Small businesses can monitor ESG impacts too!

Environmental, Social and Governance (ESG) is an umbrella term used to refer to the set of standards, practices and policies that a company has in place to ensure they are taking responsibility for the environment, social issues and governance. ESG has become increasingly important as businesses become more focused on sustainability, ethical practices and the overall health of their operations.
​
Small businesses, in particular, have an important role to play in ensuring that they contribute positively to society and the environment. However, monitoring ESG impacts can be challenging for small businesses, especially those with limited resources.  By monitoring their ESG impacts and tracking relevant metrics, small businesses can identify areas for improvement and take action to become more sustainable and responsible. By doing so, they can not only benefit the environment and society but also enhance their reputation and build a loyal customer base.

Small businesses can be involved in ESG in a number of ways. First, they can commit to sustainable practices and ethical operations. This can include adopting renewable energy sources, minimizing waste production and disposal, and implementing fair labor practices. Second, they can ensure they are compliant with legal regulations and labor standards. Third, they can invest in social initiatives, such as initiatives to support local communities, education and health. Finally, they can adopt corporate governance practices that are transparent and accountable.

Small businesses can monitor their ESG performance by regularly measuring their progress against their goals. This includes tracking their environmental, social and governance progress against targets, such as reducing their carbon footprint or increasing their charitable giving. Additionally, businesses can use third-party audits and assessments to measure their ESG performance and identify areas for improvement.

​
Small Business Environmental Impacts (E)
Small businesses are an important part of any local economy, and with the increasing global focus on sustainability, it is important for these businesses to become more sustainable. Fortunately, there are a number of ways that small businesses can make changes to reduce their environmental impact and become more sustainable.

• One of the easiest ways to increase sustainability is to reduce energy use. This can include simple changes such as switching off lights and appliances when not in use, or investing in energy-efficient appliances and equipment. Businesses can also reduce their impact further by using solar energy, or consider switching to green energy suppliers who offer electricity generated from renewable sources.
• Businesses can also reduce their impact on the environment by reducing their waste. This can include introducing a waste management system, such as a recycling program, to reduce the amount of material that ends up in landfills. Additionally, businesses can look into ways to reduce their paper usage, such as using digital documents and online storage solutions.
• Small businesses can consider investing in green initiatives such as planting trees and green spaces. These initiatives can help to reduce carbon emissions, improve air quality, and help to create a healthier environment for businesses, employees, and customers.

Small Business Social Impacts (S)
Employers have a responsibility to ensure that the labor conditions they provide to their employees are safe, fair, and equitable. Improving labor conditions can have a positive impact on employee morale, productivity, and overall job satisfaction.

• Employers should make sure that they are abiding by all applicable labor laws and regulations. This includes ensuring that all employees are being paid the minimum wage, overtime pay, and other benefits as required. Employers should also ensure that employees are not being subjected to any kind of workplace harassment or discrimination.
• Employers should strive to create a positive workplace environment for their employees. This includes providing adequate space and resources for employees to do their jobs, offering competitive wages and benefits, and showing interest in the well-being of their employees. Employers should also promote a culture of open communication and provide employees with clear expectations and feedback.
• Employers should make sure that their employees have access to safe and healthy working conditions. This includes providing adequate safety training and ensuring that employees have access to proper safety equipment and supplies. Additionally, employers should ensure that employees are not exposed to any kind of hazardous materials or conditions that could potentially cause injury or illness.
• Employers should strive to provide meaningful opportunities for their employees to grow and develop professionally. This includes offering training and development programs, promoting internal career advancement opportunities, and providing mentorship for employees.​
• For social impacts, small businesses can track metrics such as employee turnover, employee satisfaction, and customer satisfaction. This can help them identify any issues that may be affecting their workforce or customers and take action to address them.

By taking these steps, employers can create a working environment that is safe, fair, and equitable for all employees. This will help to ensure that employees are able to perform their jobs in an optimal manner and that the employer is in compliance with all applicable labor laws and regulations.


Small Business Governance Impacts (G)
Small businesses should pay attention to their corporate governance practices. This includes ensuring that there are clear lines of communication between management and employees, that all employees have a say in decision-making, and that any corporate policies are in line with ESG considerations.   A governance policy can help ensure that the company is being managed in an ethical and responsible manner.  In terms of governance, small businesses can track metrics such as regulatory compliance and ethical conduct. This can help them ensure that they are operating in a responsible and transparent manner and that they are complying with all relevant regulations and laws.

• The first step in monitoring and setting goals related to governance is to establish a baseline of where the company currently stands. This can involve conducting an audit of the company's governance policies and procedures, as well as assessing the company's overall corporate culture. This baseline will help the company identify areas where improvements can be made and set realistic goals for the future.
• One of the most effective ways to monitor and set goals related to governance is to establish a governance committee. This committee should be made up of individuals who are independent of the company's management and have expertise in governance matters. The committee should be responsible for overseeing the company's governance policies and procedures, as well as monitoring the company's compliance with relevant laws and regulations.
• Another important step is to establish key performance indicators (KPIs) related to governance. These could include metrics such as the number of whistleblower reports received, the percentage of employees who complete ethics training, or the number of diversity and inclusion initiatives implemented. By tracking these KPIs over time, companies can assess their progress in improving their governance practices.