Sustainable business Examples of ESG activities in a company

By BluExperience | September 30, 2024 | ESG

Sustainable business – Examples of ESG activities in a company

The concept of sustainability has become an important element in the activities of companies and organizations. It is one of the key factors to keep in mind when shaping a company’s management strategy. In order for sustainability to be achieved, companies need to implement practices in line with ESG principles. The goal of such activities is to create a more transparent business model that meets the needs of both companies, societies and the environment.

What is ESG?Why implement ESG in a company’s strategy?

The acronym ESG comes from the English words: Environmental, Social and Governance. The term refers to finding a balance between the economic values and ethical aspects of companies’ operations. It is therefore about creating a sustainable vision for business that combines profit with social and environmental responsibility. The history of the ESG concept dates back to 1972, when the problems of dwindling natural resources were first recognized at a United Nations conference under the theme “The Human Environment.” However, it was not until the so-called Earth Summit, held in 1992 in Rio de Janeiro, that the foundations were laid for a global approach to sustainable development, defining the goals and directions of actions taken to protect and counteract the degradation of our planet. Today, a sustainability strategy is a “must have” for any company that wants to count in the market.

Why implement ESG in a company’s strategy?

There is no doubt that corporate sustainability efforts have many benefits. This is closely correlated with global trends that increasingly emphasize the integration of environmental, social and management aspects in all areas of the company. One of the key benefits of implementing ESG criteria for companies and the overall economy in general is real profits. It turns out that companies that integrate these principles well and take a long-term view can gain competitiveness, but there are also examples where excessive ESG costs have not yielded immediate benefits. These benefits are often long-term and depend on the specifics of the sector and region. This approach not only strengthens an organization’s position as a responsible player in the market, but can also lead to improved operational efficiency, which translates into a company’s competitiveness. On the other hand, companies that ignore sustainability measures and underestimate the potential of the ESG concept may face difficulties in raising capital. By failing to implement ESG policies, a company may also expose itself to reputational damage, which may consequently lead to a significant decline in sales of goods and services.

 

ESG strategy – examples of actions for sustainable development

Companies that demonstrate strong ESG values have much to gain indeed. However, implementing sustainability measures is labor-intensive and requires preparation on the part of the company. Here are some examples of best practices:

  • Taking measures to reduce greenhouse gas emissions,
  • Integrating climate policy into business strategy,
  • focusing on the organization’s relationships with employees, customers, suppliers and the community,
  • To ensure the well-being of employees, promote diversity and inclusion,
  • undertaking social investment,
  • Transparency, integrity and ethics in action.

ESG is also becoming a mainstay of event planning. Event agencies are increasingly engaging in environmentally friendly practices, such as reducing plastic consumption, using renewable energy and sustainable transportation. An ESG index is used to assess how an organization manages sustainability aspects. These are measurable data that help companies and stakeholders monitor progress and identify areas for improvement. ESG indicators are used in sustainability reports, which became effective as early as January 1, 2024. The necessity stems from the CSRD (Corporate Sustainability Reporting Directive), which imposes this obligation on companies in the EU to report non-financial data. It obliges large companies that meet certain ESG criteria, such as number of employees and turnover, to report.