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What is the difference between ESG and purpose?
Tuesday 15th February 2022
Purpose and ESG (environmental, social, and governance) issues represent new commitments and challenges for companies and organisations.
Listen here for more information on McKinsey's Inside the Strategy Room Podcast: https://podcasts.apple.com/in/podcast/106-the-role-of-esg-and-purpose/id1422814215?i
This means Boards and executive teams now have the significant challenge of how to align these commitments while also embedding them in organisations' operational systems.
What are the top 3 things that matter with purpose and ESG?
McKinsey's @RobinNuttall says your purpose is to find the answers to the following questions:
• Why your organisation exists?
• Why do employees come to work?
• What impact is it having on society and on the environment?
How an organisation responds to these three questions defines its purpose, and fundamentally, it can only deliver on its purpose, by implementing ESG.
Purpose also must link to your business strategy.
The easy bit to address is:
1. Which markets and product categories do you participate in and which ones do you stay out of?
2. What is your stated commitment to the people and the society as a whole?
3. Writing a purpose statement on your website
The hard bit is:
1. How has your purpose been deeply embedded into your core operating model?
2. Operationalising ESG at the very core of your business so you can monitor all impacts, report on all disclosures and outcomes, whilst delivering powerful real time governance.
3. Capturing lessons learnt to unify people, data, processes, and workflows across the entire enterprise.
See how Purpose driven ESG can be delivered in your organisation, ESG as your operational DNA, go to this link; www.myconsole.co.uk