In our latest installment of Ask the Expert, brought to you by KPA, we hear from Jade Brainard, Senior Director of Product Management at KPA, about how to implement effective environmental, social, and governance (ESG) programs.
Q: For companies that are just getting started with their ESG initiatives, what are the first things they need to do?
The first step in any successful ESG program is conducting a thorough materiality assessment. This involves identifying which ESG factors are most relevant to your business and stakeholders. To start, map your company’s environmental impact, social relationships, and governance structure. This includes analyzing energy usage, waste management, workplace practices, supply chain relationships, and decision-making processes.
The next step is to establish baseline measurements for your key ESG metrics. You can’t improve what you don’t measure, so collect data on current performance levels. This might include tracking carbon emissions, water usage, workforce diversity statistics, and board composition. At KPA, we’ve seen how powerful centralized EHS and ESG data management can be—our platform helps organizations streamline this process by synchronizing company-wide energy, supply chain, and employee targets in one comprehensive dashboard.
It’s also important to engage with stakeholders early in the process to understand their ESG-related concerns and expectations. Their input will help prioritize initiatives and ensure your efforts align with stakeholder values. Modern ESG management requires sophisticated tools to capture and analyze this feedback effectively—something we’ve built into KPA Flex, our software solution, to help companies make data-driven decisions.
Q: What’s the best way to balance ESG initiatives with company productivity and profitability?
One common misconception is that ESG initiatives conflict with productivity and profitability. In reality, well-designed ESG programs can enhance your company’s performance. The key is to integrate ESG initiatives into your existing business strategy (rather than treating them as separate entities).
For example, energy efficiency programs can simultaneously reduce environmental impact and operating costs. Our Scope 1-2-3 CO2 accounting capabilities help companies measure their full GHG emissions footprint, identifying opportunities for both environmental and cost improvements. Investing in employee well-being and development can improve retention rates and productivity. Strong governance practices can help manage risks.
To maintain this balance, establish clear metrics for both ESG performance and business outcomes. Use data-driven decision-making to evaluate initiatives based on their total impact—both financial and non-financial. This will help you to prioritize projects and allocate resources effectively.
Q: What are the best ways to ensure engagement with ESG initiatives throughout your organization?
Successful ESG programs require buy-in at all levels of the organization. Start by securing visible commitment from top leadership. When executives consistently communicate the importance of ESG and demonstrate its integration into decision-making, employees take notice.
Create clear connections between individual roles and ESG goals. Help employees understand how their daily work contributes to the company’s ESG objectives. Provide training and resources to build capacity for ESG implementation across departments.
Establish incentive structures that reward ESG performance. This could include incorporating your ESG metrics into performance reviews or recognition programs to highlight teams who make contributions to your ESG initiatives.
Regular communication is essential. Share updates on ESG progress, celebrate successes, and maintain dialogue about challenges and opportunities. Create channels for employees to provide feedback and suggestions for improvement. This two-way communication helps maintain momentum and identifies areas for enhancement.
Looking ahead
ESG isn’t just about compliance or risk management—it’s about building a resilient, sustainable business that creates value for all stakeholders.
Remember that ESG is a journey, not a destination. Start with foundational elements, build momentum through early wins, and continuously evolve your approach based on experience and changing stakeholder expectations. With the right combination of commitment, careful execution, and robust tools, organizations can turn their ESG aspirations into measurable achievements that benefit both business and society.
Jade Brainard is the Product Director for KPA Flex software solutions. She has been working with KPA products for over 14 years with a focus on providing turn-key safety management software solutions for KPA customers. She works closely with many types of organizations, including construction, energy, manufacturing, and insurance, to understand how technology can be leveraged to effectively manage safety, reduce risk, and stay compliant with an ever-evolving regulatory environment.