ESG must become a proper subject at school

Knowledge being the foundation of ESG

The world around us is changing, that's a given. Today we focus on fintech, metaverse, crypto-currencies, gig economy ánd ESG. ESG is everywhere. The leading British weekly magazine 'The Economist' published a special edition on ESG this summer, the young and influential climate activist Greta Thunberg published a new book on the state of the climate and this year's episode of 'Zomergasten' with the chief economist of ABN Amro was all about sustainable finance and a sustainable future. But what about PwC? Not only do we help our clients with ESG services such as reporting, assurance, strategy and transformation, but we also have an extensive range of ESG training courses through the ESG Upskilling Hub.

If you really want to understand ESG, you simply have to gain a lot of knowledge. That's the foundational level. My ESG journey started with gaining knowledge about 'sustainable finance regulation'. What appeared to be the case? I knew less about the climate than I thought. Since that time, at least four years ago now, I have been focusing on the importance of ESG and I am still learning each day.

Speeding up? Don't create a five-year plan

Clients often ask me, "Where should I start?" and "What is our first step? These are logical questions because you don't know what you don't know. My advice? The complexity is so great that "just" starting is the most important thing. Of course we need to set learning goals and find training courses that match these learning goals, but an overall plan for the coming years is often too complex to complete. Partly because different target groups simply have different learning goals. So don't create a five-year plan, but keep the momentum going by starting and looking at what is needed per phase.

Awareness and engagement

Awareness and engagement are always important, within any phase of transformation. Make sure the entire company - meaning really everyone within the organization - understands the basic elements of ESG and feels committed to making the necessary change. From there, continue building. Only then is it possible to integrate ESG into the organization's strategy.

The other day I watched the movie "Don't Look Up," with Leonardo Dicaprio and Jennifer Lawrence as astronomers trying to warn the world of an impending disaster that will destroy planet Earth. Their cry for help is not heard. There is laughter, at them as persons and at the message with which they seek to reach the general public. I see that happening now, to some extent, as well.

We see the heavy rains, the floods, the heat and the extreme drought, but turn our understanding of the situation into limited actions on a daily basis. The impact of global warming often goes beyond what we can imagine. Understanding what we can do to save our beautiful planet and to keep organizations future-proof in this reality, requires broad knowledge and understanding of the various sectors and the technological and regulatory developments that affect our planet and, therefore, our businesses.

How the metaverse can support ESG

When dealing with social and governance issues - the 'S' and the 'G' from ESG - we generally need a different approach to climate in terms of education. These topics are not as strongly connected to science as the environment and require us to step into the shoes of others. The Danish school lessons on "empathy" are an example, but there are more options.

Within the PwC network, for example, an impressive training has been developed in which you can be virtually present at a conversation between colleagues via the metaverse. A conversation where one takes credit for client work and gets promoted based on that, and the other is left disillusioned. As I watch the conversation in the metaverse as "fly on the wall," I hear the thoughts of the person who misses out on the promotion. This was poignant because it magnifies and provides insight into prejudice and cultural differences.

This type of training on diversity and inclusion has more impact than just a piece of text on the importance of diversity. To me, it was "upskilling" in practice: both in terms of "Social" and metaverse.

The most common mistake made? Not starting

Whether it is the 'E', the 'S' or the 'G', it is clear that the pressures of society, government, the state of our planet and the growing social interest mean that we must take action now. This starts with facts and knowledge. If it is up to me, it starts with ESG as a subject in school. Because education and training are essential if we want to better integrate ESG into our daily activities, get everyone on board, and integrate ESG into organizations in a smart and strategic way.

The most common mistake? Not starting. And after that? Thinking that everyone needs to become an expert on every ESG topic. Firstly, that is unnecessary and secondly, impossible. Getting started is the most important thing. In the workplace and at school. Rather today than tomorrow.