# Enabling effective ESG investment
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-06-08
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Leveraging IT for ESG Transformation: Expert Insights
Meta Description: Learn how Dave Page, Founder & Chief Strategy Officer at Actual Experience, explains the importance of using IT to drive ESG transformation, reduce carbon
URL: https://financedigest.com/enabling-effective-esg-investmenthtml

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_By_ **_Dave Page,_** _Founder and Chief Strategy Officer at Actual Experience for your convenience._

_Over the past decade, companies of every size have re-evaluated their Environmental, Social and Governance (ESG) strategies, recognising not only the importance of improving their status for customers, employees and business partners but also the new financial imperatives. Investment is increasingly ESG driven, with a_ [_global PwC survey_](https://www.pwc.com/gx/en/news-room/press-releases/2022/awm-revolution-2022-report.html#:~:text=Asset%20managers%20globally%20are%20expected%20to%20increase%20their,PwC%E2%80%99s%20Asset%20and%20Wealth%20Management%20Revolution%202022%20report.) _of the asset and wealth management industry showing an unprecedented acceleration towards ESG investments in markets around the world._

_Corporate reputation now increasingly hinges on pledges to minimise carbon emissions and progress toward the United Nations’ 17 Sustainable Development Goals (SGDs) and demonstrable commitment to employee_ _Diversity, Equity and Inclusivity (DEI). Global regulation is now enforcing change, pushing [businesses across all sectors to embed ESG](https://www.financedigest.com/esg-investment-making-your-business-a-more-sustainable-place.html "ESG investment: Making your business a more sustainable place") within every part of the organisation. With so many areas to tackle across an incredibly broad remit,_ _how can [businesses prioritise change](https://www.financedigest.com/unitedhealth-to-sell-change-healthcares-claims-business-for-2-2-billion.html "UnitedHealth to sell Change Healthcare’s claims business for .2 billion") and demonstrate tangible improvements?_

_Dave Page, Founder & [Chief Strategy Officer](https://www.financedigest.com/inmobi-names-inderbir-singh-pall-as-chief-technology-officer-of-inmobi-advertising-platform.html "InMobi Names Inderbir Singh Pall as Chief Technology Officer of InMobi Advertising Platform"), Actual Experience, explains how an inherent understanding of the unique employee experience can enable companies to leverage IT as the backbone of its ESG transformation— to eradicate digital inequality, reduce carbon emissions and embrace new business opportunities._

## **New ESG Imperative**

For the past few years, corporate commitment to ESG has played a key role in [investment strategies](https://www.financedigest.com/the-10-year-model-and-beyond-why-you-should-take-a-long-term-outlook-to-investment-strategy.html "The 10-year model and beyond – why you should take a long-term outlook to investment strategy"), with companies increasingly aware of the vital importance of their commitment to sustainability and employee wellbeing. While reputational mis-steps can devastate [share price](https://www.financedigest.com/siemens-ceo-watching-the-share-price-of-siemens-energy-ceo.html "Siemens CEO watching the share price of Siemens Energy – CEO") and undermine stakeholder confidence, the potential gains are also compelling. A [recent study](https://www.imd.org/ibyimd/sustainability/13-sustainability-trends-driving-business-in-2023/) by  McKinsey estimated that the transition to net zero alone will provide business opportunities of $12trn per year – from capturing new markets, addressing changing customer and investor needs as well as attracting and retaining talent.

Adding to these [commercial imperatives](https://www.financedigest.com/the-commercial-imperative-behind-employee-happiness.html "The commercial imperative behind employee happiness") is the pressure created by the fast-evolving regulatory landscape. The new US Securities and Exchange Commission [plans](https://www.reuters.com/legal/legalindustry/upcoming-sec-climate-disclosure-rules-bring-urgency-esg-data-strategy-planning-2023-01-30/#:~:text=The%20new%20disclosure%20rules%20would,Scope%201)%20and%20indirect%20emissions), for example, to enhance and standardise climate related disclosures for investors, will require listed companies to disclose information about direct greenhouse gas (GHG) emissions (Scope 1), indirect emissions from purchased electricity or other forms of energy (Scope 2), as well as certain types of GHG emissions from upstream and downstream activities in its value chain (Scope 3).

