The Business Case for ESG Strategy

Today, many organizations understand why sustainable transformation is important for our planet, but they often don’t recognize the business benefits, which include cost savings, risk mitigation, and improved brand perception. Increased or new regulations for all of ESG (environmental, social, and governance) are on the horizon and will impact businesses across all sectors and industries worldwide. While the exact details of these regulations are still pending, we highly recommend taking action now to implement a strong ESG strategy, as the benefits of sustainable transformation far outweigh the risks.

At a high level, companies with a comprehensive ESG strategy in place are able to more effectively address macro external pressures, such as climate change and social inequalities, which have the potential to impact business success. On average, the potential business value of climate-related opportunities ($2.1 trillion) is seven times the cost of realizing them ($311 billion). By embedding sustainability as a core value of your business, you benefit all stakeholders: shareholders, customers, employees, partners, our communities, and our planet.

So, what does that mean for your business? In this report, we identify seven ways ESG delivers measurable business value for your organization. Then, we show you how to harness this potential to create an ESG strategy and take action.

By being more efficient with water, reducing power consumption, choosing energy-efficient equipment, and switching to renewable energy resources, companies make big strides not only for the environment but also for the bottom line.