An ESG strategy deals with how environmental, social, and governance issues affect your business’s strategies and practices – and ultimately, your company’s value (Crowe.com).
Environmental, Social, and Governance (ESG) strategies were once reserved for the large companies who had to report to shareholders and boards of directors on how they were making the world a better place in their wake. In 2022, however, solid ESG strategies can benefit businesses of all sizes and shapes, from local coffee shops to law firms.
Today, there’s more and more growing public concern over issues such as climate change, limited resources, as well as human rights, and inequalities. More than ever, the public is paying attention to how businesses address these issues and whether their overall impact on a community is a positive one. Local, independent businesses, being so close to the communities they serve while also being much more nimble when it comes to implementing policies, are uniquely positioned to quickly and adeptly incorporate various strategies that can add value to the business and the community, and a return on investment.
By making the sustainable choice now, businesses will ultimately save money in the long run whether through lower energy consumption costs, a reduction in water, or even the act of swapping out paper receipts in favor of email receipts – which will save on paper and ink costs in the future.
With younger generations even more concerned with a company’s overall impact on the world – whether socially or environmentally, a company with a commitment to making a positive impact on a community will typically fare better in terms of being able to attract top talent while also boosting employee motivation, thus resulting in less turnover and higher output.
Businesses who demonstrate how much they care by being a good contributing to the greater good of a community in a meaningful way, are more likely to benefit from stronger community and government relations initiatives as well as more strategic freedom and government support which can look like easier access to grants or even access to key decision-makers within the community.
By focusing on allocating limited capital for long-term sustainability, businesses can avoid “quick fixes” that while initially may appear the cheaper option, ultimately won’t pay off long-term.
Increased Attractiveness to Lenders & Investors
For businesses with an eye on growth, studies have proven that those companies committed to an ESG strategy are viewed more favorably by investors and lenders than their counterparts.