ESG (Environmental, Social, and Governance) - Social Factors - Thematic Intelligence

ESG (Environmental, Social, and Governance) - Social Factors - Thematic Intelligence

Summary

Companies are increasingly motivated by the responsibility they have to stakeholders (including customers and the wider community) and not just shareholders. As a result, they are widening their focus from primarily financial objectives to include social ones such as human rights, diversity and inclusion, health and safety, and community impact.

Key Highlights

• Certifications such as B Corp, donation commitments such as the 1% Pledge, and lists such as the Corporate Human Rights Benchmark (CHRB) and the FTSE Diversity and Inclusion Index provide companies with multiple benchmarks against which they can assess their social impact.
• Companies can no longer do the bare minimum by complying with relevant laws and guidelines regarding social sustainability. They can and will be assessed against their peers by neutral third parties, allowing them to understand their shortcomings and work to improve their practices.
• Social justice movements such as #MeToo and Black Lives Matter have highlighted the consequences of unsustainable societal practices. Younger consumers expect companies to operate in line with society’s progressive stance on social issues, providing the brand’s actions authentically align with its products and values. There is a particular focus on the eradication of abuse and promotion of equity, especially in the case of marginalized and vulnerable groups such as children or ethnic minorities.

• This report provides an overview of social sustainability, one of the most important themes for companies across all industries.
• It includes GlobalData's comprehensive ESG framework, covering environment, social, and governance factors. This framework can be used to assess a company’s ESG performance, the factors contributing to negative ESG consequences, and mitigating actions that can improve a company’s ESG performance.
• Taking each aspect of social sustainability in turn, this report provides examples of companies that are leading by example, and companies that have room to improve in human rights, diversity and inclusion, health and safety, and community impact.

• Sustainability used to be just about saving the planet. Today, it has morphed into an umbrella term for environmental, social, and governance (ESG) issues.
• Adopting a holistic approach that encompasses all environmental, social, and governance issues can help company leaders ensure all aspects of sustainability are covered in their ESG strategy. In 2024, companies are under pressure to be more transparent about their ESG credentials. GlobalData designed its ESG framework to help companies build trust with society and set them on a path toward a sustainable future.
• This report will help you understand what social sustainability is, why it is important, and what your business can do to become more socially sustainable.