ESG thought leadership tends to be dominated by renewable energy firms and conservation think tanks. But what about executives in other industries?
In this article, we explore five key industries where ESG thought leadership is urgently needed to advance net-zero targets, protect reputations, and provide a competitive edge.
Information technology is one of the largest but most destructive industries on our planet thanks in part to the production and processing of data centres.
Not only are they responsible for 1% of the world's energy use, but they account for around 3% of its global emissions.
They also frequently discard resources and obsolete hardware and use over 600 billion gallons of water annually.
When you consider that global data doubles every three years, so does the need for more capacity, compounding the impact data centres have over time.
Despite organisations pledging to power operations completely with renewable energy in the future, realistically, leaders have to do more to catalyse change sooner.
From the smallest of startups to the largest of corporates, ESG thought leaders must establish a vision where sustainability is a core value. Not just a long-term objective.
Every decision should serve the best interests of sustainability, and every departure should become an immediate focus of organisational change.
Leaders should regularly report on progress across social media, media coverage, and events to influence others to make improvements themselves.
Even if it takes time to eradicate bad practices, transparency can be monumental in improving how audiences perceive thought leaders, their businesses, and their industry.
In the past, leaders might have avoided drawing attention to themselves out of fear of attracting regulators.
But with governments pressured to meet net-zero targets, reports indicate that regulatory scrutiny will rise in the coming years regardless of what leaders do or say.
By moving away from what is a traditionally siloed industry, lawyers, particularly those working in corporate, environmental, or compliance law, have the power to advocate for policies that make sustainable practices a legal obligation.
On a much smaller scale, lawyers can help companies invest more responsibly by identifying any potential risks that might attract regulatory scrutiny.
They can also encourage other lawyers to draft contracts that push eco-friendly operations, particularly in industries that are frequent sustainability offenders.
For instance, law firms can often be vital for the fossil fuel industry, where they protect their client's reputation's and lobby policymakers.
However, these lawyers also play a crucial role in helping to mitigate the environmental impact of these companies, such as by influencing funding for transformative technologies like carbon capture.
As one of the most highly trusted industries, there are no limits to the influence lawyers can have.
Agriculture is one of the most pressured industries in the world.
Land shortages.
Unrealistic supply quotas.
An aging workforce.
Worsening weather conditions.
These are all huge problems.
Yet, concern for sustainability is often the least of the industry’s worries, leading to pesticide pollution and destructive land clearing, which only prioritise profits.
A strong step toward sustainability would involve more ESG thought leadership, showing accountability for the industry's shortcomings, educating farmers on regenerative practices, and advocating for more sustainable policies.
Moreover, ag-tech has long been touted as a solution to the industry’s problems yet hindered by a lack of trust, credibility, and funding.
This is where thought leaders can make a huge difference by engaging key audiences, like investors, to help commercialise promising technologies and encourage widespread adoption among older, less receptive farmers.
The construction industry is an obvious inclusion here.
It consumes a vast number of natural resources, contributing up to 6.3 billion tonnes of greenhouse gas emissions annually.
That said, the industry is gradually changing.
Digital technologies like Building Information Modeling are improving planning and resource management.
Sustainable materials such as cross-laminated timber, recycled steel, and hempcrete are more regularly used.
Companies are increasingly prioritising renewable energy in new builds.
However, there's still a misconception that the industry hasn't changed, which is something thought leadership would help with.
By highlighting successful, scalable projects, thought leaders can demonstrate the viability of green building practices, setting themselves apart from their peers and inspiring others in the industry to follow suit.
Moreover, in many parts of the world, there's still not enough policy enforcing sustainable practices as a requirement rather than an option. So, this should be a focus, too.
While other industries tend to focus on environmental concerns, the finance sector faces a different ESG challenge, the socio-cultural hurdles it faces.
Particularly when it comes to diversity and inclusion, it’s not uncommon to see a boardroom dominated by white men.
Meanwhile, stressful environments and poor mental health are profound too, with work-life balance often being non-existent.
This is partly why up to one-third of professionals are considering an exit from their roles.
Leaders should consider sharing success stories highlighting the impact of diversity within their workplace to encourage more equitable hiring and promotion practices.
They can also highlight their advocacy for mental health initiatives and support, not just for Mental Health Week but consistently, all the time.
They should spotlight the detrimental impacts of a poor work-life balance and commit to improvement to earn the trust of their employees.
Of course, any of this thought leadership must be prefaced with real action.
But over time, leaders can benefit hugely by improving productivity and influencing wider industry change.
We recently launched an ESG thought leadership business unit to specialise in ESG campaigns. You can read about it here.