Some believe that ESG is something that only large companies can benefit from. However, utilising ESG advisory and consulting services, any company – big or small – can implement the criteria, and it will automatically begin reaping the benefits. Utilising ESG advisory and consulting services, this Read on and find out how it can help you as well.
What Exactly Is ESG?
ESG is short for Environmental, Social, and Governance, a set of rules you need to follow to make your company more environmentally friendly. ESG is a strategy that helps you gather data on your sustainability efforts. The metrics will help you determine what your environmental, social, and governmental impact is.
Main Benefits of Incorporating ESG
There are several reasons why you may want to incorporate ESG in your company strategy, including but not limited to the following:
1. It Offers a Competitive Advantage
By incorporating an ESG structure, you will be more successful in increasing brand loyalty and boosting your overall brand recognition. More and more people are showing their preferences for sustainability, which is why they will look at your efforts in that direction. Company owners that adhere to ESG criteria are more likely to make sales compared to those that prefer to take the easy way out.
2. It Enables Cost Reduction
By adhering to an ESG program, you can track certain crucial metrics such as how much water or energy you use, how much waste shipping you have, how much the product treatment costs, or how much raw material you use. This ability to see exactly how much you are consuming will give you better control of your operational costs – therefore, reducing your costs.
3. It Attracts Investors and Lenders
Studies show that companies adopting the ESG program have more chances of attracting lenders and investors. With the growing response of the public on the climate change matter, more and more investors are giving priority to companies adopting sustainability programs. By looking at the data of your ESG project, they will be able to determine whether you are worth a potential investment or not.
4. It Increases Supply Chain
Similar to how investors are looking into ESG, suppliers are also searching for partners that are embracing sustainability. For instance, if your products have a low ESG rating, the suppliers may decide against stocking what you have to offer. As supply chains have more and more of an impact on the environment, more suppliers will be looking into your ESG performance.
5. It Attracts and Retains Talent
Nowadays, people are no longer simply looking for a job to give them a paycheck. They want a job that they like, and they want to feel like their impact on the world is a positive one. If you have strong ESG performance and goals, their employee satisfaction will increase and they will be more likely to stay for the rest of the trip.
The Bottom Line
Good ESG enables company growth, which is essential to invest in such a program. It doesn’t matter if you are a large company or a small one – sustainability is where the future is. So, you need to keep a close eye on your strategy.