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‘The Next Big Leap’ Towards ESG Maturity in Tech Sector

January 25, 2022 3731 0 Diversity And Inclusion

‘The Next Big Leap’ Towards ESG Maturity in Tech Sector

The report sensitizes the technology sector on the material ESG topics for the industry – laying out the nine material topics across environmental, social, and governance that technology companies can use to formulate their respective ESG strategies. It also gives a five-point maturity framework that enables CXOs to analyze their current position and provides actionable steps to dynamically evolve in this fast-evolving topic.

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  • Influencers of Priorities
    • Customers - Large clients for Tech, such as FedEx, Microsoft and Unilever, now require explicit commitments from their partners on ESG disclosures.
    • Investors - Are a big driver of ESG discussions and actions. There is increasing questioning of the role of corporation in society and the total societal impact that goes beyond shareholder value.
    • Employees - ESG principles have become a huge competitive advantage in retaining and attracting talent.
  • Nine Near-Term Priorities for Tech Sector
    • Environment – Climate change and carbon footprint; Green technology and innovation for clients; Water and waste management
    • Social -  Human capital development; Skilling and development; Community and wellbeing
    • Governance – Corporate governance and management; Business ethics and compliance; Risk and Crisis Management
  • Pillars of the ESG Strategy
    • ESG governance model - Integrated into Board & Executive agenda with organization wide focus
    • Target oriented ESG Roadmap - With material focus areas & measurable time-bound commitments
    • Engagement of stakeholders across ecosystem - Transparent disclosures, owning narrative with rating agencies etc.
  • Move to Action: A Five-Point Maturity Framework
    • ESG driven corporate purpose & strategy
    • ESG Governance model
    • Target oriented ESG roadmap
    • Stakeholder engagement
    • ESG as an impact lever

 

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