ESG is a gift, not a chore

A competitive business is an ethical business

To make sure a business has a competitive edge, CEO’s need to take ESG on board, not just because they have to, but because they want to. Being able to show your business cares about sustainability, the environment and corporate governance will have a positive effect on how your investors, employees and customers view your business, it will also have a positive effect on your bottom line.

Companies that play an active role in ESG strategies are more likely to benefit in the long term. ESG assets will reach an astounding $53 trillion by 2025. Source : Bloomberg

Putting People First. Your talent cares about who they work for, how the company behaves towards them and how it handles its own environmental footprint. Businesses that make real commitments to improve their ESG strategies are likely to gain an advantage in holding onto key employees – something that investors are keen to see when considering who they give their backing to.

ESG performance can help companies both improve employee satisfaction and attract prospective employees. Source : Mercer

Being open and transparent over working practices can boost consumer confidence in a business. Clear ESG reporting on how a business manages its supply chain, customers and logistics will attract more positive pull factors across the board. If a company looks after their employees, it stands to reason that it will treat suppliers in the same way and they will be more willing to work with you.

Everyone cares about sustainability not just investors.

Consumers are more climate-conscious, they care about how things are made, what they are made from and they take time to consider the sustainability of items before parting with their money.

One of the key reasons that investors and financial stakeholders review ESG disclosure is because it gives good insight into the risks a company faces. Source Gartner

ESG is a gift not a chore

Companies will be required to report ESG strategies and results, but they need to want to do that rather than be required to. ESG needs to become part of a company’s mission and identity, something to be proud of rather than to be endured. ESG shows the heart of a company, of course a business needs to be profitable and your bank balance needs to show you are making money, but that can no longer be the heart of your operation, ESG explains a businesses purpose.

ESG shows that CEO’s care about all stakeholders and it delivers on the results that investors want, above and beyond the bottom line.