ESG Concept and Its Pillars
Environmental, social, and governance (ESG) criteria are standards for operations of a company or industry, considered by potential investors. Environmental conduct considers a company’s performance on sustainability and nature issues. Social criteria demonstrate its relations with communities, customers, suppliers, and employees. Governance is about the company’s top management, finances, culture, and accountability.
Each day, ESG criteria are becoming more popular among investors for assessing companies in which they might decide to invest. The reason for this is not simply institutional, but related to risk management – companies without clear criteria might present a greater financial risk due to their environmental and employment practices. The financial market is also launching products like mutual funds, brokerage firms, and robot-advisors now that employ ESG criteria.
Businesses are strongly connected with environmental, social, and governance (ESG) concerns. Therefore, their growth also depends on developing a solid ESG proposition. Of course, many top managers have no idea how to start this process, how to establish priorities, plan its main guidelines, and put them into practice.
What experienced industries have done can be summarized to elaborating or benchmarking a framework for this application. Before this stage, it’s essential to better comprehend ESG key elements:
E (environmental conduct) – is about the use and waste of natural resources, and the impact caused by your company during all the work processes, including carbon emission rates, energy usage and generation, and how you possibly relieve impacts with beneficial actions.
S (social conduct) – represents the company’s policies towards its employees, partners, suppliers, and the communities it interacts with as a business, including diversity and inclusion criteria and opportunities, human rights, fair labor conditions, and business reputation.
G (governance) – the structure of good practices and procedures used by the company to self-regulate, create sustainable and legal compliance, as well as reach investors and shareholders criteria. It includes education of the internal workforce to apply the guidelines and sustainability culture.
Project management with Scrumban can help a lot, not only on how to start but on all ESG implementing and improvement processes.
How to create value with ESG and Scrumban
Environmental, economic, and social sustainability demands responsibility and ethical actions by companies along their journey. It avoids and reduces damage to the environment and the deficiency of natural resources, besides impacting the economy.
Thousands of industries worldwide are figuring how to create an ESG to deliver more value with their products and services. It’s a process that takes planning and involves creating or adapting their corporate culture, reviewing the company’s vision and guidelines, complying with new information with the workforce, creating engagement, and improving production methods and processes. It’s not an exaggeration to say that it represents a huge transformation for many businesses, since some of them have not been shaped to consider environmental and social issues from the start. That’s why this transformation needs to be supported by a dynamic workframe, such as Scrumban.
Benefits of Creating and Applying an ESG with Scrumban
- Rising your corporate brand’s value before the market, stakeholders, and society in the long-term;
- Attract customers that care about social and environmental matters;
- Developing cost-effective, sustainable solutions and saving natural resources;
- Building purpose-driven teams, increasing employees’ motivation and engagement in the company’s goals, aligned with social issues;
- Increase your company’s value before investors;
- Becoming a reference in compliance and good practices;
- Becoming an adaptative company/industry before the environmental and economic crisis.
What is Scrumban and How It’ll Help You Apply Your Business ESG
Scrum is a framework for developing and maintaining complex products, according to Ken Schwaber and Jeff Sutherland (authors of the Scrum framework and several books on it, like The Scrum Guide). It is applied to help teams work together, collaborate to develop solutions, and increase productivity, organizing their work and delivering value constantly.
Scrumban is a combination of the best agile frameworks: Scrum and Kanban. First created by the Lean developer Corey Ladas, this combination allows you to excel at workflow management, with detailed control and flexibility to move forward with your demands.
For specialists, Scrumban is seen as an evolution of Scrum, when the Scrum team starts to use Kanban lean practices in their processes. Uniting Scrum’s agile principles to the flexibility and constant improvement of Kanban will result in Scrumban – and that’s a powerful way to manage the evolution of a business/industry wanting to optimize resources and make smart usage of them, becoming socially responsible.
Reasons to use Scrumban to apply your ESG:
- Your ESG is not something static or definite, it will take you constant improvement, and Scrumban is the ideal framework to manage increments;
- Scrumban allows you to manage ESG guidelines along with production processes, as interdependent issues, and improving both of them;
- Appropriate structure to solve problems and bugs, following guidelines;
- Ideal framework to monitor all ESG application stages;
- Helps you create and achieve measurable and attainable ESG goals;
- Collaborative framework to engage all company’s team on common goals;
- The agility of accomplishments, with team tasks visual management;
- Helps to create a sense of commitment, team engagement, and dynamism;
- Allows you to celebrate small achievements and monitor pending actions;
- Possibility to manage several teams separately, with specific collaborative Gitscrum Boards (Environmental, Social, Governance – for instance);
- Get a broad view of your ESG project, visualizing tasks and making adjustments when necessary;
- Control the number of tasks delegated to each team and collaborator, monitor their progress, and consider how they can improve.
Steps to Create Your ESG with Scrumban
- Plan Your ESG Project:
Companies are unique, and so are their ESG programs. Of course, you will probably do some benchmarking on the web and local associations, to check best practices, legal issues, and usage trends to elaborate your own.
After that, you can formalize your final ESG on a GitScrum Document. It’s recommendable that you create a specific project – “My ESG Program” on GitScrum, where you will add all related tasks and actions you planned for the 3 core areas – environmental, social, governance. It will be important to manage it with Scrumban right after.
- Engage Your Team on ESG
You can’t drive transformation alone but in teams. Use extra project management features to comply with the information on your ESG program and engage your team about the goals that are being pursued together, like GitScrum Wiki, GitScrum Mind Mapping, and GitScrum Documents. These will be important to be referenced on your Scrumban tasks.
- Apply Your ESG With GitScrum Board
Create your collaborative working board, your GitScrum Board, to put actions into practice, delegate tasks. Manage your workflow being flexible, uniting the best of Scrum and Kanban (Scrumban) to monitor collaborators’ accomplishments, make changes anytime and assure deadlines are met.
- Create GitScrum Sprints
Integrate the GitScrum Sprints feature to your GitScrum Board’s tasks to obtain the best of the Scrumban concept. Associate tasks to sprints (or milestones) weekly and ensure dynamic achievements and engagement from your team. With GitScrum Sprints, teams become more responsive and increase task awareness.
- Monitor and Evolve
Obtain automated reports on your weekly and monthly evolution towards your environmental, social, and compliant evolution. Your GitScrum project management features allow you to assess what was done by the team, the objectives met, what needs to change and be adjusted.
- Grow with Feedback
You can invite clients and customers to collaborate on your ESG process, too. GitScrum project management tool offers you the possibility to grant them specific roles, visualizing only what concerns them, and providing feedback/suggestions to your team. If you unlock our business plan to get GitScrum White Label, you can even build a personalized client-assist area using your own logo and domain!
Let’s make a better society together with healthy environmental, social, and governance policies!
Sources: Thanks McKinsey.com and Investopedia.com for useful data on ESG