Are you looking for a way to not only drive success for your business, but also make a positive impact on the environment and society? Look no further than an Environmental, Social and Governance (ESG) strategy.
This blog, which focuses on ESG factors, can serve as a key new way to create long-term value in your organisation.
But why is it so valuable? Not only can it enhance your sustainability efforts, but it can also give you a competitive edge, attract top talent, increase productivity, and even future-proof your business.
And with the help of a savvy PR agency, you can spread the word about your brand's commitment to CSR (Corporate Social Responsibility) and making a difference.
Top 6 benefits of ESG
Read on to discover the six benefits of implementing an effective ESG strategy.
1. Helps meet sustainability goals
Ireland has made a commitment to sustainability and meeting emissions targets, and in order to achieve these goals, businesses are encouraged to invest in a greener future, through sustainable services, products, and business models.
Each company’s mission should include reducing its environmental impact and being mindful of its carbon footprint. Joining organisations like Techies Go Green is a great way to do this. The collective effort of a large number of companies working towards a common goal of becoming more sustainable not only delivers measurable results, but also encourages collaboration between businesses and develops networks to create long-term value.
2. Gives your company a competitive advantage
Many companies prioritise sustainability in their choice of supplier, and increasingly carbon footprint is a key metric companies use to decide who they want to deal with. In fact, some buyers now rank sustainability higher on the tender evaluation criteria than even cost. They do so because they need to calculate the supply chain impact on their own carbon footprint, so unless you want to lose out on key business opportunities, you need to get your sustainability right.
A PR agency can showcase how your company helps society with its ESG strategy by issuing news releases, setting up feature articles or interviews. These stories are likely to be very influential for prospective customers, investors and employees who are doing due diligence on whether they want to deal with you or not.
3. Improves employee productivity, retention and attraction
In recent years, there has been a significant shift in the mindset of employees. They no longer see a job as just a means to earn a living but as an opportunity to make a difference in the world. They want to work for companies that align with their values and beliefs.
Dr Laura Watkins (2021) recognises how purpose is the deeper reason and the “why” behind the work we do and the roles we take on. She discusses how the pandemic showed people that their work was, “not as meaningful to them as they’d like.”
As a result, companies are now focusing on implementing strong ESG st[AC3] rategies to attract and retain top talent and increase employee productivity. A well-planned ESG strategy can provide a sense of purpose and direction for employees, which can lead to increased motivation and engagement. Employees who feel a strong sense of purpose in their work are more likely to be satisfied with their jobs, and as a result, they are more productive.
If your company is built on strong ethics in terms of ESG objectives, this can be very attractive in terms of your employer brand.
4. Reduces costs
We are facing an uncertain economic future and cost-cutting is a priority for many businesses.
Adopting an ESG strategy can lead to considerable cost savings by increasing efficiency, minimising waste, improving reputation, reducing risk, and enhancing operational efficiency. Implementing energy-efficient practices such as upgrading equipment, using renewable energy sources, and reducing waste can significantly reduce energy consumption and costs. An effective ESG strategy can enhance operational efficiency by streamlining business operations, and reducing costs associated with inefficient processes.
Cutting costs in one area of your business can unlock budget for investment in other key areas, leading to improvements in both internal operations and external services. This not only benefits your employees but also enhances the customer experience.
Effective CSR initiatives can have a big impact on the local community and workforce, leading to positive media coverage that boosts your reputation. With the help of a PR agency, you can pitch these stories to journalists and showcase your company as a champion of social and environmental responsibility.
5. Future proofs your business
Investing in an ESG strategy is a smart move for businesses looking to future proof their operations. Not only can ESG strategies help identify and mitigate risks associated with environmental and social issues, but they can also improve a company's ability to adapt to changing market conditions.
By building a strong reputation for social and environmental responsibility, businesses can attract socially conscious consumers, investors, and employees, and access capital from a wider pool of investors.
The rise of green financing and investing has put sustainability and environmental responsibility at the forefront of investors' agendas. Green finance has become an integral part of investment culture, and its growth continues to surge at a rapid pace.
By embracing ESG principles and investing in sustainable capital projects, companies can create a positive cultural legacy, encourage sustainable operations, biodiversity, and social change, leading to greater investment and improved credit reputation.
Taking a proactive approach to ESG can help businesses future proof themselves for long-term success in an increasingly socially conscious marketplace.
6. Offers great ESG PR opportunities
A well-executed ESG strategy can provide the basis for great PR opportunities which can lead to revenue growth opportunities, new partnerships, and thought leadership in an area that is attracting so much interest and focus right now.
Effective PR, with the help of a specialist agency if needed, can position your business at the heart of the conversation in the media that offers the most reach and influence. It can provide a great opportunity to engage your employees through great internal communications; can improve your stakeholder engagement at investor, government, and community level; and offers great new opportunities to highlight your sustainability value proposition to customers and prospects.
If you are interested in promoting your ESG, do not hesitate to get in touch with us about how we can help your PR! We can help you identify what is newsworthy about what you do, develop a communications plan with lots of creative ideas, create and issue press releases, identify interview opportunities, develop internal and employee communications, and ultimately help you become an influential leader in ESG.
Dr. Watkins, L, Dietzel, V., (2021) ‘The Performance Curve: Maximize Your Potential at Work While Strengthening Your Well-being’, Bloomberg Publishing