The [challenge for companies](https://www.financedigest.com/multigrain-bread-mix-market-size-share-top-leading-companies-consumption-drivers-trends-forces-analysis-revenue-challenges-and-global-forecast-2029.html "Multigrain Bread Mix Market: Size, Share, Top Leading Companies, Consumption, Drivers, Trends, Forces Analysis, Revenue, Challenges And Global Forecast 2029") across all sectors, however, is not only understanding how best to drive change but also to demonstrate tangible improvements.

## **Proof of Change**

While businesses have been collecting enormous volumes of data over the past two decades, most boards now acknowledge there are significant gaps in understanding to support ESG strategies. How many companies are able to [measure the impact](https://www.financedigest.com/adnami-outlines-new-metrics-for-the-measurement-of-attention-in-high-impact-advertising.html "Adnami outlines new metrics for the measurement of attention in high impact advertising") of Working from Home (WfH) on reducing the business’ Scope 3 carbon emissions? How many know if progress is being damaged by the drive to get employees [back into the office](https://www.financedigest.com/rouzbeh-pirouz-why-disabled-employees-should-not-be-forced-to-go-back-to-the-office.html "Rouzbeh Pirouz Why disabled employees should not be forced to go back to the office")?

Is the company’s DEI strategy being undermined by the digital inequality associated with [remote working](https://www.financedigest.com/it-departments-getting-a-bad-rap-over-remote-working.html "IT DEPARTMENTS GETTING A BAD RAP OVER REMOTE WORKING") and, if so, who is affected and what is the root cause? Without detailed, immediate insight in the reality of each employee’s [unique digital](https://www.financedigest.com/digitally-projected-revenue-to-be-the-unique-selling-point-of-aerosol-therapy-market.html "Digitally projected revenue to be the unique selling point of Aerosol Therapy Market") workplace experience, businesses are dangerously constrained. They cannot prioritise [change and they cannot demonstrate the improvements required by regulators and investors](https://www.financedigest.com/entrepreneur-investor-dale-w-wood-shares-how-he-is-using-his-funds-to-create-change.html "Entrepreneur & Investor Dale W Wood Shares How He Is Using His Funds to Create Change") alike.

It is now essential to understand the [digital workplace and the unique](https://www.financedigest.com/digitally-projected-revenue-to-be-the-unique-selling-point-of-surgical-chisels-market.html "Digitally projected revenue to be the unique selling point of Surgical Chisels Market") experience of each employee. By identifying how each individual feels about their digital workplace, in detail and continuously, a company gains an extraordinary depth of knowledge that can not only highlight ESG priorities, from addressing digital inequality to reducing [carbon emissions](https://www.financedigest.com/greenpeace-germany-sues-volkswagen-over-carbon-emissions-targets.html "Greenpeace Germany sues Volkswagen over carbon emissions targets"), but also enable fast, effective and measurable change.

## **Inclusivity and Equality**

Ensuring workforce well-being is a core component of any ESG strategy – and [companies have invested](https://www.financedigest.com/socially-responsible-investing-sri-how-to-invest-in-companies-that-align-with-your-values.html "Socially responsible investing (sri): how to invest in companies that align with your values") heavily to understand and improve diversity, inclusivity and employee well-being. After the extraordinary shift in workplace experience over the past three years, it is now vital to understand if any remote working employees are suffering due to digital inequality. Are the less well paid in the organisation disproportionately affected by their inability to invest in technology at home? What is the [impact on their ability to work](https://www.financedigest.com/the-pandemics-impact-on-working-mothers-new-research-reveals-that-two-thirds-have-stopped-working-or-now-work-less.html "The Pandemic’s Impact on Working Mothers: New Research Reveals That Two-Thirds Have Stopped Working or Now Work Less"), their interactions with colleagues and their long-term job prospects?

