Satisfying consumer demand, increasing employee engagement and retention, and meeting stronger regulatory expectations are among the compelling benefits organizations can achieve by integrating environmental, social, and governance (ESG) considerations into their strategies and operations.
Speaking during a Sensiba webinar, Carrie Mayo, founder and CEO of marketing services firm MAYO Web + Marketing, and Eric Hudson, founder and CEO of environmentally friendly consumer products company Preserve, said the benefits of ESG initiatives far outweigh the time and financial investments.
“There is absolutely a growing trend of consumers buying sustainable products who are willing to pay more for them, Mayo said. “Consumers are willing to embrace the brands that are choosing purpose and sustainability.”
Examples of How Sustainable Strategies Help Businesses
Hudson’s company has focused on creating environmentally focused products since its founding in 1997. He said his company’s fastest-growing product is the POPi 5 shave system, which features a handle manufactured with plastic diverted from oceans.
“We work with nonprofits that are pulling waste plastic out of waters that’s bound for the ocean,” Hudson said. “That plastic comes to us and gets ground into material that can make a razor handle. We also give 25% of our proceeds to nonprofits that are working to make a difference for ocean health.”
He also cited a program with Boston University’s cafeteria to replace single-use cups and cutlery with implements that can be returned to the cafeteria for reuse.
“[The school] has saved a lot of money by reducing waste and expense, and reducing the purchase of single-use products,” Hudson said. “They’re seeing incredible financial merits of choosing a more environmentally friendly system.”
Similarly, Mayo said her firm factors environmental considerations into its purchases, such as sourcing promotional merchandise locally or using products that incorporate recycled materials.
ESG Increases Employee Engagement
A demonstrated commitment to ESG efforts can also help companies with their employee recruitment, retention, and engagement efforts.
“People want to work for companies that align with their values,” Mayo said. “The way we do this is giving our employees the power to choose how we donate our money, how we donate our services, or where we spend our volunteering time.”
“Our ESG initiatives…have led to people being attracted to working at Preserve,” Hudson said. “We have very low turnover, and we have a highly engaged and motivated team. The initiatives that we have engaged in really help our organization and our employees understand what we do on an ESG front, and love that aspect of Preserve.”
Beyond employees, Mayo said sharing an authentic ESG story can increase an organization’s attractiveness to a wide range of stakeholders.
“From a brand and marketing perspective, it is critical right now to incorporate [ESG] into your value proposition sooner rather than later. Do it authentically, and it is far deeper than a tagline or a page that’s hidden somewhere on your website,” Mayo said.
ESG Regulatory Requirements Increasing
Karen Burns, leader of Sensiba’s ESG and Sustainability practice, shared a variety of regulatory mandates and standards are converging to harmonize sustainability reporting. These include disclosure laws in California, climate disclosure rules in Europe, and climate reporting requirements proposed by the U.S. Securities and Exchange Commission.
Hudson said his company factors regulatory considerations into his company’s products and materials decisions.
“It’s going to be happening more, but we already have concrete examples of where regulation in a number of states is affecting Preserve and our offerings,” Hudson said. “There are regulations that require recycled content, or that limit the use of single-use products, and that demand the recyclability of a product or the compostability of a product. Our products, because we’ve been focused on sustainability, comply. We’ve been ahead of the curve.”
To learn more about incorporating ESG in your business strategy and operations, contact us.
