Shifting From Operational Focus to Strategic Leadership
Read about how the nonprofit sector can build strategic capacity when it’s structurally designed to operate transactionally.
Tag Archive for: ESG
ESG – Here for the long haul
Trump 2.0 has sent shock waves throughout ESG circles and many commentators are suggesting that ESG’s time may be up. Such comments are short-sighted and overlook the depth of the corporate journey of ESG and therefore its resilience in the face of its critics.
Whilst ESG may be talked about as a trend that has found its way onto the agenda, its origins are more deep-rooted than that. Recessions, social unrest, inequality, all contributed to the impetus that saw Corporate Social Responsibility – the buzz term of the 90’s – evolve into today’s more formal corporate and ethical construct, ESG.
Principles of ESG
As a concept, ESG is not new. Its provenance and progress has arguably been public-driven, rooted in consumer and societal demand to do things differently, better. Increasingly since the turn of the century, shareholders have had to acquiesce to stakeholder activism as the demand for more responsible, accountable business practice took hold.
Park the acronym and examine the principles and what we’re talking about is accountability, transparency and equity. Double Materiality[i] is a critical, not hygiene factor these days. It makes sense that a well-run organisation would take a holistic view of itself examining both the ‘outside in’ and ‘inside out’ perspectives i.e. its impact on the society and environment in which it operates, and the society and environment in which it operates impact on the organisation. Success requires an appreciation of this symbiosis.
What You Measure Matters
Protagonists may argue that without regulation, ESG will falter, but this sidelines the very real ‘carrot’ impetus for ESG – the benefits of deploying equitable labour practices, currying favour with your communities, being efficient with resources, systemising your decisions. The list is long, and having metrics for these, as required under CSRD, furthers the benefits because what you measure matters[ii]. It provides evidence of effect. It improves decision making and it allows organisations to benchmark and therefore to aspire and to improve. All of which deliver two critical organisational asks, reduce risk and enhance investment, so the financially faint-hearted needn’t fear ESG.
The Importance of Delivering Positive Social Impact
Good governance is about making good choices and decisions. Doing so requires good information, insight and an ability to look to the horizon and anticipate what’s coming. Of course, regulation has a serious part to play in this, but do not underestimate the power of people too. There is a reason why many US-based corporates are ‘hushing’[iii] their ESG work, continuing their commitment to the principles and practices but not shouting about it in an unreceptive business environment. The point that ESG somehow hinders economic growth is unsubstantiated and when you consider that the 2017-2020 Global ESG Assets grew substantially[iv], the opposite is more likely to be true.
The bottom line here is the triple bottom line[v]. I’ve advocated that doing good is good for business since the 90s and there is endless amount of research and data to support this truism. But the importance of delivering positive social impact has never been so great as it is now and it is incumbent on all constituents of society – charity, community, voluntary, public, private – to continue our commitment and support of ESG in principle and practice, if not in name.
Written by Sheena Horgan, Director of Advisory Services, 2into3.
Get in Touch
If you would like to discuss your organisation’s ESG, social impact or governance needs, visit our webpage here or contact Sheena Horgan, Director Advisory Services at sheena.horgan@2into3.com.
Footnotes
[i] Double Materiality Guidelines
[iii] Guest Post – When Companies Go Quiet: Exploring the rise of Greenhushing – ESG Today
[iv] The Future of ESG: Under the Trump Administration – Michigan Journal of Economics
Achieving the ‘S’ in ESG: Why is it important?
With growing consumer demand for ethical business practices and increasing regulatory pressures, ESG principles are not just a compliance requirement – but a strategic approach to sustainability and social impact. In this blog, we outline the importance of a robust ESG strategy and how to achieve the Social (S) component.
What is ESG?
ESG stands for Environmental, Social, and Governance. These are called pillars in ESG frameworks and represent the 3 key areas that companies are expected to report in.
Environmental
This includes efforts to reduce carbon footprints, manage waste responsibly, and adopt renewable energy sources. Companies are assessed on their environmental sustainability practices, and those failing to meet expectations may face reputational and financial risks.
Social
This focuses on how companies manage relationships with employees, suppliers, customers, and communities. It includes labour practices, diversity and inclusion, community engagement, and broader impact on society.
Governance
This refers to the internal system of practices, controls, and procedures a company adopts to govern itself, make effective decisions, comply with legal standards, and meet the needs of external stakeholders. Good governance practices include transparent reporting, ethical leadership, and accountability.
The Importance of a robust ESG Strategy
Ireland has seen a significant shift in how businesses approach ESG reporting, largely influenced by European Union directives. The EU Corporate Sustainability Reporting Directive (CSRD) has now been implemented in Irish law through the European Union (Corporate Sustainability Reporting) Regulations, 2024 which came into effect on 6th July.
Furthermore, Irish consumers are increasingly choosing to support organisations which align with their values. Companies that demonstrate a commitment to environmental, social and governance responsibility are more likely to attract and retain customers, particularly in a competitive market.
