EBMOs to scale up their work on Environmental, Social, and Governance issues

In today’s business landscape, sustainability concerns are more pressing than ever. Environmental, Social, and Governance (ESG) performance is increasingly influencing access to finance, investment decisions, and commercial relationships making it a key determinant in the competitiveness of companies. 

From the 1990s to today, regulations and initiatives have reshaped company operations, especially regarding environmental and social responsibilities. Seventy-two of the 122 stock exchanges tracked by the United Nation’s Sustainable Stock Exchanges initiative have published ESG reporting guidance for their listed companies. Additionally, over 2,250 asset managers, with US$80 trillion assets under their control, have committed to the UN-backed Principles for Responsible Investment. The impact of ESG is undeniable.

New regulations and initiatives related to human rights due diligence and sustainability reporting have direct consequences within the countries and regional blocs where they are implemented but will also extend to business globally. This creates a significant challenge: many companies, particularly smaller ones and those in emerging economies, are unprepared for the ESG regulatory tide.

Employer and business membership organizations (EBMOs) are stepping up to guide their members through the major changes ahead. This includes advocating for a conducive policy and regulatory environment so that companies of all sizes are supported, equipped to respond, and remain competitive. EBMOs with expertise on ESG, and their members, will be better prepared to identify risks, and remain resilient in the changing landscape. 

Recognizing the critical need for EBMOs to support their members on ESG, the ILO’s Bureau for Employers’ Activities launched the Leading Employers in Action for Social and Environmental Responsibility (LEADER) programme in March 2024. This initiative builds on earlier work undertaken in Africa and aims to expand these successes. The LEADER programme is also an opportunity to consolidate the existing efforts of EBMOs on related issues.

LEADER will focus on eight emerging economies: Bolivia (Plurinational State of), Eswatini, Honduras, Morocco, Nigeria, the Philippines, the United Republic of Tanzania, and Viet Nam. EBMOs not participating in the programme can also benefit from the materials developed and peer-learning opportunities created. LEADER aims to enhance the capacity of EBMOs to offer ESG related services, become ESG champions through data collection and advocacy, and build networks to bolster training delivery and advocacy. Ultimately, the private sector’s contribution to sustainable development will also be enhanced by leadership of EBMOs on ESG strategies.

The future of business is sustainable. LEADER offers the opportunity for EBMOs to lead the way.
Learn more about the LEADER programme here.