ESG advantages for companies
Looking for the right equilibrium between financial-economic results, transparency, social interests and the environment without losing your balance
Content:
ESG represents looking for the right equilibrium between financial-economic results, transparency, social interests and the environment without losing your balance. A well-founded ESG or sustainability strategy increasingly benefits companies. Here are some benefits of ESG for companies:
- Competitive advantage: 64% of consumers choose a brand, move to another brand, avoid or boycots a brand because of its stance on social issues, and change purchase behaviour due to the way a brand handles climate change.
- War for talent: 67% of Belgians let their job application choices depend on the employer's ESG policy. The extent to which a company takes action regarding sustainability is becoming more and more crucial for its appeal on the job market. ESG commitment is, in other words, a determining factor of the employer brand.
- Appealing to investors: 87% of investors wonder whether companies are greenwashing their activities in reports, and 82% indicate that their clients ask to take ESG factors into consideration. It is currently a trend among companies to include ESG reporting in earnings reports or in seperate disclosures. Investors and lenders are increasingly drawn to companies that invest in ESG and that use ESG reports to highlight their sustainability efforts.
- Profit through sustainability: ESG does not only make a company more interesting to investors, but it also improves the overall financial performance of the company. Even small efforts regarding sustainability – such as paperless working, recycling or implementing energy-efficient improvements – can improve business performance and ROI. To keep up with ESG programmes, companies must retain important measurement data, such as energy consumption, resource usage and waste use, which can lead to lower energy bills and costs savings in the long run. Companies complying with ESG related regulation face a lower risk of fines, penalties and other company risks, which positively affects the business results.
Implementing the People Sustainability Scan can help companies reap the benefits regarding employee well-being and diversity.
