Once a corporate ‘nice to have’, sustainability is now a commercial as much as a moral imperative. Sustainability is big business - for SMEs as much as the FTSE 250.
Global ESG (environmental, social, governance) assets are on track to exceed $50 trillion by 2025*. That’s a staggering one third of all assets under management globally.
“The pandemic and the global race to net zero carbon emissions have put ESG criteria into orbit – from niche to mainstream to mandatory”, states Adeline Diab, Head of ESG and Thematic Investing EMEA & APAC at Bloomberg Intelligence.
Progressive business leaders have long realised that sustainability is much more than a compliance exercise. Brands focusing on strong ESG practices drive innovation, value and brand loyalty which in turn leads to higher revenues, profits and increased ability to attract investment.
And if that wasn’t enough, it also positively impacts brand perception, customer satisfaction, not to mention employee recruitment and retention. That’s a lot.
Don’t just take our word for it. According to a recent research paper from Moore Global “ESG adopters” experienced:
9.7% sales growth (2X the “laggards”)
9.1% profit growth
11% headcount growth
86% reported enhanced brand perception with customers
83% reported improved customer retention
84% reported increased access to investment
The evidence for embracing sustainability and wider ESG initiatives as a key part of your business growth strategy is compelling. So what’s holding us back?
Having spent time co-leading a sustainability team for an event industry think tank, I’m in no doubt of the ambition of the sector to effect real change. But a major obstacle to progress appears to be the sheer volume of information available, which may make knowing where to start feel daunting and overwhelming.
The topic is hotly debated in a plethora of subgroups, committees and association forums – all supremely well intentioned – but in the end adding to the noise and confusion.
But, standing still on sustainability is not an option – the long term prosperity of your business depends on it. Here’s six, simple, pragmatic steps you can implement immediately:
1. Be honest and transparent about where you are today
2. Audit current performance, measure progress
3. Start small; set achievable milestones and realistic deadlines
4. Empower your employees to initiate and drive change
5. Openly celebrate, communicate & reward success
6. Don’t be afraid to ask for outside help
The road to sustainability nirvana is long, bumpy and never fully realised - there’s always more to do. However, reframing our viewpoint from ‘challenge’ to ‘opportunity’ will boost our chances of success. When we are forced to look at a situation with fresh eyes, we come up with inventive and often surprising solutions. We get wiser as a result of new-found abilities and broaden our range of experience. Challenges force us to realise our greatest potential. Bringing our teams and our customers with us on that journey will accelerate both personal rewards and deliver tangible business benefits.
What are we waiting for? Let’s get started on delivering the triple bottom line: People, Profit & Planet.
*source: Bloomberg International
Comments