Brand ESG goals are nothing new, but there has been some rampant misuse of ESG funds and a deterioration of the phrase as a result. However, ESG is a powerful way to access commercial benefits when included in a business strategy. Of course, with such a large fund, businesses of all sizes and pedigrees are chasing those sweet green dollars, sometimes at their own expense.
So, what can your business do to access the benefits offered by ESG programs? There are a few ways to go about it in a legal and satisfactory way. Not all will apply, and not everything is covered here. However, from targeting goals to audience research, here are some suggestions.
Define What the Goals Are
Environmental, Social and Governance (ESG) goals aren’t inherently bad, but they are misused as companies chase the huge advantages available. The video games industry is a perfect example where ESG has gone off the rails at the expense of consumer satisfaction and company implosion! Yet even something as simple as hiring solar maintenance services for clean energy sourcing can help align specific eco goals that allow access to ESG benefits.
Make Brand ESG Goals Specific
A Grant Thornton survey found that only 43% of medium-sized UK businesses have sustainability goals. Your business could be missing out on vital funding without a clear ESG plan to meet specific targets. Whether E, S, G, or all goals will help a company get there:
- Conduct a baseline assessment of what the current ESG priorities are.
- Set SMART ESG goals that align with the overall corporate strategy.
- Identify metrics that can be used alongside KPIs to measure success.
Align them with Business Strengths
Any goals, not just ESG targets, should be crafted around the specific strengths of a business. If not, a corporate strategy could fail miserably as executives and managers chase unattainable goals. It helps to figure out the core competencies of a company’s staff and what the organisation does and can offer. From there, ESG policies can be worked into a refined strategy moving forward, even if it means making drastic changes to the existing corporate structure.
Focus on Issues Relevant to the Sector
Further afield, a business can be part of a group of companies working towards a common goal, or in partnerships within a sector. Materiality matters, as such, become a core part of the ESG plans of a business and its partners. As part of corporate restructuring, it may be necessary to align ESG initiatives with the matters most relevant to the sector as a whole. Alliances and partnerships are much easier this way, while everyone benefits from a higher ESG score.
Integrate Brand ESG Goals into Operations
There are many stories of both success and failure within corporate governance initiatives, and the best ones work to incorporate brand ESG goals into core operations. With the global ESG fund worth over $3 trillion, it is in any company’s best interests to work towards ESG targets.
Embrace sustainable practices
It is essential to adopt eco-friendly practices such as emission reduction, renewable energy and waste reduction is vital for meeting specific environmental ESG policies for better business.
Create a more diverse workplace
DEI initiatives can, when run well, improve employee engagement and attract top-tier talent. However, care must be taken to keep business running via meritocracy rather than exclusion.
Ensure an ethical supply chain
Labour practices are not exactly sterling in most countries. Ethical and fair treatment of employees and anyone in the supply will help a business meet social and governance targets.
Integrating ESG goals into operation is essential for numerous reasons. These include better brand reputation, but also attracting investors and mitigating risks. With a proactive approach towards ESG issues, your business can also gain an edge via long-term sustainability.
Stay Transparent with Your Efforts
Transparency in modern business is somewhat elusive these days, as the world’s biggest companies are almost completely opaque. Google, Amazon and Apple are perfect examples. While they state what they think the public wants to hear, they contradict themselves almost every time. But we must digress, as these companies don’t need ESG funding like others do. Openness and honesty will help raise your ESG score while attracting the target audience.
Don’t Promise What You Can’t Deliver
One of the key parts of modern business is reliability, and most companies are driven to produce results for their clients and customers. However, it is also common for companies to overpromise and underdeliver. This never works out well, and a bad review on the web is there forever. If you state a goal specific to an ESG policy in a re-evaluated company mission, then ensure your business is primed to meet those goals, or you will lose access to ESG funding.
Use Brand ESG Goals that Audiences Expect
Recent data suggest that 82% of customers prefer to engage with companies whose values align with theirs. ESG goals such as ethical supply sourcing and diverse recruitment can be powerful drivers for attracting consumers likely to buy, but only when directed correctly:
- Understand the target market’s ESG priorities with trend analysis and research.
- Identify the material ESG goals unique to your business and the target audience.
- Embed ESG data into communications, global report framework and future incentives.
Use These Plans to Drive Innovation
The organisations that stick around are the ones dedicated to adaptation and innovation. ESG can be a prime catalyst for making changes that benefit the business, sector and market alike. ESG policies can also be used to future-proof a company, as making necessary changes helps meet incoming regulations and changing market demands. As such, an ESG plan isn’t something to be shunned but embraced as an opportunity to positively impact the world.
Summary
Defining goals beforehand will help brand ESG goals become part of the company culture over time instead of just a buzzphrase. Embracing sustainability, DEI programs and ethical sourcing are essential for integrating ESG goals into company operations. A commitment to an ESG plan can also help businesses drive innovation for present success and future regulations when they arise. All of these help companies establish brand recognition, trust and loyal engagement.