Your business, like every business, is interconnected with environmental, social, and governance (ESG) concerns. Therefore, companies that demonstrate that they have a strong ESG implementation strategy and ESG communication strategy and proposition can create greater value than their competitors. ESG consulting professionals are customizing strategies to make them compatible with your business type.
According to McKinsey companies that pay attention to environmental, social, and governance concerns do not experience a drag on value creation—in fact, quite the opposite. A strong ESG company analysis and ESG implementation strategy correlates with higher equity returns from both a tilt and momentum perspective. Better performance in ESG strategy also corresponds with a reduction in downside risk, as evidenced, among other ways, by lower loan and credit default swap spreads and higher credit ratings.
Caroline Harridence is our go-to person when it comes to ESG company analysis, ESG implementation strategy and finance. We invited Caroline to share with us her thoughts on how ESG implementation strategy and ESG company analysis can help businesses save money?
We also followed her thoughts with questions you can ask yourself to assess if your company is ready for ESG advisory services implementation. So grab a coffee and enjoy reading this blog.
Caroline is a results-driven, experienced finance professional with over 25 years’ experience. She is also very active in supporting businesses improve their social and environmental impact and sustainability. Having taken her own company through the B Corp certification process, Caroline went on to train as a B Leader and now supports other businesses achieve their B Corp Status. She also works with businesses to develop and achieve their social and environmental goals as well as being the finance director for purpose led businesses.
Over to you Caroline
There are many benefits for a business to improve their environmental, social and governance (ESG) performance including reducing carbon emissions and improving diversity and equality, but a common question is can an ESG implementation Strategy and ESG communication strategy “save us money?”
The answer is yes it can and here are some examples of how a business can save money by improving its ESG performance.
Turn Off the Printer
By going paperless, not only are you helping the environment through reducing deforestation and energy usage, you will also be saving money too as you no longer need to buy paper or ink and you also benefit from lower electricity costs.
Offering staff the ability to work from home either some or all of the time not only helps to reduce pollution through less commuting, it also can lead to savings on office costs as you can move to smaller offices as not all your staff are in daily. Other options such as co-working spaces or shared offices are alternative ESG solutions that can lead to even larger cost savings.
Cycle To Work Scheme
Giving staff the ability to cycle to work can be helped through the introduction of the Government Cycle to Work Scheme. Employees can save money on the cost of the bike and accessories – how much depends on their personal tax status and how the scheme is set up. However, employers can also benefit from cost savings too through reductions in National Insurance Contributions.
Consider Your Purchases
Rather than buying new IT equipment, look into options to have it repaired/upgraded, or buy refurbished or recycled IT kit instead – both are cheaper options than buying new.
The same applies to office furniture where buying used or refurbished items can lead to significant cost savings.
Also, when you do replace your old items, don’t bin them – sell, recycle or donate them instead.
Lower Energy Costs
Turning off electricals reduces energy usage which is not only good for the environment but will also reduce your electricity costs. Simple changes such as switching off lights, computers and monitors at the end of the day all lead to savings – also make sure you actually switch them off rather than using sleep or standby modes as over time even these use some energy.
Also, reviewing your energy suppliers and opting for renewable energy providers can lead to lower tariffs which save on energy costs. Also, if you operate industrial solar panels, you can earn money by selling your excess energy back to the utility companies.
Cheaper Financing Solutions
There are a growing number of “green” finance options for businesses. Some of these options include access to finance at competitive loan rates to help a company with their ESG initiatives. Also, there are sustainability linked loans for companies whereby arrangement fees are waived resulting in business cost savings.
Reduced Recruitment Costs
Your ESG credentials are important when attracting and retaining staff and this will increase as more millennials and Gen Z enter the workforce as they place greater importance on ESG than their predecessors. Also, staff working for more sustainable businesses are often more satisfied and so are retained longer, reducing staff turnover and the need to recruit.
If your business reduces travel, not only will this help save the environment, it will also lead to lower travel costs and hence cost savings. When travel is needed, encourage the use of more carbon efficient options such as car sharing and try to avoid more congested areas and peak travel periods.
Access to Grants
Green grants could be available for companies who are pursuing environmental projects and looking to become more sustainable. Availability depends upon business type and location, details of the project and its benefits and environmental impact. Local authorities are responsible for the distribution. ESG implementation companies can suggest how to attract the right customers by marketing “green” initiatives effectively.
Businesses that focus on ESG implementation strategy and ESG communication strategy are not only building more purposeful and responsible businesses, but by having strong ESG professional credentials, they can be generating financial benefits for the company – as well as a happier workforce!
Thank you very much Caroline
If you wish to start your ESG implementation strategy and design your ESG Communication strategy, get in touch Here.
Now that we know how ESG strategy and ESG implementation strategy can save you money lets see why you need you assess your ESG company analysis and your maturity.
Going green and starting your ESG Implementation strategy and ESG company strategy can be a huge undertaking for any company. There are many ways to go green but choosing what is right for your service and products and having a plan to make it happen is a good start. So before you get started on your ESG company strategy and ESG communication strategy put a simple ESG strategy in place to keep you on track with your targets and how to reach them.
To begin with, focus on setting some clear goals, and realistic ways to achieve them.
Then, evaluate the costs and benefits of each green action too. Make sure to share your ESG strategy and ESG communication strategy with your workforce; and make green actions simple and achievable.
According to Amfori you need to reflect on the current state of play of
sustainability within your company to understand how mature your ESG Strategy and ESG Implementation strategy approach is in the market and make sure what you’re saying
is authentic. If you do so your ESG communication strategy will help you write the right messages and refine your ESG Communication strategy approach.
As a company you need to be careful you don’t fall foul of Green Washing meaning that your ESG company analysis and ESG implementation strategy claims don’t stack up with your performance. But do not fret, this can be overcome through a solid ESG Communication Strategy that would have the team behind it who will ask the difficult questions and demand the data that proves their communication activities.
Let’s now see what questions you can ask to assess your ESG company strategy and ESG implementation strategy maturity.
No company can check off every item on the list below but it might be helpful to check off what your company does do now. this way you will be aware of what needs to be done, plan your progress then track it. By checking off this list and asking yourself the below questions you will get a sense if your business is on the right track to embark into the Sustainability & ESG journey
- Do we maintain a board of directors that meets regularly, has at least one independent outside member and overseas executive compensation?
- Are you sharing financial information with all employees; no one should be innumerate
- Do you have financial controls in place to prevent fraud?
- Do you have financial reports reviewed by the board of directors and audited by an independent accounting firm?
- Do you incorporate into the mission statement a commitment to reducing social and environmental harm?
- Do you share information with stakeholders on reducing social and environmental harm?
- Do you provide employee training to reduce social and environmental harm?
We are Communique and we are a team of Environmental, Social and Governance (ESG) Communication specialists and Technical experts who will design your best sustainability strategies, initiatives and communication campaigns suited to your sector and desired impact and connect it with your business value. Get in touch if you wish to learn more about ESG company analysis and how to communicate it.