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Environmental, social and governance (ESG) criteria are more vital than ever for people and firms committed to sustainable and ethical practices. Generally, ESG criteria in assessing a company’s performance go beyond financial metrics, focusing as a substitute on environmental management, social responsibility and corporate governance.
Therefore, a fascinating balance should be found between business success (in the traditional sense) and sustainability. Today, we delve deeper into this balance by examining the intriguing intersection of those principles with the remote work policies under which so many firms now operate on a day by day basis.
Curious about the significance of this crossover? Well, in keeping with 2021 data Gartner study85% of investors included ESG aspects in their investments, emphasizing the growing importance of meeting these criteria. When we mix this inside modern firms and startups, especially those looking for investment and going through the fundraising process, you’ll begin to know the critical importance of ESG awareness.
Being aware includes participating in strategies that may have a positive impact on ESG, resembling remote work setups. So let’s take a closer look at how these strategies enable firms to implement these ideologies more efficiently and effectively.
The impact of remote work
Starting with the “E” in ESG, remote work inherently reduces a company’s carbon footprint. With fewer or in some cases like ours Bubbles, zero employees commuting to work, there is a huge drop in greenhouse gas emissions (only from travel). In this light, we must always look at some statistics from Global workplace analytics.
They argue that if those that could work remotely did so only half the time, reducing emissions can be the equivalent of putting New York State’s entire workforce out of work. The scale of this workforce is largely incomprehensible, so I feel comfortable making a comparison here to the incomprehensible environmental advantages of firms implementing remote or hybrid work policies.
However, the advantages are not limited to travel alone. Environmentally, remote working also reduces the need for large office spaces, which implies less energy is used for heating, cooling and lighting.
I would like to notice that the advantages are not without some challenges. The greater reliance on digital infrastructure that usually takes place to make remote work successful signifies that those involved will have greater electricity consumption and greater electronic waste. However, this does not mean that this challenge can’t be met. In most cases, firms are capable of meet these challenges by adopting green IT practices, resembling using energy-efficient servers and encouraging the recycling of electronic devices.
Social advantages of remote work
On the social front, remote work has a positive impact on job satisfaction and work-life balance, each of which are key elements of the “S” in ESG. Employees gain more flexibility in these work arrangements, reducing stress and improving mental health. Not that I’m going to fill you with facts, but in keeping with… Buffer in 2020, 98% of remote employees would really like to proceed working remotely to some extent for the remainder of their profession. So there you have it – implementing these strategies in your organization won’t only make you more ESG-friendly, but it would profit the lives of your employees.
Remote work also promotes inclusivity and breaks down boundaries (literally) that were common in brick-and-mortar workplaces. By removing geographic barriers, firms can gain access to a more diverse talent pool, which, after all, advantages company performance and growth. This includes ensuring inclusion for individuals who may have disabilities or caring responsibilities that make traditional office work difficult. Inclusion resulting from commitment to remote work strengthens the social fabric of your organization and lets you have higher specialists on your team.
Management and remote work
Let’s move on to the last letter. In the context of ESG, governance involves implementing and ensuring robust policies, accountability and transparency inside a company or organization. Sometimes a remote work setup can make it difficult to speak effectively, so I would like to emphasise the importance of using remote work appropriately.
This is because a remote work policy requires clear communication (asynchronous or synchronous) and documentation that, when done well, inherently improves management practices. Staying in touch with team members who are geographically separated could be done in many ways.
This was the most vital thing for me when I began the company Bubbles. I desired to facilitate effective remote work by recording key discussions and decisions in real time using AI notes. Next, I wanted team members to find a way to react on the fly and quickly adapt to quick recordings or comments. From my perspective, this level of documentation and communication matches well with ESG goals, promoting ethical decision-making and reducing the risk of miscommunication and oversight.
Limitations and challenges
Despite the quite a few advantages, remote work is not without limitations. Of course, this culture could also be dominated by the potential for worker isolation and difficulties in building a coherent company culture. See this as a challenge to beat and invest (financially and emotionally) in team-building activities and ways to create an inclusive digital workplace where people feel a sense of community.
The digital divide will also be a challenge. Not all employees have access to high-speed Internet or a supportive work environment at home. Understand this and work to deal with these discrepancies. That’s why recruiting and onboarding are so vital for you to get the most out of your efforts.
Application
Remote working policies are a powerful catalyst for a positive impact on ESG and needs to be viewed in that light, not as a trend. I hope that by sharing this I have opened your eyes to the importance of navigating changing work environments and leveraging them for ESG goals and company advantages.