Environmental factors focus on minimizing risk to the organization and examining the organization’s impact on the planet. Accounting for these factors can also help optimize costs, improve operational efficiencies and drive growth through sustainable business practices. Embracing environmental stewardship helps businesses meet their own needs today without compromising the ability of future generations to meet theirs.
By prioritizing social factors, businesses do their part to drive positive societal change. A focus on equity and fairness, human rights, workplace safety, employee engagement and data privacy fosters trust and inclusion. Organizations that consider these factors will benefit from greater employee satisfaction and higher levels of employee engagement and productivity, talent–and customer–retention, and brand integrity.
Governance factors focus on business leadership and ethics, with a significant emphasis on risk management and value creation. Organizations with strong governance programs mitigate risk, promote ethics, drive business growth and prove more resilient over time while outperforming those without.