Women in Electronics (WE) Posts Q&A on ESG and Diversity
What is ESG?
ESG stands for Environmental Social Governance. It is a document that outlines global standards and regulations for all public companies, set forth by the World Economic Forum in 2020.
It is a system of 21 core and 34 expanded metrics processes by which an organization is “scored” in order to determine its global rating in the areas of environmental responsibility, social obligation, and governance compliance. The higher the score the more profitable the organization and easier to sell and the lower the score, the less profitable and the least likely to sell. For mergers and acquisitions (M&A), ESG has become essential and has captured the attention of leaders in every public company Access HERE the World Economic White Paper on ESG.
How does DEI fit into the conversation?
All the data supports that relative returns increase and better decisions are made with inclusive teams. DEI is not just the right thing to do, it’s the profitable thing as well.
At a WE virtual event in 2021, Taya Paige on the WE Advisory Council communicated that ESG is a shift from shareholder capitalism to stakeholder capitalism: “We now live in a world of stakeholder capitalism which focuses on strategies to achieve organizational goals by fostering the proactive involvement of stakeholders around issues like people, planet, prosperity vs the classic shareholder capitalism.”
Access article HERE from Rob Danna, Senior Vice President at ITA Goup, an organization specialized in cultural transformation.
How does DEI improve my bottom line?
When implemented properly – with a growth mindset and an inclusive culture, talent retention increases, profits rise, and everyone benefits! Access article HERE on the importance of ESG in regards to mergers and acquisitions.
To sum it up, in order for an organization to achieve a high ESG rating, they will need to score high in all areas: environmental, social and governance guidelines. Women in Electronics can help with the “S” part of ESG and this is where DEI efforts are highly critical!
There is a lot of progress to be made in my organization. Where do I start?
Hop in where you are and progress from there! The biggest barrier to most organizations is fear. When implemented properly and for the right reasons, DEI efforts increase company morale, improve talent retention, and increase profits.
For any organization within the Electronics Industry or related End User Markets looking to progress their DEI efforts, WE is here! Your investment in Women in Electronics is an ethical application of funds towards DEI efforts and ESG alliance. WE offers sponsorship packages, development & opportunities for talent, and DEI consultation.