To truly understand the unique employee digital experience, senior [management require more than incremental HR survey information and system](https://www.financedigest.com/traffic-management-systems-growing-at-a-cagr-of-22-5-for-2022-28.html "Traffic Management Systems growing at a CAGR of 22.5% for 2022 – 28") uptime figures from IT. They need hard scientific data, a quantified [analysis of the impact](https://www.financedigest.com/industrial-catalytic-converter-market-size-share-forecast-report-2027-covid-19-impact-analysis-fmi.html "Industrial Catalytic Converter Market Size, Share, Forecast Report – 2027 – COVID-19 Impact Analysis | FMI"), well-being, productivity and inequality associated with each employee’s digital experience. The results can be distressing for those committed to DEI. By translating IT data into a human metric for each employee, one organisation discovered a massive 82% of its employees have a frustrating digital experience. Even worse, 1.4% were suffering to the extent that their lives were being ruined by a lack of usable [digital workplace technology](https://www.financedigest.com/drive-embarks-on-digital-sustainability-journey-starting-with-streaming-technology-partner-seenthis.html "Drive embarks on digital sustainability journey, starting with streaming technology partner SeenThis").

This insight allows a [business to prioritise improvements](https://www.financedigest.com/how-can-call-tracking-improve-your-business.html "How can call tracking improve your business?") for specific employees. Further, it also reveals exactly where, how and why the digital inequality issues arise, allowing the organisation to fast-track improvements, delivering dramatic improvements for those individuals.

## **Accelerating Emission Reduction**

Transforming the quality of the digital workplace to deliver an optimum employee experience provides an array of opportunities to support both [ESG goals](https://www.financedigest.com/how-can-pension-schemes-align-with-esg-goals.html "How can pension schemes align with ESG goals?") and add business value. It can provide a foundation for reducing the carbon emissions associated with employee commutes and [business travel](https://www.financedigest.com/foreign-business-travel-missing-ingredient-for-irish-hotel-recovery-dalata.html "Foreign business travel missing ingredient for Irish hotel recovery – Dalata"). When employees can confidently [replace face-to-face meetings with overseas clients with a compelling digital](https://www.financedigest.com/the-shoulder-replacement-market-to-be-presided-over-by-exponential-digitization.html "The Shoulder Replacement Market to be presided over by exponential digitization") alternative and when they feel engaged with colleagues wherever they are located, cultural change will accelerate. People at every level of business will be encouraged to embrace the value of an engaging virtual connection, [cutting the travel that is such a heavy contributor to scope 3 emissions](https://www.financedigest.com/british-funds-tell-texas-emission-cut-vows-matter-for-our-reputation.html "British funds tell Texas: emission-cut vows matter for our reputation").

An improved employee [digital experience can also deliver extraordinary productivity](https://www.financedigest.com/the-wound-cleanser-products-market-to-climb-up-the-ladder-based-on-digitization.html "The Wound Cleanser Products Market to climb up the ladder based on digitization") gains. The company above identified an average 6.9 days lost per employee each [year due](https://www.financedigest.com/child-resistant-single-dose-pouches-market-one-the-most-booming-industry-in-upcoming-years-due-to-global-demand-by-2031.html "Child Resistant Single Dose Pouches Market | One the Most Booming Industry in Upcoming Years Due to Global Demand by 2031") to the slow digital workplace, rising to 32 days for those with the worst experience. The ability to prioritise, remediate and improve the employee experience not only achieves ESG goals by eradicating digital inequality but also delivers [bottom line](https://www.financedigest.com/how-high-performers-can-increase-a-bottom-line.html "How high performers can increase a bottom line") benefits, from productivity as well as the retention gains associated with a positive digital workplace.

Critically, this process also provides the tangible measurement required to meet regulatory and investor reporting requirements. It can immediately show [investors the number the employees within the ‘well-being’ cohort that need](https://www.financedigest.com/exclusive-new-investor-backs-bt-says-fibre-jv-may-not-be-needed-source.html "Exclusive-New investor backs BT, says fibre JV may not be needed – source") additional support – and allow a company to demonstrate year on year improvement. It can demonstrate the reduction in wasted time and confirm the cut in travel related carbon emissions. It can prove the business is committed to continually improving both employee experience and its impact on the world – a process that will not only meet regulatory and [investor goals but also support business](https://www.financedigest.com/thoracic-drainage-devices-market-rising-new-business-opportunities-for-investors.html "Thoracic Drainage Devices Market Rising New Business Opportunities for Investors") success through improved staff retention and recruitment.


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