Where’s the DEI in ESG?

Imagine you’re a single parent household with a disabled child, struggling to keep your home warm.

Imagine you’re a black person living in the inner city; your asthma is getting progressively worse and you’re struggling to access the healthcare you need to stop wheezing.

These scenarios are an everyday reality for many people in the UK and globally. Within the UK, fuel poverty rates are higher for ethnic minority households, private renters, and single parent households. The impact of fuel poverty is greater on certain groups, too; older people and disabled people typically have greater energy needs at home yet they face more challenges in accessing income.

Statistically, Black individuals in the UK and the US tend to experience higher rates of asthma, with worse outcomes, compared to white individuals. This is perhaps unsurprising given marginalised communities are more likely to experience inequality of access to infrastructure and employment, plus higher levels of pollution.

And yet, when we talk about Environmental, Social, Governance (ESG) activities, we don’t tend to think about how Diversity, Equity and Inclusion (DEI) is considered across the board. Instead, companies report on their brilliant internal DEI activities and initiatives – making their workplaces more diverse and inclusive – without considering the impact or accessibility of their products and services on communities and wider society in the environment they inhabit.

At the Clear Company, we encourage our clients to consider how DEI is integrated as part of an aligned strategic approach to ESG.

Let’s take the example of diversity at decision-making level not being considered or evidenced. Governance is more likely to be skewed to the majority view as a result, affecting an organisation's ability to deliver impact to those who most need it or could be most affected by the organisation’s ambitions–or lack of.

We work with our clients to review their governance approach, ensuring perspectives from diverse voices are heard and factored into strategic decisions and succession planning considers representation across the entire talent pipeline.

Integrating diversity and inclusion into sustainability efforts doesn’t just drive innovation and better decision-making. It ensures wider support and better uptake for the efforts, because the communities they impact can enjoy them more equally.

The UN’s 17 Global Goals for Sustainable Development helps to illustrate the close connection between people, the environment and sustainable development. They serve as the basis of the ESG agenda for many of our clients when they are further along in their journey.

Interested in finding out more on connecting your ESG and DEI strategies? Drop us a line.