Improve the company’s reputation
As this suggests that the company has adopted a transparent plan that focuses on helping the environment, supporting diversity and equal opportunities in the workplace, as well as ensuring the most ethical business practices and decisions are adopted, it can significantly raise your company’s reputation.
Through initiatives that help in reducing waste and the amount of materials used, in addition to actively reducing energy costs through switching to LED lighting for example, ESG can also help a business minimise its running costs.
Attract employees and customers
Many employees prefer to associate themselves with companies which encourage and promote a diverse and inclusive workplace through employee support programmes that cater for mental health and wellbeing, together with fostering improved work/life balance. A significant proportion of current employees also choose to associate with companies that are prominently eco-conscious.
A study found that over 70% of customers are willing to pay an additional 5% for a greener product that meets the same standards as the non-green alternatives that are available. As a result, this can attract even more customers to the business, raising its brand equity, along with its profit.
Investors are also often attracted to companies with a strong ESG. According to a survey conducted by Naxitis, an investment management firm, a global average of 71% of investors stated that they want to make a positive impact with their investments.
Thus, taking into consideration the ESG concerns of your company can greatly enhance its position in the market, compared to that of competitors, while eliminating the possibility of negative perceptions towards the company and its brand.
Are you a senior executive looking to further develop your career and effectively contribute to your company’s ESG? Enrol with us today on a 100% online Environmental, Social and Governance course.