2-3 min reading
In our modern business world, there is more to business success than just profit and financial performance. With growing concerns from consumers over corporate social and environmental responsibility, businesses need to start embracing Environmental, Social, and Governance (ESG) principles. Not only will this help maintain their current customer base but also to attract new business, satisfy employees, and secure investment.
All in all, addressing all aspects of ESG should not be about following a trend, it should be a moral and strategic imperative for businesses looking to thrive and grow in the long run.
Meeting Customer Expectations and Attracting New Business
As sustainability and the declining state of our planet has become an increasing concern, customers have become increasingly conscious of the environmental and social impact of the products and services they choose. We are seeing a shift in consumption patterns, especially for Millenials and Gen Z; when they believe that a company cares about its impact on people and the environment, they are 27% more likely to purchase their products.
By incorporating ESG considerations into business practices, companies can demonstrate their commitment to sustainability and social responsibility, hence winning the trust of consumers. Not only does this help maintain the loyalty of existing customers, but also with attracting new environmentally conscious customers.
Creating a Positive Workplace for Employees
Social and environmental sustainability is a growing concern, not just for consumers, but employees as well. Employees are the backbone of any successful organisation, and caring about their well-being through ESG values is key. The impact of ESG values on employees is clear: employees who are engaged with ESG initiatives feel a sense of purpose that goes beyond their daily responsibilities.
Companies often forget that ESG in the workplace consists of many different aspects, and often zoom in on the environmental aspect. While sustainability in the workplace is important, ESG initiatives in the workplace also include diversity and inclusion, employee well-being, workplace ethics, and community engagement, amongst others.
Creating a sustainable workplace not only boosts employee morale and productivity but also enhances the company’s reputation as an employer of choice. In fact, employees are 11 times more likely to stay loyal to their employees when they see their organisation actively engaged in social responsibility.
By prioritising the welfare of employees through the different ESG pillars, businesses can attract and retain top talent, fostering a positive company culture that aligns with ESG values.
Attracting Investment through ESG Leadership
Besides pressure from governmental regulations and consumer purchasing decisions, businesses are also facing pressure from investors, who are turning their attention to ESG issues. Investors are increasingly considering ESG factors when making business decisions, as they recognise the importance of sustainable and responsible business practices for long-term value creation.
With the global pandemic accelerating the movement towards purposeful and inclusive capitalism, companies that are prioritising ESG are seeing greater success in the long run. As these companies are seen as less risky and more resilient, they are also more attractive investment opportunities.
To attract investment, businesses need to integrate ESG considerations into their corporate strategy and demonstrate a commitment to sustainability and ethical governance.
The Role of Reporting and Recognition
Maintaining a competitive edge over your competitors in today’s world is increasingly important. A smart organisation needs to work hard to not only be seen to be following best practices in all aspects of ESG, but to actually be a leader in the field by creating these standards.
This all begins with reporting on ESG performance, which is crucial for accountability and transparency. It allows all stakeholders, including customers, employees, investors, and regulators, to have concrete data on the company’s ESG progress and to be able to hold it accountable for its commitments.
The Vivid Edge Advantage
Here at Vivid Edge, we understand how important it is to have solutions and technology to help your business achieve your ESG goals. There is no point doing all the work, but not being able to report on your progress. Vivid Edge provides you with cutting-edge technology to do so.
Vivid Edge offers comprehensive solutions to help companies excel in all aspects of ESG. Our technological solutions empower businesses to gain a competitive edge, a financial edge, an environmental edge, and of course, a sustainability edge.
One of the critical challenges in ESG implementation is effectively tracking and reporting progress. Many companies lack the ability to track and report their progress, making achieving their ESG goals harder than it needs to be.
Vivid Edge addresses this challenge with cutting-edge technology solutions that enable seamless monitoring, measurement, and reporting of ESG metrics. We help companies track their environmental goals, align financial decisions with sustainability objectives, and ensure holistic cohesion across all departments.
All in all, through transparent reporting, businesses can demonstrate their commitment to sustainability and position themselves as leaders in the field, with Vivid Edge as a strategic partner.
