Leveraging Quality Management for ESG – Building Sustainability through Integrated Management Systems
10th November 2022
With a focus on ‘quality’ during World Quality Week, this article discusses how quality management can be leveraged to create sustainability and competitive advantage for companies. This year the annual campaign by CQI running between from 7-11 November 2022 focuses on ‘quality conscience’ and that brings into the picture the ongoing drive for ESG (Environmental, Social and Governance) and the need for building responsibility within the business environment. By integrating ESG with company management, corporates are increasingly looking beyond financial criteria to create long-term value.
ESG and ISO Standards
Within the world of finance and investments, ESG, is increasingly becoming the preferred criteria for investors to choose businesses to invest and measure performance. Companies looking to strengthen their ESG strategies can make use of ISO Standards to create management systems towards performance maintenance, continuous improvement, and credibility. ISO standards are widely recognised certifications that can help create a top-down approach to ESG and enable monitoring of important sustainability aspects such as environment, health & safety, wellbeing and quality.
Why do organisations need ISO 9001
ISO 9001 is an internationally recognised standard ensuring corporates integrate quality best practices and build strong management systems to deliver quality. It creates transparency, leadership, and a robust framework for quality management within business. Essentially, ISO 9001 focuses on leadership responsibility for a customer and quality focused approach for business and corporate governance. For certain industries, such as Food & Beverage and consumer goods, it also forms a part of performance criteria to deliver against key ESG issues.
Industries that need ISO 9001 include Tech-based services, Manufacturing, Hospitality, Construction, Engineering, Consumer Goods and Health.
Quality and ESG: How they tie up
Quality management fits in with the ‘G’ or ‘Governance’ pillar of ESG, whereby management systems are created for strategic achievement of environmental and social goals and in creating management oversight for meaningful impacts.
A strong quality management can help the ESG agenda of a firm by –
- Providing structure for management systems to drive business improvement
- Ensure fair and transparent business operations for all stakeholders
- Address risks and identify opportunities
- Create internal structures and external certification and assurance for ESG reporting
- Support profitable and sustainable business
How are organisations are embracing ESG
During my 7 months at Mabbett as an ESG Consultant, I’ve been supporting companies across industries become more resilient and create robust disclosures and reporting through effective ESG strategies. Companies on their ESG journey can use Materiality Assessments and alignment of reporting to global reporting standards such as TCFD, GRI and SASBC to meet regulatory requirements and stakeholder expectations.
At Mabbett, we help companies build their ESG strategies and reporting through our ESG Screening and other ESG Reporting services as well as to develop effective targets and metrics with Net-Zero and SBTi support services.