We only need to think of Patagonia and its commitment to creating sustainable products and establishing fair labour practices to see what a huge positive impact this has also had on the company’s perception. Plenty more big brands have come to show solid commitments to ESG, from Microsoft’s decision to be carbon negative by 2030 to Warby Parker, which ships a pair of glasses to someone in need for every pair sold.  

So, how can firms who need to raise their bottom line also make a difference to society and the environment? And how can they do that in a committed and sincere way?

Why ESG is so important

ESG is an umbrella term for everything from how a company mitigates its negative impact on the environment through its treatment of the people it partners and works with to its ethical approach to internal policies and practices, like board structure and pay.

Taking care of the good you do will not only interest environmentally conscious investors and customers but can also increase loyalty and satisfaction among your current team and attract ESG-minded candidates for your company. Younger generations of candidates greatly value companies “doing their bit” for the environment, so it is in any future-facing company’s best interests to place ESG front and centre.

How to commit to ESG policies

Choose the ESG policies that are most relevant to you as a company. If your company focuses on creative solutions, ensuring your workplace is diverse and inclusive will improve your reputation and drive more effective and broad-ranging problem-solving. Similarly, adopting sustainable technologies that reduce your carbon footprint can help reduce costs or improve operational efficiency in the long run.

Engaging in local community and social ventures can also have a huge positive impact on the well-being of your employees and their workday. Many local charities will be delighted to have extra support, whether through fundraising or volunteering. Aldrich & Co has a long history of supporting London-based charities, from helping disadvantaged students get university placements with IntoUniversity to fundraising for Horatio’s Garden.

Horatio’s Garden is a charity that creates and nurtures beautiful, biodiverse gardens in NHS spinal injury centres. The charity is commited to ESG principles by offering therapeutic spaces that help rehabilitate patients with spinal injuries. Our Managing Director, Emily Aldrich, has raised funds for the charity by cycling across the Pyrenees from Bilbao to Barcelona in four days.

But this doesn’t mean you have to get on your bike to do good!

Make realistic changes

Unless firms are exceptionally agile, they are unlikely to change everything at once. We suggest starting by making a few changes that you can measure over a shorter period, with a vision to increase your investment. Here’s how you can make a real difference right now:

• Offer your local community a helping hand: Small, local initiatives often need extra help, so we recommend reaching out to them to ask how you could best support them.
• Partner up: If you see other businesses, NGOs, or community groups helping in an area that interests you, offer to pool your resources and work together.
• Volunteer employees: Gather a list of local charities and encourage employees to volunteer for them for a day a month.
• Create a team dedicated to ESG: Practising ESG can significantly boost your company’s reputation, though you must regularly act on and review your policies. Establish a team of people in the firm who can continue to monitor and analyse your efforts and results over time, and keep their ears to the ground for new local initiatives.

How to measure your effectiveness in ESG

Setting clear goals is crucial for any venture, from career success to business development. Define objectives for each initiative, and ensure that you can measure them. You may have key performance indicators (KPIs) like volunteer hours, the number of people reached, or carbon footprint calculators.

Qualitative feedback can also be enormously helpful as social proof of your contribution. Think about who has been most affected by your efforts to make a difference, and don’t be afraid to ask!

Regular check-ins and assessments with your designated ESG team will also help you ensure that you are measuring your impact regularly, and that those endeavours stay foregrounded. You should take these meetings with a vision to publish reports that detail the findings and outcomes of your activities.

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Have we inspired you to start practising ESG in your firm? Are you an executive looking for new ways to make a difference and need a helping hand? Aldrich & Co offers business coaching and expert guidance for C-suite professionals. Led by Managing Director Emily Aldrich, your coaching session will be tailored to your business needs and ensure you reach your goals.