Vittakosh is an outcome of a notion – a belief that we can and ethical practices.
As the modern consumer gets more socially and ecologically aware, no good business can ignore the importance of Environmental Social Governance (ESG). ESGs are no longer the functions of a brand’s CSR department, but a full-blown part of the core company philosophy and goals. Several reports have indicated that the future is bright for businesses that are investing in ESG as it will not only give a competitive advantage in the market but also attract investors.
A holistic leadership approach that keeps into account the business’ social and environmental impact, ESG focuses on a holistic view of business practices and goals. A company following ESG norms looks beyond the bottom lines and company books to take into account how its business is impacting its customers, employees, the environment, and society. It is a direct function of a company’s ethics and morals.
For the past few years, especially in the wake of the global pandemic of Covid-19, there is an increased focus on stakeholder capitalism. It is a philosophy which promotes the belief that companies have an obligation beyond generating stakeholders’ returns and that they must be mindful of their impact on society and the environment.
While this form of capitalism is not new and was quite popular in the 50s and the 60s when the business world was dealing with the impacts of world war 2 and several other catastrophes, it is making a stronger comeback now. This time is closely linked with the environment and sustainability goals including the impact on climate change, diversity and human rights.
The modern consumer, by the virtue of the web and a better understanding of business processes, is more concerned about the environmental and social impact of a business. Therefore, investors too are leaning toward businesses with high ESG standards and parameters. Additionally, there has been greater pressure from governments and targeted interventions that benefit ESG-compliant businesses.
All this culminates in increasing investor interest in startups that are ESG-compliant and conscious of their impact on society, the environment, and the population.
Being ESG-compliant is now important for businesses or all sizes. It not only attracts the much needed VC money for the startups but also the right talent, consumers, and innovations. Overall, ESG equips the business to become resilient in the current and possible future scenarios.
Committing to ESGs can add a solid topline growth making it easier for new businesses to penetrate the market, expand their operations, and get government support. Additionally, using more sustainable business methods is not only good for the environment and society but can also significantly cut costs for your own business too.
An ESG-compliant startup will also attract better talent as people are now ever more conscious of the legacy they would leave behind for the planet. Several pieces of research have indicated that strong companies with good ESG scores attract better talent and have longer retention.
As per a recent report by PwC, 83% of consumers think companies should be actively shaping ESG best practices. They not only want businesses to be good corporate world citizens. In fact, they demonstrate a measured effort to live more sustainably themselves. They are conscious of their impact on the environment and are worried about future generations leading them towards a more ESG-compliant lifestyle.
If you are a new-age company that is still figuring out its tropes in the market, you have the advantage of starting your ESG journey early on. It will make your association with ESGs more honest and trustworthy. In fact, it will get you better attention from investors and customers alike.
A business must consider different factors while deciding on its ESG policies.
First & foremost is to pick the right cause and purpose for your business. You can’t be talking about your commitment to marine life while running a company that has a greater impact on land resources. You must comprehensively read into your business goals, the resources you are exploiting, and the larger impact you have on the planet while creating your ESG policies. They should not be an attempt to fool the investors or consumers but actually, reduce the negative impact of your actions.
You can also consider conducting surveys and market research to identify the key priority areas for your ESG journey. Once you have figured out your goals, allocate resources to define strategies that are ESG-compliant and chart out accountability measures.
Further, you can become a signatory to different relevant standards and reporting frameworks. Keep yourself updated with changing rules and regulations. Have a process in place to keep adapting to the changing norms and requirements.
Vittakosh is an outcome of a notion – a belief that we can and ethical practices.