EY Sustainability Matters

Why businesses are measuring social factors as part of their ESG performance

Jun 17, 2022

The podcast explores the increasing importance of social factors in business success, including diversity and inclusion. It discusses the challenges of measuring social impact and the need for reliable data. The private sector leads in developing social impact reporting strategies. Bank of America emphasizes the importance of transparency in social impact measurement. Collaboration and public-private partnerships are key in measuring social factors for health outcomes and establishing globally aligned standards for ESG reporting.

21:09

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Quick takeaways

Investors and stakeholders are placing a greater emphasis on the social aspects of ESG, as it directly affects talent retention, recruitment, and overall reputation.

Transparency and reporting on social metrics, such as diversity, training, and health and safety, are essential for organizations to meet the expectations of investors and individuals.

Deep dives

The growing importance of the 'S' in ESG

The social dimension of environmental social governance (ESG) is gaining attention and becoming increasingly vital. Companies must focus on social factors like diversity, inclusion, and community impact to drive business success. Investors and stakeholders are placing a greater emphasis on the social aspects of ESG, as it directly affects talent retention, recruitment, and overall reputation. Transparency and reporting on social metrics, such as diversity, training, and health and safety, are essential for organizations to meet the expectations of investors and individuals.

Introduction

2min

The Importance of the Social Aspect in ESG

6min

The Role of the Private Sector in Measuring Social Impact and Reporting on Progress

2min

Bank of America's Approach to Social Impact Measurement and the Importance of Transparency

2min

Measuring Social Factors and Collaboration for Long-Term Impact

8min

Environmental, social and governance (ESG) is quickly becoming mainstream, but corporates may find it difficult to tackle ESG with siloed efforts toward E, S and G. As more organizations prioritize human capital, racial equity and talent development, a new focus on the S — the social factors within ESG — is beginning to take shape. But how are enterprises responding to these challenges, and what can be said about the current state of transparency and measurement when it comes to reporting on these social factors?

In this episode, Bruno Sarda, Climate Change and Sustainability Services Partner at Ernst & Young LLP and Senior Manager Lucy Godshall are joined by Emily Bayley, Head of ESG, Private Sector at the World Economic Forum (WEF), and Ebony Thomas, Racial Equality and Economic Opportunity Executive at Bank of America. They discuss the focus that employees and institutional investors are placing on diversity, inclusivity, training, and health and safety. Finally, the importance of corporate culture and the potential impact on the bottom line.

Key takeaways include:

The social factors in ESG are likely to become more important to investors and stakeholders.
A strong focus on social factors can help to retain talented employees and subsequently have a direct impact on an organization’s bottom line.
Organizations with strong social credentials will likely be better positioned to weather difficult times and business conditions.
Stakeholders are looking for social metrics to be included in nonfinancial disclosures to help better measure and compare performance.
The global business community is collaborating with public and private bodies to develop new metrics.

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EY Sustainability Matters

Why businesses are measuring social factors as part of their ESG performance

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The growing importance of the 'S' in ESG

Investor demand for social impact measurement

Improving transparency and measurement of social impact

Remember Everything You Learn from Podcasts