Additionally, investors are now factoring ESG criteria into their decision-making processes. Sustainable investing is becoming increasingly popular, and companies with strong ESG performance are more likely to secure funding. Therefore, focusing on a robust ESG Strategy is critical to the future development and overall success of your organisation.
Achieving the ‘S’ in your ESG Strategy
The Social (S) in ESG is a critical component – strong social impact can enhance reputation, attract investment, boost employee morale, and mitigate risks. Furthermore, the Social (S) element of your ESG Strategy is more likely to be effective when strategically developed. A robust Social Impact Strategy plays a critical role in supporting businesses to achieve their broader ESG objectives.
Many organisations require external support to develop the Social (S) component of their ESG Strategy. At 2into3, we partner with your organisation, working at Board and staff level – engaging employees and members of the community to ensure that your Social Impact Strategy is a living document, owned by your organisation. By the end of this process, you will have a defined Strategy that will enable your business to create meaningful change, build stronger relationships with stakeholders and contribute positively to your community.
Taking the first step
If you’d like to enhance the ‘S’ in your ESG Strategy, get in touch with our Director of Advisory Services, Sheena Horgan at sheena.horgan@2into3.com to explore how we can provide guidance and support. For more information on our ESG service, visit here.
Takeaways from our Corporate Fundraisers Forum
We were delighted to host our sixth and final Corporate Fundraisers Forum on Wednesday 12th June at LinkedIn Ireland. Our Head of Partnerships Advisory Practice, Denise Cranston, commenced the Corporate Fundraisers Forum with The Wheel in February, which consisted of a monthly corporate partnership learning session. This forum connected 17 fundraisers from different nonprofits to discuss and develop their corporate partnerships action plan.
Opening address from Katrina Enros, Social Impact Manager at LinkedIn Ireland
Katrina joined us to share the different ways LinkedIn supports nonprofit organisations. LinkedIn for Nonprofits provides free resources and discounted products to help nonprofits hire and develop talent, connect with potential donors, build professional networks, and spread the word about your mission to attract new supporters. See which resources may be useful for your nonprofit here: https://nonprofit.linkedin.com/.
Corporate Fundraisers Forum Breakout Groups
Denise then welcomed all 17 attendees to their final session split them into groups of four to discuss their corporate fundraising action plans, their overarching goals and a number of specific objectives to achieve those goals. One person from each group then shared their learnings.
Group Feedback: Plans and Learnings
- “As a small organisation with limited resources, it’s important to work smarter, not harder when it comes to developing new partnerships.”
- “We are now looking at how we can amplify what we’re currently doing. Another key factor is to highlight where the corporate investment is going, providing an emotional connection to their investment.”
- “People give to people – potential partners want to hear personable stories from the people they’re impacting directly.”
- “It’s important to ensure we have a solid plan in place for where we can build new relationships – networking, local volunteer groups, or word-of-mouth.”
- “We’re starting off by developing a specific top prospect list and prioritising those contacts first.”
- “Secure sponsorships – either become a chosen charity partner or to partner on specific programmes.”
The breakout groups generated many ideas around how to start initial relationships with potential corporate partners, applying Denise’s tips from previous Corporate Fundraiser Forums to their action plan.
The attendees then took a short break so they could discuss their findings further, before heading into the final session.
Sinead Vaughan, Training Manager, The Wheel
Sinead joined the session to provide information on further training courses with The Wheel. The Wheel is Ireland’s national association of charities, community groups and social enterprises.
As a representative voice, they provide leadership to the charity and community sector and advocate on behalf of their growing community of members. As a supportive resource, they offer advice, training and other opportunities to people working or volunteering in the charity and community sector.
Concluding the Corporate Fundraisers Forum
Denise extended her thanks to the attendees and invited them to lunch, provided by LinkedIn Ireland. This in-person session was a fantastic way for the Corporate Fundraiser Forum participants to network in-person, share ideas and collaborate.
Are you interested in attending a Corporate Fundraisers Forum in future, or would like more information on developing a corporate partnership? Contact our Head of Partnerships Advisory Practice, Denise Cranston, at denise.cranston@2into3.com or on 086 085 5836.
6 Steps to Kickstart your Corporate Partnership
Getting started on your corporate partnership journey can seem daunting. It is important to step back and evaluate your goals, approach and realistic timelines so your entire team are on the same page. Here are 6 tips to kickstart your corporate partnership:
1. Be clear on your corporate partnership goal
If you are planning on building corporate partnerships for your charity, the first question to ask is “Why – what is your main goal for the partnership?”
The goal of a true partnership should be to help your charity achieve its purpose or mission. A corporate charity partnership should be mutually beneficial, based on a shared purpose, that could bring about real change and impact. The aim should not be about raising money. When you make your shared purpose your overarching goal, then the additional funding will follow.
2. Have a targeted and focused approach
It’s important to choose business partners who are the right fit for your organisation. Corporates often look to choose charity partners who can help them achieve their strategic goals. As well as identifying a shared purpose, consider which brands might be interested in the audiences you serve. Consider which corporates have challenges that you could help solve, such as strengthening their reputation, or engaging with their workforce. You should compile a targeted list of corporate partnerships (around 10 per fundraiser) to give you a good idea of where you should be focusing your attention. This will ensure that you can create a partnership that’s true to your cause and will stand the test of time.
