Elevating social sustainability in the ESG narrative

In the first of a three part series, transformative social impact leader Padma Dayananda explains how the Social component of ESG must be elevated to drive real change - and unlock opportunities.

Global organizations are prioritizing Environmental, Social, and Governance (ESG) goals, focusing extensively on environmental concerns like climate change and net-zero targets. While these are crucial, this intense focus often sidelines broader aspects of the United Nations Sustainable Development Goals (SDGs) like quality education, poverty reduction, and decent work. This narrow approach not only limits impact but also risks missing significant opportunities for sustainable business transformation.

Maslow’s Hierarchy of Needs as a Guide

Maslow’s hierarchy of needs—spanning physiological needs, safety, belonging, esteem, and self-actualization—offers a clear framework for understanding fundamental human requirements. Mapping these layers to the SDGs reveals their inherent interdependence and underscores the importance of balanced prioritization. For example:

• Physiological needs: SDGs such as zero hunger (SDG 2) and clean water and sanitation (SDG 6) are essential for survival and provide the foundation for all other progress.

• Safety: Decent work and economic growth (SDG 8) and reduced inequalities (SDG 10) create the stability necessary for communities to thrive.

• Belonging and esteem: Quality education (SDG 4) and gender equality (SDG 5) foster social inclusion, empowerment, and collective progress.

• Self-actualization: Climate action (SDG 13) and partnerships for the goals (SDG 17) enable societies to strive for long-term sustainability and innovation.

  
  

By viewing the SDGs through Maslow’s lens, it becomes clear that achieving higher-order goals like climate action relies on addressing foundational needs. This amplifies the significance of integrating social sustainability into ESG frameworks.

A socially sustainable business strategy can improve employee engagement, reduce talent shortages, and unlock new market opportunities. Companies that integrate social goals can attract a values-aligned workforce and demonstrate leadership in ethical transformation, which aligns with growing consumer and investor demands for responsible business practices.

Why broader SDGs are overlooked

The focus on climate-related goals stems from the availability of measurable, science-based targets that regulatory bodies mandate and track. Metrics like carbon footprint reduction and energy efficiency are well-defined and quantifiable, making them attractive for corporate and governmental agendas. In contrast, social goals like poverty alleviation or education often lack standardized metrics, creating a perception that they are harder to implement or monitor effectively.

This siloed approach, while expedient, risks unintended consequences. By prioritizing environmental targets, companies may overlook how these efforts interact with social goals. For instance, technology disruptors in sustainability may simultaneously create redundancies in traditional job markets, exacerbating social inequalities.

Case analysis : Impact of driving environmental sustainability by eliminating plastics

All sustainable choices are more expensive. If one chooses to host a child’s birthday party by going eco friendly, just plates and decorations would cost 70% more. So they need to choose between being sustainable or affordable.

Why should sustainability trigger affordability? Let's dive in into plastic, the biggest enemy to sustainability.

In the UK there are 155,000 people directly employed and 500,000 indirectly employed in the plastic industry. Are these 655,000 people kept at the center of this transformation? Are we  re-skilling them at the same rate as we eliminate plastics? Have we invested enough in research to make bioplastics affordable?

Have we looked at our education curriculum to prepare the future workforce to support this single transformation? The subjects they need to focus on? Curriculum upgraded?

 Now that is social sustainability. It's about asking. The three pertinent questions:

• How does a change negatively impact any of the other sustainable development goals.

• Is the corrective action planned and implemented to address the impact?

• Are we doing ethical transformation?

You see similar impacts across multiple industries.  The education and publishing industries are striving to move from paper to digital as part of their digital transformation journey.

Besides costing the livelihood of a across the value chain, it also risks the broadening the literacy divide for those who still struggle with digital access – devices and internet.

The case for integrated Social Sustainability

The triple bottom line framework—focusing on "people, planet, and profit"—emphasizes that sustainable success demands equal consideration of all three dimensions. As Harvard Business School Professor Rebecca Henderson highlights, “Solving the world’s problems presents trillions of dollars’ worth of economic opportunity.” This underscores the untapped potential in addressing interconnected challenges, such as integrating climate action with equitable job creation and access to quality education.

Building a framework for Social Sustainability

To center social sustainability within the ESG framework, companies need to adopt a structured approach:

1. Global applicability: Develop frameworks adaptable across industries and geographies, ensuring universal relevance.

2. Science-based metrics: Create measurable indicators for social impact, akin to those in environmental sustainability.

3. Standardized reporting: Implement consistent methods to monitor, report, and compare progress across social goals. (Refer to article monetizing social impact for one such reporting mechanism)

The path forward

Addressing sustainability goals in isolation risks destabilizing progress across the SDG ecosystem. Maslow’s hierarchy illustrates the need to prioritize foundational elements like education, health, and equity alongside climate action. By broadening the ESG narrative to encompass social sustainability, organizations can drive transformative, ethical, and inclusive growth. This integrated approach positions businesses as leaders in shaping a resilient and equitable global future.

With 23 years of cross-industry expertise, Padma is a transformative social impact leader specializing in digital transformation, business development, and ESG. She excels in leveraging business and technology to propel social sustainability initiatives and build impactful ESG programs, forging strategic partnerships across corporates, public sectors, and non-profits to facilitate major global deals.

As a skilled social value practitioner, Padma transforms CSR efforts into a competitive edge, helping businesses secure substantial public sector contracts. By seamlessly aligning social impact initiatives with overarching business objectives, she guides executive leadership in embedding sustainability into core strategies, achieving equitable outcomes and driving long-term growth. You can find Padma on LinkedIn here.