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ESG is a very important tool for organizations. After all, we are talking about management focused on responsibility towards society as a whole.
Arguably, no business is an independent body. So much so that they need to manage resources and actions to minimize the impact caused by their activities in the society and community in which they are inserted.
Another issue is that today’s consumers care about the origin of the products or services they acquire.
It is not uncommon to see news about boycotts of companies that use inputs of dubious origin, for example.
In fact, there is currently a lot more attention being paid to companies’ positioning regarding environmental, social, and governance sustainability.
In this sense, ESG is an acronym increasingly present in the corporate environment.
And, it also became synonymous with competitiveness, focusing on expanding the sustainable and ethical impacts of organizations’ strategies.
What is ESG?
ESG is an acronym that stands for Environmental, Social, and Governance.
It’s a practice that aims to integrate social, environmental, and governance efforts, in other words, business sustainability.
As companies are not isolated organisms, they need to walk and look for sustainable, responsible, and social welfare-oriented alternatives for their products or provided services.
ESG emerged in 2004, and is defined as practices that positively impact the environment, society, and the corporate world.
In this sense, ESG for companies has 3 pillars, each with specific practices:
Environmental: As you might imagine, this pillar is directly related to practices that respect the environment. ESG sustainability involves responsibility for reducing or mitigating environmental impact. In this way, it includes adopting programs focused on correct waste disposal, recycling, and elimination, as well as circular economy, among others.
Social: This pillar refers to practices aimed at developing the community economically. Thus, it involves minorities’ representation, equal rights, inclusion policies, training programs, and job security, among others.
Governance: Corporate Governance is the third ESG pillar and it seeks to ensure that companies act ethically, and transparently, with compliance and equity. In this way, it aims to improve the entire corporate environment, ensuring the interests of investors and stakeholders are met but in accordance with rules and laws enforced by regulatory bodies.
Why should my company invest in ESG?
Arguably one of the main reasons for joining ESG is the responsibility for your company’s practices.
Currently, consumers, suppliers, and investors are more aware of social issues. They preffer to consume or partner with businesses that care about their community’s well-being.
However, it’s not just about how the company is seen. Adopting an operation with ESG criteria boosts responsible investors’ adhesion.
Being responsible, sustainable, and social positioning can increase profitability. After all, consumers accept paying a higher amount if this added value is present.
In addition, this practice is capable of improving customers’ and consumers’ experiences.
And, as there are actions to improve and value professionals, turnover is reduced, making it easier to adopt solutions to increase performance and performance.
In this sense, ESG helps an organization increase its productivity, agility, and relevance.
In addition, commitment to the company and the business increases, considering that the organizational climate is appropriate and respectful.
By adopting solutions that improve the way of working, there are greater chances of observing and taking advantage of business opportunities.
ESG is currently essential for a company to grow and remain in the market in the long term.
ESG and process automatization
As mentioned, ESG has practices to reduce waste and improve professionals’ quality of life.
In this sense, process automatization is directly related to the ESG pillars. After all, it automatizes bureaucratic and unproductive activities.
If employees waste a lot of time answering emails or doing repetitive activities like taking notes, it is possible that their satisfaction and motivation are low.
Process automatization facilitates execution, eliminating irrelevant tasks, and increasing productivity and agility.
On an enterprise scale, automatization streamlines end-to-end processes. It actually blends sustainability goals directly into the flow of business activities.
In addition, it allows professionals to focus on more strategic activities, creating competitive advantages and, consequently, achieving greater customer satisfaction.
And since the flow of activities needs to be mapped to implement processes automatization, better ways of execution become easier to find.
In the same way, business process automatization is directly related to a paperless culture.
In other words, when document digitalization is included and the use of digital is encouraged, the use of paper and its environmental impact is reduced.
Process automatization allows for greater information tracking, improved management, and more assertive decisions through the use of accurate reports.
It also makes it possible to track process performance, identify bottlenecks, and monitor everything based on real data and meaningful metrics.
Processes automatization allows the company to adhere to a Risk Management program, and fulfill requirements imposed by the ESG, such as:
- transparent management;
- recognition of all members of the organization;
- environmental policies;
- implementation of reverse logistics;
- responsible use of natural resources;
- identification and commitment to the company’s objectives;
- relationship management;
- transparent communication;
- clear, real-time accountability;
- presentation of financial reports;
- between others.
Automatization, ESG, and the Future
The future is undoubtedly green. In fact, managers of the future will have to make decisions based on reducing environmental impacts. Based on data, values, and responsible ethics.
In this sense, companies need to be prepared to have an increasingly sustainable management.
As time goes by, this issue will become even more evident and important.
Solutions that automatize processes allow companies to achieve their sustainability goals, improving, mainly, those areas that have more bottlenecks or that present greater errors and waste.
The use of software to help execute routines within companies will be essential for those who want to retain clients and professionals.
At the same time, it allows tracing and achieving competitive differentials.
The use of technology allows companies that adopt the ESG practice to be ahead of their competitors. Receiving greater emphasis in relation to agility and operational efficiency.
Obviously, the use of technology needs to be facilitated. Therefore, low-code tools, which can be easily customized by users, are the most suitable.
In addition, there needs to be integration between the other systems used internally. This allows data to be collected and analyzed globally.
Implementing ESG companies can still be considered an option. However, companies that already adopt this practice are ahead in the market.
Environmental issues, proper use of resources, and social well-being are themes that will be increasingly in focus.
Therefore, talk to our representatives and find out how the Fusion Platform can improve your management and help your business to walk the path of sustainability and social responsibility.
Did you have any doubts about it? Write in the comments, and we’ll help you!
Neomind is your business partner toward a greener, sustainable, and automated future.