3. Secure a face-to-face meeting
If you want to build corporate partnerships, then it is essential that you meet with your prospects face-to-face, or online. Securing meetings is one of the most important steps, but also one of the most difficult. Find out if your trustees, colleagues, or friends and family have a warm contact in the company, as this will make it much easier to secure a meeting. If you don’t have a contact, then find the name of the person you want to meet and email them directly. Keep your email short and create interest by stating your shared purpose.
4. Establish an equal relationship
Establishing an equal relationship on both sides is crucial when forming charity corporate partnerships. There is often a risk of imbalance, as the charity may feel like the company has the upper hand if they are providing funding, or expertise.
Successful partnerships will recognise the different strengths that each party can bring to the table and how you can best compliment each other. By identifying how you will build a meaningful relationship from the outset, you’ll avoid any tension further down the line and both sides will reap the benefits.
5. Be clear and realistic with each other
Be clear and realistic with each other about what you can and cannot commit to from the beginning, as this will help reduce the chances of an awkward conversation and any strain on your charity’s resources. Ensure you have regular communication to facilitate openness, so make sure you set up regular meetings to reinforce your alliance.
It is also vital to make it as easy as possible for them to work with you. This involves reaching out to them with a project in mind to start with and being clear about what they’re going to get out of it – whether it’s brand awareness, goodwill, or staff satisfaction. You can also provide ideas of how to raise money and supply helpful resources to promote what activity they’re doing in partnership with you.
6. Be willing to listen and adapt
It’s important to understand the partner that you’re working with. Your team can get together to brainstorm and come up with events that you think will work, but if you’re not willing to adapt the idea to the people that you’re partnering with, you’re creating a huge block. Of course, you will have ideas of what you want to do, but must accept their input, as they know their audience best. Don’t forget to listen openly to your partners.
Corporate partnerships are a great way of securing regular giving, but take care to provide regular updates of how the partnership is impacting your beneficiaries and helping you further your mission. The magic truly happens when a charity and corporate partnership go beyond a transactional donor recipient relationship to boost each other’s popularity and brand awareness.
Interested in learning more?
If you’re interested in finding out how we can help you to build successful corporate partnerships for your charity, then register for our Masterclass here. If you have any further questions, please get in touch with our Head of Partnerships Advisory Practice, Denise Cranston.
4 Key Ways Corporates Can Maximise the ‘S’ in ESG
Environmental, Social, Governance (ESG) is a framework designed to be embedded into an organisation’s strategy. As stakeholder attitudes develop over time, adopting and abiding by such principles is becoming a key consideration for corporates. With social value becoming an increasing part of organisations’ ‘licence to operate’, corporates are beginning to look at the ‘S’ as a means of maximising social impact.
The ‘S’ element within the ESG framework is challenging for businesses. The scale and breadth of social issues makes it more difficult to define than environmental and governance issues, leaving many companies confused on where to focus their social efforts.
Creating a charity and corporate partnership is one key strategy for maximising the ‘S’ in your ESG framework. However, there are also other approaches to consider.
Key Approaches to Maximise ‘S’ in ESG
Identify social impact issues your business is uniquely poisitioned to improve
Identify which potential issues your organisation is uniquely positioned to tackle, considering the resources your corporation has access to. Dedicate your organisation to those specific social issue(s) publicly in your external communications. Ensure your board, staff and partners know exactly what issues you’re working on and what you’re doing to help tackle the issue. This will ensure that all stakeholders are aware of the social issues you are trying to achieve.
Avoid being all-encompassing
No organisation can work on every social issue effectively. It’s unlikely that your business will have the expertise to position yourself externally as solely specialising in an entire social area. Working on complex issues requires collaborative partnerships, with each partner playing a distinct role. Therefore, clearly identifying the exact social impact issue(s) you are working towards will make it easier for investors to understand the ‘S’ in your ESG. This will increase investment potential, and improve your chances of further charity partnership opportunities.
Measure your progress
Identifying the correct social strategy within your ESG framework will take time to consider, develop and flourish. Your organisation may not have all the answers initially and it can take years to demonstrate results. Therefore, it is extremely important to invest in measuring your social impact. This will help identify which strategies are working well and need further development, and which ones need revised entirely within your ESG framework.
Seek partnernerships with diverse groups
Partnering with groups that share your purpose and commitment to advancing social impact will complement and accelerate your work. Ensure that inclusion remains a core component in your efforts, such as intentionally partnering with diverse groups and encouraging a wide range of voices, including stakeholders who are most impacted by the issue.
Identifying and developing the ‘S’ in your ESG can seem daunting. However, it is extremely important, not only for your organisation, but to help tackle greater social issues and create improved communities. By following these steps, we hope you can maximise the social element of your ESG.
Contact Our Partnerships Practice
If you are interested in developing your social impact, gaining support with your ESG strategy, or are interested in learning more about developing charity partnerships, visit here or contact Denise Cranston, Head of Partnerships Advisory Practice.