Prioritizing ESG in Nonprofit Operations

Nonprofit Leaders,

Do you wonder how you can prioritize environmental, social, and governance (ESG) factors while carrying out the organization’s mission? Start with the basics.

Environmental factors: Reduce carbon footprint by prioritizing energy efficiency in place-based locations, promoting sustainable commuting methods for staff (or allowing employees to work remotely), reducing the need for air travel, eliminating waste and water usage, and recycling, to name a few.

Social factors: Fiercely promote diversity, equity, and inclusion (DEI) throughout the organization, starting with governance and policy decisions, with a focus on programs and services, and with consideration for—and conversations with—all stakeholders involved, but especially the communities served. Additionally, consider how valuable the voices of those with lived experience will be at all levels, from the Board to the community. At a critical time when several states and academics are forming anti-DEI coalitions, think of ways to strengthen government alliances and leverage your donor base in support of DEI initiatives.

Governance factors: Revisit governance policies, strategic plans, and practices with the Board and Leadership. Look at Board and donor composition and assess external partnerships and fundraising practices to avoid misalignment with mission, values, and interests. Also, implement term limits to refresh your Board and promote innovative thinking around the “E” and “S” factors when developing policies.

Ultimately, “walking the talk” in ESG will likely attract Board members, senior leadership, external partners, donors, volunteers, staff members and other stakeholders whose values around sustainability and social responsibility are in alignment. The potential result: more impactful mission execution and continued growth in the long run.