The Business Case for Integrating ESG
Niekerk, Gary ; Fallender, Suzanne; Zeller, Elisabeth
(Intel Corporation, Santa Clara, CA)
ESG (Environmental, Social and Governance) performance indicators and metrics have been used for several years by socially minded investors to make investment decisions; however, companies have had a difficult time applying similar metrics for internal business decisions that go beyond traditional ROI. Intel developed a framework to review our environmental, social and governance activities and practices in terms of their impact along four main business dimensions: (1) Risk Management: Protecting our license to operate, maintaining constructive relationships with local communities, and mitigating risk and promoting responsibility throughout our supply chain; (2) Operations: Building a strong talent pipeline, increasing employee engagement, and achieving cost savings and greater efficiency through sustainable business practices; (3) Revenue: Contributing to growth and product innovation; and (4) Brand: Enhancing our reputation and goodwill with stakeholders and becoming a trusted partner. This framework provides Intel a method of evaluating and describing the various ways in which our integrated approach to ESG factors creates value for Intel; by making decisions that optimize long-term shareholder value and effectively articulate internal and external value generated from our activities.