RFPs are pouring in with pointed questions about Environmental, Social, and Governance (ESG) practices. Your investor has just sent you a demanding list of ESG requirements. Dealing with ESG has become a significant drain on your time, and the looming concern of losing business is becoming a real worry.
However, you cannot seem to initiate an effective ESG program. It feels like you’re on a treadmill, and it’s dawning on you that nobody else seems to consider this a priority. This sentiment resonates with a lot of general counsels who are finding themselves stuck in a similar loop. The crux of the issue lies in the failure to generate executive buy-in for ESG.
ESG is inherently cross-functional, and it’s clear that you cannot affect meaningful change on your own. Leaders across the company must commit resources and drive behavioral change.
However, achieving this cross-functional engagement will only occur with the full support of the executive team. It is crucial to grasp each team member’s perspective and devise a plan that addresses these. Here’s how you can make it happen:
Uncover The Objections And Fears
Before presenting an ESG plan to the executive team, identifying supporters and detractors and understanding their fears and objections is crucial. Building a strong business case that specifically addresses these concerns is paramount. Whether it’s addressing cost concerns, public perception, business value, or the impact on imminent business events, a tailored approach is necessary.
Identify Aspirations
Recognize the potential benefits for each executive’s area of responsibility and prepare to leverage their support. From sales to marketing, human resources to legal and compliance, and investor relations – each function has distinct advantages from an effective ESG program. Quantify these benefits and equip your supporters to advocate on your behalf.
Educate Your Executive Team On ESG
Provide necessary education on ESG to ensure that every executive has a fundamental understanding of the topic. Miscommunication often arises due to confusing terminology, and understanding the broader implications of ESG trends is vital for fruitful discussion.
Speak Their Language
Use the insights gained to articulate a strong business case that highlights the problems ESG seeks to address, the resultant benefits, the timeliness of action, required resources, and the next steps. The end goal is to secure a clear decision to proceed from the CEO and rally as much executive support as possible.
The Business Press 