For companies serious about their environmental, social and governance (ESG) credentials, Sysmax can help track progress against goals.
For years, companies have been encouraged to consider seriously the broader impact of their activity. Corporate social responsibility (CSR), corporate citizenship and corporate conscience have been concepts that many businesses have certainly talked about. More recently, investors are focusing on this topic too. The latest trend in investing is ESG, which stands for Environmental, Social, and Governance. Most socially responsible investors now look to measure the sustainability and ethical impact of an investment in a business or company. Increasingly, this means that companies need to get serious about their ESG credentials. It pays to have the systems and structures in place to be able to track progress, and in this blog, we're going to investigate how Sysmax products can help.
Companies behaving better benefits us all
CSR is a concept that really came to the fore as early as the 1950s. Put simply, CSR refers to efforts made by a company to improve society and contribute towards sustainable development. It focuses on evaluating and taking responsibility for impact on issues ranging from human rights to the environment. Corporate social responsibility typically refers to lengths taken by businesses that go beyond what is deemed compulsory by law and ethical standards as stated by regulators and environmental associations. Initiatives may focus on achieving economic, social, and environmental benefits for all stakeholders, be they employees, consumers, investors or other groups.
Set against the background of climate change, there is clearly a need for companies to consider sustainability in everything that they do. Sustainability is often mentioned alongside CSR and is usually associated with the environment. However, it can also apply to other aspects of a business, including procurement, finance, employment and training for example. Certainly, in the UK, measuring social value is often a key element in the bidding process when services are put out to tender by for public- and third-sector bodies.
What's the difference between ESG and CSR?
In some ways, the drive for CSR comes from within a company. It's a type of self-regulatory business plan, and often internal stakeholders set the priorities for an individual company's efforts and practices. But all too often, CSR has become a marketing tool, allowing companies to talk about their activities without measuring impact. On the other hand, ESG is a set of standards or criteria for investors and other stakeholders to evaluate a company’s environmental, social and governance performance.
It might be seen as quite a departure for investors to focus on ESG, as it demonstrates a longer-term commitment to investment. For example, meeting a goal such as reducing carbon emissions can often result in short-term costs that do not lead to immediate economic gain for the company. However, investors are increasingly recognising that these initiatives instead support and prioritise social and environmental progress. They're giving such companies credit for meeting these goals. But of course, they need metrics by which to judge different companies' ESG performance.
ESG that's more than just keeping investors happy
Given ESG is all about external scrutiny, it's increasingly helpful to have tools with which you can set your standards and measure your progress. That's what Sysmax does on a day-to-day basis. Our products certainly help with companies' responsibilities towards their own staff. We can help companies and individuals understand where there may be skills gaps and set personal development plans that can address issues that arise.
But more widely, our tools can help achieve ESG goals too.
- With Benchmax compliance management, a company could monitor progress against the UN's Sustainable Development Goals. The system provides your operations team with insight into the performance of people, processes, and assets against standards across the organisation.
- Various social issues can be covered off using the Sawmax improvement management product, with real-world scenarios for simulations and testing. The product uses gamification techniques, simulated scenarios and multiple-choice questions to show how candidates react to real-world situations as they unfold. By focusing on key areas, it’s possible to improve stakeholder value and business security.
- Casmax can enhance corporate governance by helping to optimise human resources across complex corporations. It can be deployed to make sure that the right information gets through to the right people in the organisation. Managers can look at aggregate skillsets across a region, or global organisation.
Here at Sysmax, we're passionate about personal development, set against the broader backdrop of a sustainable future for us all. That's why we focus on our own ESG goals as a company. Look out for future blogs where we'll be exploring our various links with Leeds University, to show how Sysmax itself takes social responsibility seriously.
#ESG #EnvironmentalManagement #SocialResponsibility #CorporateGovernance #NoPlanetB
Contact one of the team today to find out more about how Sysmax products can help with your company's ESG (environmental, social, and governance) goals.
Post by Peter McAteer
Peter is the founder and CEO of Sysmax, a market-leader in the areas of compliance, performance improvement and competency management. He has more than 35 years’ experience working with global leaders in high-risk industries such and oil and gas extraction. Peter’s focus is on driving performance improvement though analysis of business compliance and staff competency, including risk analysis, high technology engineering and value optimisation. He works with clients to ensure they make the most of the opportunities inherent with the Sysmax suite of products.