Advantages of an ESG focused approach
The health crisis has highlighted the importance of adopting socially responsible and environmentally friendly behavior. Today, a growing number of companies, administrations, associations and, in general, organizations, seem ready to strengthen their ESG approach.
Will a company have to adopt an ESG approach to exist in the future?
In any case, it will be difficult to turn a deaf ear in the face of growing citizen concerns, whether on the environmental, social or ethical levels. Adopting an ESG approach also has many advantages, both as a tool for rationalizing costs, economic development, building loyalty among stakeholders (employees, customers, suppliers, etc.) and therefore performance.
What are the advantages of an ESG focused approach for a company?
It is a particularly effective lever for economic development. By reinforcing its brand image, an ESG approach allows it to stand out from the competition.
Opting for an eco-responsible approach can also be a formidable tool for rationalizing costs. By adopting certain eco-gestures, a company can achieve valuable economies of scale in the long term: reduction of expenses related to energy, transport, plastic or paper wastes.
In the managerial field, adopting an ESG approach is an undeniable asset for developing one's employer brand and attracting new "talents". According to an Ipsos barometer for Boston Consulting Group, nearly 76% of young graduates now consider it necessary for their position to be in line with their values.
Finally, as the Covid crisis proved, a "pro-active ESG company" is more resilient in the face of crisis situations. Thanks to a mindset and values resolutely focused on trust and empowerment of its employees, and on the economic utility it owes to its customers, it is better positioned to manage process reorganizations.
Where to start: First, by assessing where your organization stands. Our ESG Readiness check may help: www.stratesgy.com/readiness