The term stands for Environmental, Social and Governance and covers the universe of sustainability in companies.
If you are looking for a job or if your company wants to adapt to new changes in the business world, you must have heard of the acronym ESG. If you haven't, keep reading and we will show you the reasons to embrace this new trend, which is here to stay.
The term ESG stands for Environmental, Social and Governance and encompasses the universe of sustainability in companies. In other words, ESG is the way in which the corporate world measures investments that directly or indirectly impact the relationship between the environment and society.
The first time the acronym was used was in the Principles for Responsible Investment by a small team from the UN (United Nations) that was trying to persuade businesspeople about sustainable actions, in 2004. After that, it gradually appeared on the agenda of various conversations over the years.
ESG is becoming increasingly important, which is why it has been linked to the UN's 17 Sustainable Development Goals. As a result, the topic has become a trend today and more companies are adopting this new business model.
How can my company work on ESG?
In the past, companies' only goal was to make a profit. This is not the most important thing when we talk about ESG. By adopting this new way of thinking and acting, the company wants to show its vision of the world, its understanding of what can be worked on internally and externally to make the place a better place. And this is planned for the present and future of the business.
When we put everything that involves a company on paper, we list factors ranging finland phone number data from employees to customers. Within ESG, everything that is involved and impacted by the company is called stakeholders.
These groups are so important that they have been given their own economic system: stakeholder capitalism. The goal is to create value by studying all the needs of the parties involved so that the company can grow positively.
Building a healthy relationship with stakeholders will make your company prosper more and more. To do this, the business needs to follow some important points that make up ESG, always prioritizing true communication with everyone involved:
Work on projects that do not emit greenhouse gases;
Adopt the reduction of the production of waste that is hazardous to the environment;
Protect customer and supplier data;
Build a more diverse company;
Respect workers’ rights;
Implement positive corporate conduct;
Create a relationship between entities and governments;
Have updated communication channels
Another point to be considered in ESG is Governance. According to a survey conducted by the Brazilian Association of Financial and Capital Market Entities (ANBIMA), 67% of asset managers believe that ethics and transparency are the most important factors within ESG. Both are part of Governance.
ESG should also be incorporated into your company's marketing strategy . With actions aimed at accessibility and social responsibility, the brand will be able to understand what customers are looking for when using its products and services.
There are several ways to include ESG in marketing and transform it into a sustainable strategy. For example, attention to the environment should be reflected in the brand's daily activities and not just on special dates, such as Earth Day.
Understanding your target audience is important to know how to apply some ESG aspects to marketing, such as engagement with social causes. This is a topic that is widely discussed by the current generation. So, pay attention to this.
The content structure should also be impacted by ESG. The company must prioritize posts, images, texts and other media that raise awareness among the groups involved about a more sustainable and social world. Remember that all content production must focus on strengthening the brand.
ESG also prioritizes the relationship between the company and its audience. Therefore, a good marketing strategy involves creating events and campaigns that involve people. The important thing is to show customers, and future customers, that the brand has the same concerns as they do.
Although implementing ESG in your company is not a low cost, the return is satisfactory and secure. In the not-too-distant future, organizations that adopt this business model will be able to enjoy several benefits, such as a positive impact on their reputations and increased investment.
If you are thinking about planning the future of your company, W51 Agency can help you. In our hands, your marketing strategy will please your target audience, with relevant content and making your business stand out even more.
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