ESG criteria: What your business is already doing right (probably)
Less than 20%* of Quebec businesses have said they're committed to sustainable development. The problem is that they don't have access to the same resources and expertise as large companies. But the good news is that some of these businesses—including yours—may be doing more than they realize for environmental, social and governance (ESG) issues. And that means they're playing an active role in our transition to sustainable development. We want to help you determine what your business is doing well and what it could do better, one step at a time.
Evaluate your company's ESG performance
Sustainable development isn't just about big gestures; it can be small things too, like sending invoices and statements online, buying from local suppliers, and creating an equitable, diversified and inclusive work environment.
Consider every aspect of your business from an ESG perspective. Take the time to get a better understand your strengths and weaknesses, opportunities and threats.
Here are some points to consider in your assessment.
Environmental
Prevent or repurpose any waste
Improve energy consumption
Reduce transportation costs and improve fuel efficiency
Measure greenhouse gas (GHG) emissions
Limit paper, cardboard and plastic use
Social
Promote diversity and inclusion
Protect your employees' health and safety
Give back to the community
Protect your customers' and employees' privacy
Measure your team's engagement
Governance
Prepare your business transfer
Prioritize doing business with local suppliers
Provide fair compensation to your employees
Avoid conflicts of interest that could influence the decisions you make
Research ESG best practices in your sector
Just as you would test the market before launching a new product, you should research how business practices are changing to line up with ESG criteria. Can you draw inspiration from your competitors? What major trends are you seeing in your sector?
Let's say you found out that one of your biggest clients was looking at their supply chain in an effort to reduce their carbon footprint. Would your business make the cut? How could you adapt to strengthen your relationship?
Draw up an action plan
Write down your concerns, findings and observations. Get your team to help you by having them share their ideas. Don't think of ESG criteria as an extra task; but rather as a way to push your business strategy and better prioritize your goals.
Your action plan doesn't need to be perfect. And it may take a few months—or even years—to get everything done. The important thing is to get started on this path that can yield tremendous value.
Get support from your financial institution
Delve deeper by talking to an objective partner who knows your sector inside out, like your Desjardins Business advisor.
Desjardins has supported a number of small and medium-size businesses like yours and can advise you on which ESG issues to prioritize in order to generate the most positive impacts. Your advisor can put you in touch with trusted professionals if you need someone with a more specialized expertise, like in energy efficiency or cybersecurity.
Do you know that the federal and provincial governments, and some municipalities and large public corporations offer grants to support sustainable development in Canada? Just call us to learn more and to get advice on how to apply.
The most important thing is to get started. One small action at a time. Capitalize on what you do best and improve as best you can. Shifting focus to sustainable development will make your business more meaningful, resilient and appealing to customers and investors, which in turn will help your business grow.