Three letters that will make your business more successful and sustainable
The opinions expressed by entrepreneurs contributors are their own.
In September 2022, Patagonia founder Yvon Chouinard divested his entire $3 billion business to ensure that all of his profits would be used to fight climate change. This bold and generous move represents a corporate shift towards environment, social and governance, better known as ESG.
What is ESG? The term refers to increasingly important corporate standards in which decision-makers examine not only the company's balance sheet, but also its environmental, social and governance policies.
ESG advocates say the approach helps protect the planet, paves the way for greater diversity in the workplace, and protects fair wages.
But ESG is also a good business decision. According to PWC, 80% of consumers make purchasing choices based on sustainability, while 83% of buyers believe companies should actively shape ESG best practices.
Because consumers use their money to support responsible businesses, business leaders are considering implementing an ESG strategy. Here are five ways.
1. Be intentional in pursuing ESG operationsMany companies do good things without explicitly aiming to be ESG-focused. But deliberately choosing ESG processes provides a framework for your company's legacy.
Take a look at Patagonia. Chouinard decided to put sustainability at the heart of the brand from the start, mainly by focusing on renewable and recycled materials. Giving the company to a climate-focused nonprofit and trust organization is a cornerstone of that initial goal.
By intentionally integrating ESG into your vision and policies, you will have a compass to cohesively guide your projects, strategies, materials and goals, which will build trust among employees and buyers.
>Related: 3 Steps to Positive Environmental, Social and Governance (ESG) Impact
2. Switch to electric vehiclesThink about how you receive your packages. Vehicle fleets usually transport your belongings from the store or warehouse to your doorstep. Other vehicles are responsible for transporting materials through the supply chain or bringing workers to the office and other business events.
All of these vehicles on the road account for a significant portion (28%) of total greenhouse gas emissions. Using electric vehicles (EVs) is a simple way to reduce your carbon footprint, even when you can't move much else.
Light-duty vehicles are the worst offenders, accounting for 59% of vehicle emissions. So if it makes sense for your business, focus on replacing those vehicles first.
Another advantage: electric vehicles can function as mobile billboards for your business. Every time you or an employee take a com...
The opinions expressed by entrepreneurs contributors are their own.
In September 2022, Patagonia founder Yvon Chouinard divested his entire $3 billion business to ensure that all of his profits would be used to fight climate change. This bold and generous move represents a corporate shift towards environment, social and governance, better known as ESG.
What is ESG? The term refers to increasingly important corporate standards in which decision-makers examine not only the company's balance sheet, but also its environmental, social and governance policies.
ESG advocates say the approach helps protect the planet, paves the way for greater diversity in the workplace, and protects fair wages.
But ESG is also a good business decision. According to PWC, 80% of consumers make purchasing choices based on sustainability, while 83% of buyers believe companies should actively shape ESG best practices.
Because consumers use their money to support responsible businesses, business leaders are considering implementing an ESG strategy. Here are five ways.
1. Be intentional in pursuing ESG operationsMany companies do good things without explicitly aiming to be ESG-focused. But deliberately choosing ESG processes provides a framework for your company's legacy.
Take a look at Patagonia. Chouinard decided to put sustainability at the heart of the brand from the start, mainly by focusing on renewable and recycled materials. Giving the company to a climate-focused nonprofit and trust organization is a cornerstone of that initial goal.
By intentionally integrating ESG into your vision and policies, you will have a compass to cohesively guide your projects, strategies, materials and goals, which will build trust among employees and buyers.
>Related: 3 Steps to Positive Environmental, Social and Governance (ESG) Impact
2. Switch to electric vehiclesThink about how you receive your packages. Vehicle fleets usually transport your belongings from the store or warehouse to your doorstep. Other vehicles are responsible for transporting materials through the supply chain or bringing workers to the office and other business events.
All of these vehicles on the road account for a significant portion (28%) of total greenhouse gas emissions. Using electric vehicles (EVs) is a simple way to reduce your carbon footprint, even when you can't move much else.
Light-duty vehicles are the worst offenders, accounting for 59% of vehicle emissions. So if it makes sense for your business, focus on replacing those vehicles first.
Another advantage: electric vehicles can function as mobile billboards for your business. Every time you or an employee take a com...
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