ESG is a Burning Issue for HR Strategy and Organisational Design



Despite the climate emergency forcing businesses to take urgent action to reduce their impact on the environment, research has shown a worrying lack of focus on climate and sustainability matters. This raises serious questions about ESG's role in businesses and senior leadership. This article from the 10th edition of the Armstrong Craven Review explores why a genuine sustainability strategy is now vital for businesses.

Due to the rising concerns about the climate emergency, organisations are under increasing pressure to address their environmental impact, clearly demonstrate responsible business practices, and implement effective environmental, social, and governance (ESG) strategies. 

The world is scrutinising every move companies make toward sustainability.  Only paying lip service to ESG can have serious consequences on investment, regulatory compliance, insurance, and brand image. Put simply, sustainability equals good business performance. 

Research carried out by Armstrong Craven found that only 10 out of 121 major companies have a Chief Sustainability Officer sitting on the Executive Committee, driving the ESG strategy from the very top. And 39% of companies have no ESG ownership in the top two leadership layers of the business.

These variances raise many questions: where should ESG sit within a business? Who is responsible for it? How should it be reported?

The key focus points in the article are:

  • Why a genuine sustainability strategy is now crucial for businesses

  • What climate change impacts does ESG strategy need to address?

  • How does organisational design fit into ESG strategy? 

  • Does ESG need to professionalise? 

To explore this vital topic further, complete the form above to download the full article from the review.

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