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Environmental, Social and Governance (ESG) criteria carry more weight than ever for individuals and companies committed to sustainable and ethical practices. In general, ESG criteria go beyond financial metrics in their assessment of company performance, instead focusing on environmental stewardship, social responsibility and corporate governance.
Therefore, a delicate balance must be struck between business success (in the traditional sense) and sustainability. Today, we delve into this balance, exploring the intriguing intersection between these principles and remote work policies that so many businesses now operate intraday.
Curious about the significance of this intersection? Well, according to a 2021 survey by Gartner, 85% of investors considered ESG factors in their investments, highlighting the growing importance of meeting these criteria. When we combine this within modern businesses and startups, especially those seeking investment and going through the fundraising process, you begin to understand the massive importance of being ESG aware.
Being aware includes participating in strategies that can bring positive ESG impact, such as telecommuting configurations. So let's see exactly how these strategies enable companies to implement these ideologies more efficiently and effectively.
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The impact of remote work
Kicking things off with the 'E' of ESG, telecommuting substantially reduces a company's carbon footprint. With less, or in some cases like ours at Bubbles, zero commuting employees, there is a massive drop in greenhouse gas emissions (strictly from commuting). In this perspective, we should look at some statistics from Global workplace analysis.
They claim that if those who could telecommute did so only half the time, the reduction in emissions would be equivalent to taking New York State's entire workforce off the road. The scale of this workforce is largely incomprehensible, so I feel comfortable drawing a parallel here with the incomprehensible environmental benefits of companies that commit to remote or hybrid work policies.
However, to benefit don't just include travel. In an environmental sense, remote working also reduces the need for large office spaces, which means less energy consumption for heating, cooling and lighting.
I want to emphasize that the benefits are not without some challenges. An increased reliance on the digital infrastructure that often occurs for remote working to be a success means that those involved will have a higher consumption of electricity and e-waste. However, this does not mean that this challenge is not manageable. For the most part, companies are able to navigate these challenges by adopting green IT practices, such as using energy-efficient servers and encouraging the recycling of electronic equipment.
The social benefits of remote work
On the social front, telecommuting positively affects job satisfaction and work-life balance, both of which are key components of the 'S' in ESG. Employees gain more flexibility within these work structures, reducing stress and improving mental health. Not to overwhelm you with facts, but according to Tampon in 2020, 98% of remote workers would like to continue working remotely to some extent for the rest of their careers. So there you have it – implementing these strategies within a company will not only make you more ESG-friendly, but benefit the lives of your employees.
Remote work also promotes inclusion and breaks down the boundaries (literally) that were common with in-person workplaces. By removing geographic barriers, companies can access a more diverse talent pool, which is undoubtedly great for company production and growth. This includes creating inclusion for individuals who may have disabilities or caring responsibilities that make traditional office work challenging. The involvement that comes from telecommuting strengthens the social fabric of your company and allows you to have better professionals on your team.
Governance and remote work
In the last letter. In the context of ESG, governance involves implementing and ensuring robust policies, accountability and transparency within a company or organization. Sometimes, remote work setups can struggle with effective communication, so I want to emphasize the importance of the correct remote transition.
This is because telecommuting policies require clear communication (asynchronous or synchronous) and documentation, which, when done well, fundamentally improves governance practices. Staying in touch with team members when they are geographically separated can be done in a number of ways.
This was at the forefront of my mind when I founded Bubbles. I wanted to facilitate effective remote working by capturing crucial discussions and real-time decisions through AI note-taking. I then wanted teammates to be able to quickly follow and line up with quick check-ins or comments. From my perspective, this level of documentation and communication aligns well with ESG goals by promoting ethical decision-making and reducing the risk of miscommunication and oversight.
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Limitations and challenges
Despite the many benefits, remote work is not without RESTRICTIONS. Of course, the potential for employee isolation and the difficulty in building a cohesive company culture can be pervasive in this culture. Take this as a challenge to overcome and invest (financially and emotionally) in team building activities and ways to create an inclusive digital workplace where people feel that sense of community.
The digital divide can also be challenging. Not all employees have access to high-speed Internet or a conducive work environment at home. Understand this and aim to address these disparities. That's why recruiting and onboarding are critical in order to get the most out of these efforts.
CONCLUSION
Remote work policies are a powerful catalyst for driving positive ESG impact and should be viewed in this light rather than as a trend. I hope that by sharing this, I have opened your eyes to the importance of navigating evolving work landscapes and leveraging them for ESG and company benefit.