Want to give your business an edge in the corporate world and make a positive impact on the world? Then it might be the right time to explore doing a sustainable leadership course.

ESG (Environmental, Social, and Governance) is used to assess different organisations’ performance and business practices. It’s based on different sustainability and ethical issues.

Every organisation needs to work towards prioritising sustainability, social responsibility, and good governance. This is not just about following trends and making sure they look good to investors who use ESG investing; it’s also about establishing a healthy culture of accountability and perseverance in organisations to promote a better tomorrow.

While the goal is noble, what are the benefits that come along with pursuing ESG training? In this article, we’ll link some of the most beneficial aspects that come along with ESG training and certification.

What does ESG leadership training focus on?

An ESG course focuses on three core principles: environmental, social and governance. These three principles play a crucial role in assisting businesses in the implementation of more sustainable and ethical practices in local and global environments.

Environmental

The environmental factors addressed in this type of course encourage companies to consider their overall effect on the environment. It will focus on the potential risks and opportunities related to environmental issues, and ESG criteria will include the following:

• Air and water pollution
• Biodiversity loss
• Carbon footprint
• Deforestation
• Energy consumption
• Energy efficiency
• Natural resource depletion
• Waste management

Social

The social factors covered in an ESG course will address how companies treat people of all different groups (employees, customers, suppliers, and community members) and their social impact. Some of the focuses in this part of the course will address:

• Customer satisfaction levels
• Community relations
• Diversity, equity and inclusion
• Fair pay
• Fair treatment of customers and suppliers
• Human rights
• Labour standards

Governance

The governance factors will focus on how a company polices itself and how it maintains compliance with industry standards and regulations, best practices and corporate policies. Issues that will generally be addressed in a sustainable leadership course:

• Board composition
• Business Integrity
• Company leadership and management
• Ethical business practices
• Executive compensation policies
• Financial transparency
• Rules regarding bribery, corruption, conflicts of interest, political donations and lobbying
• Whistleblower programs

1.Improves compliance with evolving legal regulations and industry standards

The corporate world is ever-evolving, and thankfully, it has woken up to the dire state of the actual world in which we live. Regulations and industry standards and constantly changing, and it’s essential to stay up-to-date. When you choose to go for ESG training, this will ensure that you and your company will not only be aware of the latest requirements but also be compliant, and this fosters a culture of legal responsibility in the workplace.

2.Encourages and builds a positive work environment

Another thing that ESG courses do for your business is help to create a positive working environment for everyone. Many who attend a sustainable leadership course are instilled with a greater sense of responsibility and a deeper sense of purpose. A happier working environment with purpose-driven employees will also help to boost productivity.

3.Help your business gain a competitive edge

Investors are no longer looking at the financial results of businesses, but they have adopted a more holistic approach when looking for potential. In capital markets, many investors practice something called ESG investing, which utilises ESG criteria to evaluate potential investments. While it’s not the only factor, ESG compliance is crucial for attracting future investors, partners, clients and consumers and will definitely give your business a competitive edge.

4.Improves risk mitigation

Part of a business’s success depends on its ability to identify and mitigate risks from all different directions. By pursuing ESG training, your business will be better equipped to negate reputational and operational risks linked to environmental, social and governance.

5.Enhances corporate reputation

In business, having a reputation that precedes you is a positive – as long as it’s a good reputation. A sustainable leadership course will not only help you gain knowledge about ethical business practices but also boost your business’s reputation.

6.Promotes long-term value creation and sustainability

ESG training focuses on integrating sustainability into your business and into corporate strategy. By diving into this kind of leadership course, you’ll find that sustainable practices become ingrained into the company, which goes far beyond compliance but builds lasting value and resilience.

Where can you study ESG?

The good news is that whether you prefer studying through a traditional university or an online university, most will offer ESG courses. Edith Cowen University (ECU), offers a graduate certificate of Environmental, Social and Governance Leadership that will help you to be a part of the solution and lead with purpose in any industry you pursue.

Final Thoughts

One thing that needs to be understood about ESG training and certification is that it’s not about hopping on a new trend to help organisations look better, but it’s rooted in creating genuine accountability to build a future where organisations will flourish as responsibly and sustainably as possible.