Insights
Tools and tips to help your charity measure Environmental, Social and Governance (ESG) goals and objectives for your organisation
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It is becoming more important for charities to measure their own ESG impact. As charities, we still have an impact on the environment and people, outside of whatever the core strategy of the organisation is.
Charities are also responsible for ensuring they are running in a way that is leaving a lasting, positive impact on our world. This would include everything from how you look after your staff and beneficiaries, to ensuring the governance of your organisation is fair and equitable and that there are opportunities to support our natural environment.
The first thing you need to do is create an ESG strategy and set clear goals for your charity’s ESG impact. These should be things that are measurable and achievable. Though all three areas are important, it might be that you focus on a particular area – for example the environment, which may replace your sustainability strategy, if you have one.
Once you’ve set clear goals you need to ensure you can easily measure these. This can often be the hardest part. However, there are now lots of different tools that can make measuring impact easier.
The Charity Governance Code has been designed to support charities in ensuring they have high standards of governance. It sets the principles and guidance to have the best possible governance for your charity. There are seven principles to follow, with each one suggesting key outcomes and recommended best practice.
You can follow the Charity Governance Code online and use their “apply or explain” approach to improve your charities governance.
Developed by Sage who run popular accountancy software, Sage Earth offers carbon accounting software to help you measure targets to reach net zero emissions, including looking at your supply chain.
It is really comprehensive and uses your financial information to quickly measure your carbon footprint. It also gives tips and ideas to help reduce your carbon footprint
There are various carbon footprint calculators you can use. The Carbon Trust has a simple tool to help measure your footprint. It includes a tool for you to fill in your organisation’s fuel consumption, energy consumption, and other areas to measure your carbon footprint.
It is free, and you need at least 12 month’s of data to fill it in.
When it comes to your social impact and governance measurements, one of the best ways to see if things are improving is to ask people.
Use digital survey tools such as survey monkey to ask staff, volunteers, beneficiaries, and stakeholders key questions at different periods to measure change.
Makerble is a brilliant tool for measuring individual and team impact overtime too.
The digital tools won’t give you all the answers. To ensure you are successful in working towards your ESG goals, follow the tips below.
The more you can help other people understand what the goals are and what they can be doing to reach them, the easier it will be for you. This could include small friendly competitions amongst staff, particularly for environmental goals.
Make it really clear what you are trying to achieve and how teams and individuals can help. It should be part of all their roles to be making the right decisions to work towards your ESG goals.
Small and incremental changes make goals easier to understand. It also means you can see progress, compared to one big goal that is impossible to see until it is done.
Once you have created small steps it is easier to regularly report on progress. Make this part of your team or organisation meetings and definitely part of your annual reports. The more you can see progress, the more inspired people will be to keep you moving forward.
ESG should be integrated into everything you do. When you are signing up a new supplier, ask the right questions to ensure they are a sustainable company. When you are recruiting a new team, think about if you are doing this in a fair and equitable way.
The more ESG becomes part of everyone’s day to day way of working, the more you will see the benefits and quickly move towards your goals.
If your charity isn’t using ESG to measure progress, share how they can benefit with your wider leadership team and see if they can make it a priority too.
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