Businesses that fall short in environmental, social, and governance matters risk being rated poorly. Having a strong ESG portfolio can create greater value for them. Here are four strategies for achieving that value.
A strong ESG proposition offers more eco-friendly products, therefore attracting more B2B and B2C, as well as benefits from better access to resources. A strong ESG proposition also allows companies to gain a foothold in new markets and expand into pre-existing ones.
When governing authorities trust businesses, they are awarded access, approvals, and licenses that assist in opportunities for advancement and growth. A study done by McKinsey Quarterly found that companies with social commitment activities that were said to be valuable by the public and social stakeholders had better luck in receiving those resources and without any holdups. ESG can also drive customer traffic, where 70 percent of customers surveyed on purchase in various industries said they’re willing to pay an additional 5 percent for environmentally friendly products, according to McKinsey research.
Having a solid ESG proposition can help reduce costs significantly. Achieving the perfect ESG plan can be an aid in reducing expenses such as raw material costs and the actual cost of water and carbon, which research has proven can affect operating profits by about 60 percent. The McKinsey study also showed the companies across different regions that have taken their sustainability schemes the furthest did extremely well.
Reduced regulatory and legal involvement
With a strong ESG proposition, an organization can achieve freedom from regulatory pressure and earn assistance, grants, and government support. Across sectors and regions, researchers have consistently seen how a strong ESG plan helps companies avoid unfavorable governmental actions.
Boost on employee Efficiency
Not only will a strong ESG proposition help companies bring in and keep high-quality employees, but it will also increase employee motivation by implanting purposefulness, which will ultimately increase productivity. It has been proven that employees with a sense of purpose and perception of impact on the good of their work perform exceedingly well. Recent studies also show that employees react positively when companies do their diligence and give back to the community. In the same way a strong ESG proposition can boost employees to perform better, a weak ESG proposition will certainly do the opposite.
A company such as HOBI has taken the action to improve its ESG program through its vITAD services. HOBI incorporates a strong ESG proposition throughout each of its services, including refurbishment and remarketing, reverse logistics, data security, and erasure. Hobi’s R2v3, RIOS, and ISO 14001 certifications ensure all equipment has been processed in full compliance with the law. HOBI is also a woman owned and WBE-certified company, who engages in a yearly audit and only works with credible companies and vendors.
For more information about our ITAD services call 817-814-2620, or contact HOBI at firstname.lastname@example.org.