While ESG goals continue to be important for many companies, they have evolved as technology, consumer demand, and business priorities have shifted. Many companies are working hard to improve operations, sustainability, and culture as they strive to evolve and grow, and implementing an ESG vision can help companies reach their operational goals.
What are some of the top ESG trends many companies are focusing on this year?
Greener practices
ESG often focuses on broad environmental impact and sustainable practices, but there has been an increased focus this year on energy consumption and lowering energy use to reduce operating costs. Managers can work towards energy consumption goals by installing energy reducing retrofits, like upgrading your HVAC system to a more efficient model, re-sealing windows and doors, or installing extra insulation to make your building more airtight. Replacing old faucets and toilets can also help reduce water consumption and lower costs.
Adding technology to sustainability efforts by implementing data systems that allow monitoring, optimizing, and predicting can make an impact on better managing that part of the business.
Technology
As technology evolves, so do the opportunities for businesses to better reach sustainability goals and optimize operations. AI is helping many companies to develop practices that align with their ESG goals by improving inventory management, streamlining operations, assessing and predicting equipment efficiency, and offering new ways to save money, and increase sustainability.
Using innovative tools like sensors and touchless technology can help reduce waste, track usage, and create greener practices. As well, managers can use the real-time data to predict trends, allocate labour, and reduce costs.
Transparency
Today’s consumers and companies are looking to align themselves with like-minded businesses, and that means that transparency is key. Companies need to be clear about their ESG goals and the ways in ways in which they are working towards accomplishing that mission. While value is still important to customers, of course, many people are making buying decisions based on whether a company prioritizes sustainability. In fact, 84 per cent of consumers say that poor environmental practices will deter them from a brand or company. This means that companies need to connect with their customers, seek out like-minded suppliers, and remain transparent in their efforts.
ESG goals are an important part of today’s business practices, and evolving to meet the needs of your customers is an important step in moving forward.
