Is your business truly sustainable? Do you consider the impact your operations have on the environment, your employees and the wider community?
In today’s world, ESG (Environmental, Social and Governance) factors are no longer just a “nice-to-have” – they’re essential for long-term success.
As your trusted financial advisors, GTB’s commitment is to remind you that your corporate social responsibility is in your hands and 88% of consumers want your business to help them make a difference.
Here’s the what, why and how your business should prioritise ESG.
Understanding ESG Principles
ESG encompasses many factors, from reducing your carbon footprint and promoting ethical sourcing to fostering diversity and inclusion in the workplace. It’s about creating a business that’s profitable, responsible, sustainable and aligned with your stakeholders’ values.
Why Should ESG Be a Priority for Your Business?
- Attract ethical investing from investors who are increasingly seeking out companies with strong ESG performance. Did you know that global ESG assets have grown to over $41 trillion since 2022 and are projected to reach $50 trillion by 2025? You won’t want to miss out on your share of this growth potential
- Win customer loyalty by prioritising environmental and social responsibility. 76% of consumers would only buy from companies that prioritise these values.
- Improve your brand reputation and attract top talent by showcasing your commitment to ESG. Companies that actively promote their ESG commitment grow twice as fast as those focused solely on profit.
- Drive innovation by integrating ESG considerations into your business strategy. This can lead to new products, services and processes that benefit both your business and the planet.
Assess Your ESG Score: How Does Your Business Measure Up?
Take this quick assessment to gauge your company’s current ESG performance:
Environmental:
- How do you manage energy use, waste and pollution?
- Are you actively reducing your carbon footprint?
- Do you source materials ethically and sustainably?
Social:
- Do you prioritise employee well-being and development?
- Do you foster a diverse and inclusive workplace?
- Do you engage with and support your local community?
Governance:
- Do you have ethical, solid leadership and transparent decision-making processes?
- Do you have fair executive compensation practices?
- Do you prioritise shareholder rights and engagement?
Give yourself a score from 1 to 5 for each question (1 being the lowest, 5 being the highest). Add up your scores to get your overall ESG rating.
- 1-15: Significant room for improvement
- 16-25: Making progress, but more work to be done
- 26-30: Strong ESG performance – keep up the great work!
What Can You Do to Improve Your Score?
Now that you have a better understanding of your company’s ESG performance, it’s time to take action. Even small steps can make a big difference. Here are some ideas to get you started:
- Reduce your energy consumption by switching to renewable energy sources, upgrading to energy-efficient equipment, and encouraging employees to adopt eco-friendly practices.
- Minimise waste by implementing recycling programs, reducing packaging and finding creative ways to reuse materials.
- Support your local community through volunteering, charitable donations and partnerships with local organisations.
- Foster a diverse and inclusive workplace where everyone feels valued and respected.
- Promote ethical sourcing by choosing suppliers who share your commitment to sustainability.
GTB’s Commitment To The Future Of Your Business
Gauld Tulloch Bove (GTB) is committed to helping businesses integrate ESG principles and build a more sustainable future. We offer specialised services to guide you on your sustainability journey, from developing an ESG strategy to measuring and reporting your progress.
Contact us and we’ll help you analyse your ESG score, identify areas for improvement and develop a roadmap to achieve your sustainability goals.
