Written by: parsibagan
ESG (environmental, social, and governance) encompasses various business practices that address waste and climate issues, corporate governance, and human social impact. It has become very important to consumers, investors, and even job applicants. But why is it important for you? Why does your company need ESG consulting? If these are the questions running through your mind, then continue reading and learn about the top 5 reasons why your company absolutely requires ESG solutions.
1.Attracts talent
Most job seekers nowadays do not work just to draw a paycheck. They want to feel appreciated, want to enjoy their job, and wish to create a positive impact. Working for a business that has strong ESG goals is one important factor for job satisfaction, together with evidence that the company indeed follows its stated goals. It has also been seen that if an employee has other options, they will use them if their values and needs are not met in their current job. So, if you want to hire good talent and also want to retain them then ESG solutions is what you need.
2.Attracts lenders and investors
Including ESG reporting in earnings reports has become very popular among businesses. Lenders and investors easily get attracted to those companies that invest in ESG solutions and their ESG disclosures clearly reflect their sustainability efforts. So, if you want to influence the decisions of lenders and investors then you must take ESG seriously.
3.Creates customer loyalty
As per a recent survey, it has been observed that as an outcome of the COVID-19 pandemic most consumers have changed their priorities when it comes to shopping for brands. They are ready to pay a bit more and choose those brands that remain aligned with their value and treat their consumers well. Companies that use ESG consulting can attract and retain more consumers by being transparent and clearly sharing their ESG efforts with the customers.
4.Betters financial performance
By choosing ESG solutions, you can also improve the financial performance of your business. Little efforts taken towards sustainability, like recycling, going paperless, or making some energy-efficient upgrades, can improve the ROI and bottom line of your business.
You can start by tracking key metrics like raw material usage, waste management, and energy consumption. This will eventually pave the way to a reduction in energy bills and cost reductions too. Furthermore, businesses that follow ESG have less exposure to penalties, risks, and fines, and this creates a great positive impact.
5.Better supply chain prospect
Just like investors give importance to ESG, there are companies that are in the search of supply chain partners that give importance to sustainability. Many retail stores, for example, do not stock products made by those companies that have poor ESG performance. Since the supply chains of companies create an impact on the environment, society, and people, companies that give importance to their ESG goals find it easier to partner with those suppliers that have a similar vision.
To Conclude –
If you really want your business to grow, want to attract more loyal customers, lenders, and investors, and also want to improve your overall financial performance, then ESG is something you cannot avoid. So, hire the best ESG consulting firm right away and watch your business succeed more and more with each passing day.
