ESG (Environmental, Social and Corporate Governance) has become an increasingly important topic today, with many technology companies having felt their fair share of pressure into adopting more ESG-forward practices and operational changes within their organizations.
As such, SLASSCOM recently partnered with PwC Sri Lanka to conduct an extensive survey of the current position within the IT/BPM industry in terms of ESG. The main aim was to help organizations in the sector successfully formulate an appropriate industry strategy and agenda to transit to ESG.
The report showed that currently only 30% were implementing ESG activities with the balance 70% being in the initial stages or in not having started their ESG journey. A majority of SME companies had not taken any steps into moving towards ESG, whilst most medium and large companies have begun implementing ESG activities for some time.
Of these, 26% had an ESG strategy, with only 10% of them being aligned with their business strategy. Whilst 36% of the ESG strategy of large firm’s was distinct from their business strategy, 14% had embedded ESG into their core operations and had a robust data collection process. 14% reported regularly on ESG with 6% using global standards.
Top 3 drivers for companies were moral and ethical reasons, aligned with corporate values and reputation. Customers, regulators and investors posed a high influence. Key topics comprised of employee engagement, diversity & inclusion and information security. The top 3 environment initiatives of more than 50% were in setting goals and targets to become energy efficient, measure energy consumption, follow effective approaches to manage water and utilizing renewable sources to fulfill energy requirements. 16% were already measuring their e-waste, whilst 43% were considering to do so in future, with a few having partnered with certified vendors.
55% companies were looking to implement waste management initiatives with regards to paper, focusing on plastic and e-waste management. A majority see infrastructure on cloud as an opportunity for now and the future. More than 70% of companies have policies to address customer data security and privacy, conduct regular employee training programs, and getting employees involved in organization’s decision-making processes backed by inclusive & diversified recruitment practices.
Given these findings, SLASSCOM has put in place a set of comprehensive plans that concentrate on knowledge-sharing, capacity building and awareness-creation. SLASSCOM will also work on encouraging companies to implement ESG activities by helping them measure and monitor ESG indicators, promote certifications and assurance endorsements related to ESG and brand Sri Lanka as the leading IT/BPM destination for ESG that is advancing the Sustainable Development Goals.
Jehan Perinpanayagam, Vice Chairman-SLASSCOM stated, ”this report provides vital information of where we stand as an industry, the priorities, and the current levels of understanding and provides a useful guide to next steps. As we institutionalize sustainability best practices across our industry, we will make a significant difference to our planet and people whilst strengthening the attractiveness of Sri Lanka’s IT / BPM offering amongst our international partners and clients.”
Zahra Cader, ESG Leader and Director for PwC Sri Lanka added, “ESG is about making a difference, for your business and our world. It’s delivering sustained outcomes with solutions that drive value, fuel growth, strengthening our environment and societies and leading business responsively and responsibly to build trust with customers, employees and stakeholders. We are glad to partner with SLASSCOM on this ESG baseline survey to understand current practices and future plans in this space.”