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According to a recent study, solid Environmental, Social, and Governance (ESG) practices resulted in better operational performance in 88 percent of companies.
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In the Consumer Top Trend 2021 survey by Gartner, 62 percent of consumers said they had the power to get brands to address social issues by voting with their wallets, whereas 54 percent believed that businesses should take the lead in solving key issues in our culture and society.
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Further, 60 percent of respondents in Gartner’s 2021 CEO and Senior Business Leader Survey perceive d that their company ’s taking a stand on social justice issues was good for the underlying business.
So, there’s obviously reason for investors to look at ESG factors as an indicator of profitability. And it certainly seems valuable for companies to undertake ESG initiatives.
But is investing in ESG a priority simply to enhance the bottom line?
I’d argue that focusing a company’s efforts on ESG not only enhances its positioning, it can fulfill its altruistic and intrinsic impetus. Not only is it part of our responsibility to be good corporate citizens, it can have an impact much greater than corporate positioning—solid corporate ESG practices can help build meaningful lives.
Focusing on Our People
When we talk about building meaningful lives, we can look at companies providing enriching and engaging personal and professional experiences at work. By instituting important , people-centered programs, we can play a direct role in improving the quality of life for employees while remain ing aligned to ESG goals, such as diversity and inclusion, employee engagement, or corporate social responsibility.
Whether it’s instituting critical health, safety, and environmental practices, offering health or wellbeing resources, or providing learning and professional development opportunities, there’s no shortage of ways to help team members feel valued and respected and to provide an environment where every employee can reach their full potential.
Many companies, like Bombardier, offer telehealth and employee assistance programs. Many are now also offering flexible work environments, which include a hybrid of office and remote working, which relieves pressure on employees and helps ensure a better work/life balance. These types of initiatives remove barriers to help people lead their best lives and bring their best selves to work, enriching their experience.
Focusing a company’s efforts on ESG not only enhances its positioning, it can fulfill its altruistic and intrinsic impetus.
Strengthening the Talent Pool
And since we’re talking about workforce, instituting diversity and inclusion practices is a great way to strengthen the talent pool while also helping to make an impact.
By ensuring equal access to career opportunities, advancement, and professional development, companies can benefit from diverse perspectives, new ideas, and an engaged workforce, while employees benefit from an inclusive and accessible environment where differences are valued, respected, and embraced.
The same is true in supporting the next generation. Our world-class internship program is designed to identify, cultivate, and attract tomorrow’s talent while stimulating innovation and growth in our industry. By partnering with post-secondary institutions or creating other education-based or mentoring programs, companies provide young professionals from various socioeconomic backgrounds with practical job experiences that enhance their skill sets, increase their insights, and broaden their perspectives and professional networks.
Giving Back in More Ways Than One
We also can’t ignore the important impact that companies make when they institute community service programs. Bombardier has a structured volunteer program, B-Effect, where teams of employees give their time every month to community organizations. This is a valuable and significant contribution, not only to our employees who feel as if they’re making a difference, but to the organizations that benefit from their time and resources.
But corporate ESG initiatives reach beyond employees. At our 2021 Investor Day, Bombardier reaffirmed its commitment to pursue ambitious ESG goals, which include achieving a 25 percent reduction in greenhouse gas emissions by 2025, relative to 2019. Bombardier has long been a pioneer in sustainability, and we fully accept our obligation to be good stewards of the skies in which we have the privilege to operate. You can clearly see this commitment, as we made history by having the industry flagship, our Global 7500 aircraft, the first-ever business jet to complete an Environmental Product Declaration. We’ve been at the forefront in the push for greater adoption of sustainable aviation jet fuel, which we’ve been using in our demo fleet for years. The actions we’re taking today will help ensure a greener, more sustainable future for decades to come.
Such is true for all corporate ESG practices. It may be a strategic decision. It may be great for the bottom line. But the real bottom line is that solid corporate ESG practices can help build meaningful lives in ways that we can only imagine.