D&I and ESG Connection

D&I is connected to all three ESG criteria.

Connection between the ‘Social’ criteria and D&I

Social criteria present an opportunity to measure and improve your organisation’s social sustainability and impact, including D&I initiatives.

Connection between the ‘Governance’ criteria and D&I 

Governance is about the way that your organisation is governed and makes decisions, including the composition of your governing bodies such as the Board (and how well represented marginalised groups may be in them).

Connection between the ‘Environmental’ criteria and D&I

Organisations have not made the link between workforce D&I and the environmental criteria in ESG practice as commonly as they have with the other governance and social criteria.  However, there is growing awareness that climate change disproportionately negatively affects women and children, First Nations peoples and migrants and refugees – and organisations have a role to play in minimising their contributions to climate change. ¹ Additionally, research shows that organisations with more diverse boards perform higher in their environmental rating from MSCI (an ESG data provider). So, diversity and inclusion in leadership and boards has a direct link with environmental impacts. ²