ESG – Why bother?
The issue of Environmental, Social and Governance (ESG) is firmly on the business agenda, but what does it mean and why should you take time out of your busy life as an owner to engage with it? Why bother?
Here’s eight reasons why…
- It makes business sense. Applying the ESG lens to your business will help you assess the risks and opportunities and help your company be more resilient.
- It will help you attract and keep talent. Having a clear ESG story and understanding of the impact it is having will help your recruitment and retention
- It can give you the edge over your competitors. ESG regulation continues to develop and grow and getting ahead of these rules could give you an advantage over your competitors – leading to stronger sales and growing the value of your business.
- It can cut your costs. ESG compliant businesses, especially in the professional services sector, can benefit from lower tariffs and better access to industry frameworks
- It could boost your productivity. Creating a common culture, driven by sustainable values and goals creates a happier workplace and more productive people
- Getting on the front foot with ESG helps give your regulatory freedom. Act now and you can get ahead of regulation changes, letting you stay in control of your business and its strategy.
- It will add to the value of your business. Investors undertaking due diligence will add value to your business based on the evidence you have on your commitment to ESG
- It will improve your access to funding opportunities. We’re seeing evidence of delays in funding from big lenders as businesses fail to meet ESG criteria.
When it comes to the potential sale price of your business, sustainability commitments can add value. Martin Brown CEO of business growth advisory company Elephants Child explains: “If you can prove you live and breathe sustainability, if you’re true to that purpose, it will create and add value. At the SME level, it’s got to be very tangible, in that it’s got to drive sales up and costs down and bring value into the business.”
Please contact us via the form below if you would like to take the first steps to developing your company’s ESG policy. Through our partnership with Elephants Child, you can be assured of some sound pragmatic advice.
Or find out more about how to make progress on ESG in your business via www.elephants-child.co.uk/esg
Guest Article from Elephants Child, June 2023