In recent years, the concept of sustainability has gained increasing relevance, to the point of becoming an essential element within corporate strategies.
evaluating the commitment of companies towards the environment is not always simple; also because a broader concept of social responsibility goes well beyond a sustainable approach, bringing positive implications also on the brand and the working environment.
Among the most used tools to measure the social and environmental impact of companies, ESG criteria come into play.
But what exactly are these factors, what do they calculate and why?
And, from a more sustainable perspective, what is it and What could be the role of Corporate Welfare? How is the HR division involved?
What are ESG factors? Environmental , Social and corporate Governance
The acronym ESG represents the 3 areas considered fundamental for evaluating the sustainability of a company:
- Environmental (E), in relation to environmental impact, management of natural resources, CO₂ emissions, climate change and the circular economy.
- Social (S), which includes employee well-being, diversity and inclusion , human rights and community relations.
- Governance (G), referring to corporate management practices, ethics, financial transparency, and regulatory compliance.
Companies that integrate these criteria into their strategies are committed to improving their long-term sustainability, contributing to the well-being of society and the planet.
Furthermore, starting this year - after the publication in the Official Journal of Legislative Decree 125/2024 - it has become mandatory for many Italian companies to publish a sustainability report , in compliance with the ESG information criteria.
What are the ESG objectives and what is the rating ?
ESG criteria aim to achieve some main objectives, including: reducing environmental impact (through sustainable practices), improving social well-being (through welfare policies) and ensuring transparent and responsible governance .
The honesty with which a company communicates its practices to reduce its environmental impact and its social and governance commitment is fundamental!
To measure the level of sustainability of a company, ESG ratings are used , that is, scores assigned by independent bodies on the basis of specific parameters, to generate reliable and convincing sustainability reports .
The “social” score of an ESG rating is determined based on customer satisfaction, respect for human rights, labor standards, diversity, inclusion, data security and privacy .
In other words, compliance with ESG criteria goes hand in hand with the objectives of Agenda 2030 , signed in 2015 by 193 United Nations countries, including Italy, which is based on 5 fundamental pillars, summarised in 5 “Ps”:
- People
- Prosperity
- Peace
- Partnership
- Planet
Corporate Social Responsibility
Integrating ESG criteria is not only an ethical choice, but also a competitive advantage.
Adopting social responsibility policies also means investing in the well-being of employees, improve the working environment and strengthen the connection with the local community .
In this juncture, offering benefits such as smart working and flexible working policies , Corporate Welfare plans to support the physical and mental well-being of employees, and investments in social and environmental projects can make the difference!
ESG Analysis for Businesses
To evaluate a company's impact in terms of ESG, specific analysis and reporting tools are used, including:
● Sustainability reports , which highlight the company's ESG performance.
● Environmental and social risk assessments , to identify areas for improvement.
● ESG compliance statements , to attract investors and customers.
Companies that leverage these tools also improve their reputation and position themselves as industry leaders.
But on a practical level how does it work for large companies and SMEs ?
Who deals with ESG in the company?
Implementing ESG criteria requires a multidisciplinary approach.
In more structured companies, this responsibility is therefore generally entrusted to specialized figures such as: ESG Manager or Sustainability Manager , who coordinate sustainability strategies; HR Manager , to integrate Corporate Welfare into ESG policies, to improve information, optimize gender balance and more; and of course also Financial Managers , who monitor sustainable investments.
In many companies, the board of directors is also directly involved in defining ESG objectives.
What are the 3 main drivers of an ESG approach?
The adoption of ESG criteria is driven by 3 key factors :
- rules and regulations , as more and more governments impose sustainability standards on companies.
- Investor pressure as sustainable finance grows and capital flows towards companies with high ESG scores.
- Consumer expectations , because people increasingly tend to prefer responsible and sustainable brands, also taking this aspect into consideration when making decisions.
Ignoring these drivers therefore translates into a risk for companies of losing competitiveness and confidence on the market.
Welfare and ESG criteria: sustainable investments
Corporate Welfare (especially the Green Welfare ) and sustainable investments are closely linked to ESG criteria.
In fact, more and more companies are choosing to invest in useful solutions to improve and support employee well-being and reduce environmental impact.
Concrete examples of ESG- oriented welfare include sustainable mobility plans , such as incentives for the use of eco-friendly means; corporate health and well-being , with prevention and healthcare programs, but also to promote work-life balance and overall wellbeing .
Continuous training and skills development , to create an inclusive and innovative work environment are another key element; such as green building , for eco-friendly work spaces and territorial welfare , to contribute to well-being outside of work.
The exploitation of technology for this purpose, using digital welfare platforms and/or specific apps , allows us to put people at the centre and focus initiatives in a personalised way , to reach real objectives much more quickly.
Specifically, Euty is an excellent example of this.
The app is a reliable guide for everyday life , which allows you to inform yourself, learn and make informed choices. It offers practical and personalized guidance, promoting growth and well-being through continuous support and concrete, rapid and useful answers.
The concept of “Info-Training” and the customization of needs are fundamental elements for a Welfare and people care approach that looks to the future not only of the environment, but also for the psycho-physical well-being of employees!
Integrating ESG criteria into corporate strategies is therefore a choice that brings economic, social and environmental benefits.
Companies that adopt this approach improve their reputation, attract investors and talent , and contribute to a more sustainable and responsible future.
Implementing concrete Green Marketing strategies - and not subtle forms of greenwashing - can therefore make the difference!
Attention to sustainability and compliance with ESG criteria is not just a trend , but an ethical and social necessity, which requires a real cultural change and defines the way in which companies must operate, to ensure a positive impact on society and the planet.
Welfare platforms and tools represent - today more than ever - a transversal and effective tool even for those who are "newbies" and want to start setting up social sustainability policies in the company!