The conversation around corporate responsibility has significantly shifted in recent years. Companies are no longer only judged by their profit margins, but also by how they impact the environment, how they treat their employees, and their role in the larger societal framework. One framework that has been gaining traction is the implementation of ESG (Environmental, Social, and Governance) strategies. This paradigm shift requires businesses to integrate sustainable practices, be it ecological conservation or fostering social equity, into their core objectives.
But how do companies effectively set, track, and achieve these high-reaching ESG goals? This is where the concept of integrating an ESG strategy with OKRs comes into play. In this blog, we’ll explore how OKRs can effectively aid businesses in implementing their ESG strategies and why it’s a game-changer in corporate sustainability.
What is ESG?
ESG stands for Environmental, Social, and Governance. It represents a set of standards that businesses and investors use to evaluate corporate behavior and determine the future financial performance of companies. Through ESG, companies are assessed based on their commitment to sustainability, ethical practices, and societal impact.
The three pillars encompass a wide range of factors:
Environmental:
- Carbon Footprint
- Water Use
- Waste Management