Being, and being seen to be sustainable is a wide-reaching concept.
ESG, which is a relatively new sustainability terminology, stands for environmental, social and governance. These are the three accepted factors that measure how a business cares about its customers, its employees, and its community. Sustainable business practices are important because they help businesses reduce their negative effects on the environment, society, and governance. For example, a business that uses renewable energy sources, treats its workers fairly and follows ethical standards is more sustainable than one that does not. Sustainable business practices can also benefit companies in the long run. It can save on costs, improve reputation, and attract customers and supporters who care about ESG, including those who would otherwise support a more compatible business partner.
As a small business, you should care about sustainability because it’s good for your bottom line. It generates trust. Increasingly, your customers believe it’s the way to make the world a better place. A growing number of them don’t want to use up or ruin the things that they believe we need to live. As a business owner, you probably also want to be fair and responsible to your customers, employees, and community.
Of course, your business needs to be profitable. That’s why the balance of your environmental, social and economic goals is important and making choices that are good for everyone is good for your business. Sustainability is not just a buzzword, it’s a way of working that makes sense.
It most certainly makes sense for your customers and those you care about.
ESG is becoming more and more popular among investors, customers, and regulators. They want to associate with companies that are not only profitable, but also responsible and ethical. Governments (who want to be re-elected) and Regulators have responded and will continue to respond. ESG is not a fixed standard, but rather a set of criteria that can vary depending on the industry, region, and stakeholder. However, some common themes are reducing carbon emissions, promoting diversity and inclusion, and ensuring good governance practices. ESG is not just a nice-to-have, but a must-have for any company that wants to survive and thrive in the 21st century.
This topic is fast becoming a “runaway train”, and it won’t be long before its force becomes unstoppable.
Accross | Sustainable Ethical Services works with micro and small business owners to develop and implement simple, low-cost strategies to capitalise on the sustainable things they already have in place, and to identify and prioritise other easily achievable and affordable activities which can improve their standing with their customers and within their communities.
