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Why are corporates around the world getting their employees ESG certified?

Are quality products and profits enough for businesses to be successful today? The answer is certainly no. Today large business houses equate success with sustainability. The CEOs of big companies believe that embedding sustainability in every form into their principles and values can guarantee success now and in the future. And sustainability is synonymously called ESG. In order to pump up ESG integration into the company, companies today are in constant search for ESG experts. However, a dearth of ESG experts in the market has compelled companies to think of novel ways to have ESG-minded people on their boards. This is where many companies are planning to get their employees ESG certified. It gives them a double advantage. Firstly, they need not hire more employee fleets because many companies have their own limitations with regard to capacity, size of workforce and salaries. And secondly, companies feel that why not make their own workforce more knowledgeable and efficient through ESG certification if ESG is the way forward and if it is going to be a key driver behind the organisation’s success.

A lot of ESG certification programs are present in the market and there is no one-size-fits-all approach in the certification world. One needs to choose a certification that is relevant and aligned with its operations. Certificates are provided by a third party after the concerned individual completes the ESG curriculum and passes the examination with the required score. ESG is an ocean in itself. Only if we were to talk about one ESG branch like ESG reporting, we can imagine the complexity. There exist so many sustainability frameworks according to each country’s suitability such as GRI, TCFD, SASB, BRSR, CSRD etc. Each of these reporting initiatives has its own characteristics and is different in its own way. An ESG expert is expected to be proficient in various branches of ESG. The third party provides certification after thoroughly verifying his knowledge and understanding of the subject. It acts as proof of credibility wherein people can be assured that an ESG-certified individual has quite a hold in the ESG domain and his knowledge can be relied upon in decision-making.

Businesses now crave purpose. They now realise and understand their duty towards the planet and the people. Demand from stakeholders and governments has opened eyes promoting them to be responsible corporate citizens. As business organisations have largely been responsible for huge quantities of co2 emissions into the atmosphere, the liability to reverse this situation also largely falls upon them. They now want to become greener, more socially responsible and have sound governance measures. They are only in search of a pathway to make their aims and ambitions fall smoothly into place. And one such pathway is to invest in employees by getting them ESG certified. It is clearly not an expenditure but an investment in assets upgrading its value addition.

Employees are a mirror image of how and what the company is. Getting employees ESG certified is reflective of the board’s commitment to heightening employee development. Corporate Institutions bear a social responsibility to contribute to the growth and development of their employees and pushing them to be ESG experts can said to be carrying out the responsibility in the most thoughtful manner.

ESG certified employees can be a great value addition to the business. They can impressively provide the company with a large number of benefits such as

- Define the present status of a company’s sustainability by showing how the company is performing across the Environmental (E), Social (S) and Governance (G) sectors

- Can possess a better understanding of stakeholder sentiments and requirements

- Can draw a roadmap outlining a company’s ESG goals where it aims to reach

- Can significantly help to reduce the company’s carbon footprint

- Can help in the creation of a positive culture where the personnel is dedicated to raising the sustainability bar for the company.

- Can propose impactful business changes

- Can help to cut down costs for businesses because shifting to sustainability is cost-effective and can help companies save huge bucks.

- Can lift up the sale of its products and services because the market demands it.

- Can propose lucrative strategies to tackle and rise up above the competition.

- Can perform ESG reporting compliances for the company

- Can help in business development in the right direction

- Can help transform sustainable investing into impact investing.

- Can help the company outshine others

- If in the investment world, can help to instil ESG dimensions into responsible investment strategies

Getting your workforce ESG certified will help you gain the confidence of the investors who impose a lot of faith in you. Keeping investors’ faith intact is key to winning their loyalty in the long term. The time is not long where all companies will mandatorily be commanded to ingrain ESG principles into their operating structure. So why not prepare and boost up the process from now and stay ahead in the game?

As rightly said by Larry Fink, Chairman & CEO, Blackrock, “Every company and every industry will be transformed by the transition to a net zero world. The question is, will you lead, or will you be led?”

Through our highly acclaimed Directors’ Institute - World Council of Directors, you can augment the board’s understanding of the need to get its employees ESG certified. You can now conveniently get your employees ESG certified through our recognized Directors’ Institutes’ - CPD Accredited ESG Expert Certification.

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