Nowadays, companies around the globe are flipping the script by using their platforms, products, and profits to promote and drive real change. This shift is powered by the bold vision of the Sustainable Development Goals (SDGs).
“Sustainability is no longer just a checkbox. It is the new bottom line”
1. Environmental Awareness
2. How does ESG Improvement Lead to Growth?
3. Companies Leading the Way
Environmental Awareness
The effort made in 2015 at the UN Sustainable Development Summit is starting to prosper and see the light. The increasing awareness about sustainability and how current steps and actions shape the future made a noticeable change in terms of purchasing choices. This increasing demand for sustainable products and services has influenced companies to change their strategies, decisions, and profitability methods. The power of the consumer’s voice has never been so evident. Nevertheless, social media has also played a major role in shaping the future. Online platforms have paved the way for easy and loud influences. Every effort and every voice is now heard as loud as ever.
How does ESG Improvement Lead to Growth?
There is no tradeoff between ESG (Environmental, Social, Governance) and business performance and there should not be. They both should improve alongside and be at the forefront of sustainability to drive new and bigger growth opportunities.
Enhances Market Access: As global markets evolve, companies prioritizing ESG standards gain a competitive edge. These frontrunners secure long-term market access, outpacing rivals as trade partners tighten import regulations. By adapting early, they ensure continued participation in key markets, setting themselves apart through responsible practices and forward-thinking strategies. This proactive approach not only meets current demands but also anticipates future shifts in international trade dynamics.
Increases Investment: Companies with solid and proven sustainability track records attract new funding opportunities and eventually benefit from bigger and better investment chances.
Higher Consumer Acceptance: Young consumers and talent gravitate towards companies known for sustainability. Research consistently shows that these firms hold a distinct edge in attracting both customers and employees.
Increased Appeal to Talent: Boston Consulting Group( BCG) research reveals that 70% of Gen-Z prioritize employers with an ESG focus.
New Business Models: The move toward renewable energy is creating space for new entrants into innovative markets, therefore enabling established firms to redefine the competitive landscape.
Companies Leading the Way
Sustainable companies are perceived as trustworthy. They are associated with lower risk and future readiness for businesses. They are as well-positioned as innovators and changemakers.
Nike actively aligns its operation with the United Nations Sustainable Development Goals (SDGs), particularly focusing on climate action, responsible consumption, and partnerships for the goals. Nike’s “Move to Zero” initiative aims for zero carbon and zero waste by 2050. Nike is successfully at 77% of the progress way toward its target of using 100% renewable energy across its owned and operated facilities.
Lenovo is a pioneer in environmental sustainability, producing more than 400 Lenovo products that have been designated with Climate+. The company has reduced 85% of its public water usage. Driven by the vision of “Smarter AI for All”, the company is committed to unlocking the power of AI to enable intelligent transformation across every aspect of the industry. Adopting those AI upgrades enables the company to deliver technologies, solutions, and services that empower individuals and businesses.
Ikea is committed to becoming a Circular Business by 2030, designing all products with reuse, repair, and recycling in mind. By this, the company encourages customers to adopt low-carbon lifestyles with energy-efficient products. In addition, IKEA also aims to fund initiatives that improve urban housing and living standards. From climate to equality, Ikea tackles a spectrum of global goals altogether.
"In a world that is going green, businesses that stay grey will fade out"
The campaign called, "Back to the Start", told the story of a farmer shifting from industrial to ethical practices, and Chipotle donated 60% of the song's proceeds to sustainability efforts.
It is a powerful example of how companies can use music to promote ESG values and connect emotionally with audiences.
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