech and more.
It’s clear ESG issues are quickly becoming one of the most important conversations happening in the corporate world, but many boards aren’t sure why or how to incorporate these strategies into their business plans.
The good news is, there are so many forward-thinking organizations that are moving the needle on all things ESG, making the conversation one that boardrooms can no longer afford to ignore.
As we see in this issue of Disruption — from startups like Terra on food security needs due to climate change and The S Factor’s efforts to measure social performance through data and analytics, and from iSAW’s research showing how gender equity drives progress on all facets of ESG, to the Chintan Project’s focus in breaking down societal barriers in search of making positive impacts on the world — it’s clear that organizations need to prepare, and, quite frankly, do a better job of executing ESG plans outside of the boardroom.
To move beyond just words and strategies on paper, organizations and their boards need to think about how to leverage new tools that can facilitate meaningful action and progress. Quite simply: technology innovation has the chance to further ESG in ways never thought of before.
Across the globe, the need for tracking software and reporting systems that are ESG focused continues to rise. Many are turning to Blockchain as it can create an encrypted, transparent company record, help track ESG business transactions and relationships with the exchange of records, creating blocks for energy certificates, carbon emissions entries, energy consumption and waste reduction.
A great example of this is the Green Software Foundation, which includes Microsoft, which took on a sustainable coding movement that is currently establishing green software standards and best practices. This will help ensure that the software developed in future includes green practices which are subject to energy monitoring, peer benchmarking and key performance indicators that would help review the actionable commitments.
Organizations that fail to recognize the importance of ESG in their business plans and structure are risking their long term — or even short term — success. A recent KPMG report found that more than half — 57 per cent — of tech company CEOs agreed that sustainable success depends on more than a focus on financial growth, but they struggled with how to connect their growth to societal purpose.
For organizations to truly succeed on ESG strategy, it needs to be incorporated from conception, and not wedged into strategy and business plans once a company has already grown and scaled. Much like diversity, equity and inclusion policies, the most successful ESG approaches are the ones that are baked into the organizational structure from Day 1.