2023-03-13

How to work with the ‘S’ in ESG – Measurement and Method

Dela:

How to work with the ‘S’ in ESG – Measurement and Method

Latest updated: 22 June 2023

Social sustainability has become an important factor for companies and organizations in recent years, not least because it is one of the three criteria in the sustainability measure ESG. To succeed, one should work based on measurable criteria, while also remembering that measurements are just a tool to ensure progress. In between, continuous efforts are needed to create the right conditions for sustainable performance. This includes developing employees' self-leadership and nurturing well-being and motivation in the workplace.

 

ESG stands for Environmental, Social, and Governance, and it is a sustainability measure used to evaluate companies from a non-financial perspective. The "S" represents social sustainability, which has become a highly significant concept in recent years.

Social sustainability encompasses various aspects, but one of the most important ones is the well-being, satisfaction, and opportunities for growth among employees within an organization. Stress and burnout are significant issues in today's work environment, often leading to costly sick leaves, high turnover rates, and decreased productivity.

To achieve social sustainability in the workplace, it is necessary to create conditions for sustainable performance.

What does sustainable performance mean?

Today's employees face intense pressure for change, as the working world becomes increasingly complex and competitive in the era of globalization and digitalization. All employees have high demands placed upon them and are expected to take significant personal responsibility, while also dealing with a rapidly growing flow of information.

Our brains are not naturally equipped for this reality. The dynamics and flow of information constantly put our brains at risk of perceiving "threats" and "dangers," leading to stress.

Sustainable performance involves providing employees with the means to handle the strong pressure for change they face and offering the mental tools and development opportunities required to perform without succumbing to harmful stress.

There are several aspects that companies need to work on to enable sustainable performance and, consequently, social sustainability in the workplace. Here are some examples:

Developing self-leadership

In today's work environment, all employees need to be good leaders, especially when it comes to leading themselves. Good self-leadership is a fundamental requirement for sustainable performance. Self-leadership necessitates self-awareness, being conscious of one's motivations, personality traits, and behaviors. It involves understanding what triggers motivation or stress, for instance.

Self-leadership also requires adopting a growth mindset, which means perceiving one's own and others' abilities and talents as malleable and capable of development. If someone lacks a skill, they say they don't have it yet. "I'm not good at Excel yet." It embraces the belief that all abilities can be developed. The opposite of a growth mindset is a fixed mindset, which implies being stuck in the mistaken belief that one has only the abilities they currently possess and that further development is not possible.

Meaning, motivation, and engagement

To sustain high-performance levels, it is crucial that employees find their work meaningful, motivating, and engaging. Otherwise, the risk of stress and mental health issues increases. Employees should have a clear understanding of the company's purpose and the role they play in fulfilling that purpose.

It is also important for employees to feel competent, have a high level of autonomy, while also feeling like they are part of a team. Additionally, employees should be provided with opportunities for continuous development, such as through training or coaching.

Another factor that contributes to a sense of meaning and engagement is when a company actively engages socially in society, especially when employees can participate in such activities.

Communication and feedback

Effective communication is another essential prerequisite for enabling sustainable performance. This applies to both in-person and digital communication within the office.

What is particularly important is that employees receive ample feedback, especially in the form of affirmation. As mentioned earlier, our brains are inclined to perceive "threats" in today's ever-changing work environment. For every "threat," an employee needs about ten affirmations; otherwise, they risk experiencing harmful stress. It may sound excessive, but affirmations do not need to be elaborate—it can be as simple as acknowledging that the employee has satisfactorily completed a task.

Health, well-being, and work environment

Social sustainability and sustainable performance also require organizations to prioritize the health, well-being, and working environment of their employees - not just through measurements, but by making these factors an integral part of everyday work life.

Actively promote employees' interest in physical activity, proper nutrition, and other related aspects. Take responsibility for the working environment and ensure clear boundaries between work and personal time, whether employees are working in the office or remotely.

Social sustainability is one of the most critical aspects to consider in today's work life. Measurability is absolutely necessary to ensure progress, but for real progress to occur, continuous efforts are required in promoting sustainable performance, as well as health and well-being in the workplace.

Social sustainability - the 4 most important metrics

Measurability is crucial to track progress. With the help of Zebrains, you can continuously work on employee development and social sustainability, achieving measurable results. On Zebrains' platform, we measure over 50 data points, and using this data, we can identify the most important metrics for social sustainability in the workplace. Companies using the platform gain access to group-level data and can observe the percentage change between baseline, current status, and desired outcomes for these metrics.

The following 4 metrics have been identified as the most important:

Work-life balance: The balance between work and personal life is very important to prevent stress and mental health issues in the workplace. Sustainable performance requires having time for recovery and completely disconnecting from work. This metric has become even more crucial in times of hybrid work, where it can be challenging to distinguish between work and leisure.

Self-leadership: In today's work environment, every employee is expected to have a high degree of autonomy, meaning freedom with responsibility. To manage these demands and take care of oneself, good self-leadership is required. One way to develop individual self-leadership is by seeking the assistance of a coach.

Stress resilience: This metric is not about being a superhero but rather about performing sustainably and having a solid baseline energy level. Stress is a significant problem in today's work environment, leading to costly sick leaves and declining productivity. Preventing stress is one of the most important factors in achieving social sustainability.

Internal collaboration: Today's employees often have a high degree of autonomy but are also expected to be part of a team. This is a significant challenge that requires effective communication, a strong sense of belonging, and trust. This metric has become even more critical with the rise of hybrid and remote work. Regardless of whether communication happens digitally or in-person, the team needs to stay cohesive.

To learn more about Zebrains' sustainability reporting,  click here.

Subscribe to knowledge!

In our newsletter, you can take part in the latest in areas such as personal development, leadership, motivation and of course coaching! We provide you with tips throughout your development journey, unique offers and insights from our experts at Zebrain Labs.

This field is for validation purposes and should be left unchanged.