Customers today often look to work with environmentally and socially friendly organizations to do business with. This has become especially important for organizations in the financial services industry. Many different regulations have been put in place to hold financial institutions to a certain standard regarding how they operate their organization, which is why so many are implementing ESG initiatives.

What Does ESG Mean?

ESG stands for environment, social, and governance. For many organizations, addressing ESG initiatives has become a strategic priority they are focusing on creating more sustainable business models. Each part of ESG strategies should focus on the different criteria that organizations are measured on and how you can focus on making a significant change that can make an impact in each of these areas.

Environmental Strategies

As you create a strategy to address the environmental aspects of your organization, you should consider the following:

• The impact that your organization has on the world and climate
• How can you implement energy-efficient and eco-friendly solutions
• Monitoring carbon emissions, greenhouse gas emissions, and finding ways to reduce pollution

Social Strategies

As you create a strategy to address social conflicts, you should consider the following:

• Policies within your organization that impact your employee’s health and safety
• Implementing work-from-home or hybrid work models to promote employee satisfaction
• How your organization helps different communities, and what CSR initiatives you have
• Ensuring that organizations that you partner with or do business with are environmentally friendly, socially responsible, and have strong values
• Evaluate your organization’s diversity and inclusion policies

Governance Strategies

As you create a governance strategy, you should consider the following:

• How your organization is structured
• Creating groups within your organization that focus on environmental practices and social strategies set in place
• Ensuring that your organization has a set of values that your customers and employees agree with

Financial Institutions with ESG Initiatives Are Set Up for Success

Organizations with strong ESG strategies considering the above criteria set themselves up for success. Businesses and individuals alike are more interested in doing business with organizations making a positive impact on the world. When you demonstrate that you have an ESG strategy, you show that you care about more than just your business but also the world around you.

Learn More

As your organization begins implementing ESG initiatives that will create a positive impact, it is important to ensure that you have sustainable and efficient technology to help support them. Read about how Extreme Networks has been Advancing our Sustainability Footprint and how our solutions can help your financial organization be more responsible and efficient with how you do business.

Learn about how Extreme Networks is making a difference with our 2022 Corporate Social Responsibility Report.

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