Adopting an ESG strategy can be seen as more than just a tick-box exercise or a means of delivering on sustainability messages, and finance leaders must keep an eye out on the impact of ESG data on the business performance.
There are a number of commercial benefits, such as the landscape shifts towards provision of more responsibly sourced products and services.
More strategic sourcing will support top-line growth and discoveries lead to better relationships with governing authorities and businesses with ethical practices at the heart of what they do.Â
Data can also present areas for change within a business, such as energy consumption, whereby new insight into company electricity usage can draw insight into overusage.
ESG is effectively an incentive to look into these factors where businesses could be saving money each year, likewise water consumption and other primary resources.
ESG strategy implementation
Implementing ESG correctly is a qualifying factor of investment, as organisations are preoccupied by environmental and social data as a means of influencing industries to take meaningful actions against climate change and encouraging sourcing of more responsible materials, goods and services.Â
While other organisations will have set the scene for what businesses can achieve, companies newly establishing the presence of sustainability within their businesses can see the requirement of investors as a benefit. The standards and frameworks—and methods of working—supported by investment firms will align with companies leveraging the same.
