Metrics that Matter: DEI Boosts the Social Score in ESG Reporting
Whatever your company’s top strategic objectives, tracking environmental, social, and governance (ESG) metrics will increase your chances of success. Proactively collecting and analyzing ESG data generates valuable internal insights that will help companies identify performance gaps, weaknesses, and areas for improvement. Reporting ESG metrics also enables corporations to enhance their public image, boost investor support, and demonstrate future business potential.
Whether your company is seeking to enter a new market, introduce an innovative product line, or gain shareholder support for an upcoming merger or acquisition, demonstrating impressive ESG metrics will bolster your efforts. And, a strong diversity, equity, and inclusion (DEI) program can push your company’s ESG metrics higher. In this article, we look specifically at how DEI boosts the social outcomes that are included in ESG and detail how you can increase your company’s social performance ratings.
What social metrics are included in ESG?
The social aspect of ESG is a measurement of how a company manages its internal and external relationships. Social categories typically included in ESG are work conditions; health and safety; workforce and supplier diversity; corporate citizenship; and employee sentiment, recruitment, and retention. The specific metrics tracked and reported may vary from company to company. At Trane Technologies, for example, they track dozens of metrics in the social category. A sampling of these data points includes:
