Building a Business Strategy? Don’t Forget ESG

Almost into 2022, the world is still reeling from the effects of the pandemic.?

Indeed, economists are of the opinion that the disruption's deeper impact will be felt in the years to come.?

What that means is, for now, we are in the dark.?

Not that uncertainty was never there. Managing risks is all businesses do. But uncertainty has never been higher, and so sudden, lately. The financial crisis of 2008 comes closest in recent memory.?

But in the uncertainty that ensued, one thing was certain: a business strategy, in 2022, cannot be complete without ESG.?

ESG and the value of corporate responsibility??

Sustainable growth had already been gradually becoming a top concern for corporates worldwide.???

Even before the pandemic, more than 50% (McKinsey) of CEOs believed that long-term, sustainable success ought to be prioritized over short-term financial growth.??

And how can long-term, sustainable success be attained??

By aligning business values with the Environmental, Social, and Governmental values, or ESG values, of your stakeholders.???

What would the rationale for CEOs be to attend to ESG values??

As the data illustrates, the next generation of investors is more likely to invest in businesses that are responsible and develop a business strategy that —??

• Ensures environmental stewardship?

• Respects social relationships, and?

• Is fully accountable and transparent?

And so, unsurprisingly, businesses began to comply with more than 70% (KPMG) of CEOs feeling the need to comply with the environmental, social, and governmental values that reflect those of their customers and investors.?

But while ESG's impact on business strategy has been well known, many businesses mostly focused on reversing climate change and being content with CSR.??

Then, the pandemic happened.?

Man-made climate change became ever-more apparent as emission volumes decreased by staggering figures. "Nature healed", as some would say. Globally, wealth and social inequalities worsened. Leaders were exposed.?

Stakeholders are exasperated and insist that it’s high time that businesses set the track right. Do the right thing.?

And, therefore, a business strategy that overlooks ESG is highly likely to fall short of its set mark.??

Fortunately, ESG consulting has made dramatic advances lately, reliably predicting what’s around the corner, what’s expected.??

Getting started with ESG consulting?

Well, markets are profoundly complex.?And, to be always prepared, businesses heavily invest in market research.??

Market research is a vast, expansive discipline, one part of which is ESG research.?However, ESG research itself is expansive, demanding plenty of time and energy. Therefore, businesses have a choice to seek ESG insights, either from within or consulting experts that offer ESG consulting services.

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In any case, the teams are dedicated towards collecting data about the environmental, social, and governmental factors shaping the world at the moment. This data is integrated, processed, and analyzed to infer trends or patterns that offer a peek into what is to come.?

The insights inform strategic responses, which are devised to neutralize future risks — or, meet stakeholder expectations, not just environmental, but expectations that cut across ‘E’ as well as ’S’ and ‘G’.?

In other words, ESG consulting offers insights that make businesses future-proof.

Jency is an enthusiastic writer and enjoys spreading knowledge through her writing. Her perks include business strategies, technologies and self development.