The essence of a sustainable esg-oriented strategy
Integrating sustainability into business operations, what does it mean?
The future of business: sustainability and ESG investment
Why should a company focus on ESG investments?
Who is in charge of sustainability in the company?
Sustainability and brand reputation: from strategy to communication
In a global context in which environmental issues, corporate and individual social responsibility, and ethical resource management have become essential elements of the sustainability debate, adopting an approach that implements and contributes to the well-being of the planet is an indispensable condition for achieving progress.
Let’s look together at how companies can address sustainability and why it is important to act on ESG for business growth.
The essence of a sustainable esg-oriented strategy
Corporate sustainability represents a strategic and responsible approach to the management of business activities, taking into account the economic, social and environmental impacts generated throughout a company’s life cycle.
Reasoning from a long-term perspective, translates into adopting sustainable solutions with reference to both the governance models employed and the production methods.
The role of companies, in the field of sustainability, is twofold: on the one hand, they are responsible actors for the impact their production activities have on the surrounding environment and society; on the other hand, they have the potential to become the main promoters of a sustainable culture that looks to the future.
Based on the principles contained in the 2030 Agenda and the Sustainable Development Goals, corporate sustainability can be translated into strategies aimed at applying criteria that can be traced back to the ESG paradigm, an acronym that stands for the three pillars of sustainability, which are essential for the sustainable transition of companies:
- Environmental;
- Social;
- Governance.
Integrating sustainability into business operations, what does it mean?
Integrating sustainability into business operations means incorporating economic, social and environmental considerations into a company’s day-to-day decisions and management practices.
Corporate operations represent the fertile ground on which to employ sustainable strategies pertaining to ESG (Environmental, Social, Governance) factors on a daily basis; a ground on which concrete and beneficial actions can be taken:
- Environmental footprint analysis, which is the assessment and measurement of the environmental impact of business operations.
An example of this type of analysis is the organization’s carbon footprint assessment, which is useful for analyzing and quantifying the CO2 emissions produced by the company and related to Scope 1, 2 and 3;
- Clear definition of sustainability goals, carried out in line with the Sustainable Development Goals found in the United Nations 2030 Agenda, and internationally defined sustainable best practice guidelines;
- Adoption of investment policies aimed at improving energy efficiency, such as adopting renewable energy sources or implementing energy management practices;
- Creation of a sustainable supply chain, which translates into choosing to partner with suppliers who meet high sustainability standards so that environmental impacts are assessed and monitored throughout the supply chain;
- Integration of corporate social responsibility (CSR) for the purpose of local community involvement and the promotion of an ethical corporate culture;
- Transparent and clear communication of the sustainability policies adopted, through the preparation of documents aimed at reporting on its ESG performance (Sustainability Report, CFO report, etc.), to engage any stakeholders and at the same time increase brand trustworthiness for consumers;
- Involvement of employees in all sustainability initiatives, through training programs and internal events aimed at employee empowerment and common growth;
- Real investment in research and development projects in sustainable innovation.
The future of business: sustainability and ESG investment
In the increasingly competitive business landscape of 2024, a focus on corporate sustainability is no longer a choice, but an imperative necessity for companies that aspire to long-term success.
Investing in sustainability is a strategic move, as it provides a long-term view of the company’s business and its concrete impact.
This includes investments based on environmental, social and governance (ESG criteria), which have become popular as a result of more and more investors’ desire to integrate sustainability into financial decisions.
The acronym “ESG” stands for three factors:
- Environmental (Environmental): covers practices related to the environment, such as greenhouse gas emissions, sustainable resource use, climate change, and waste management;
- Social (Social): involves social aspects such as corporate social responsibility, employee management practices, diversity and inclusion, worker health and safety, and relations with local communities;
- Governance (G): covers corporate governance structure, corporate ethics, transparency, board independence, and conflict of interest management.
ESG investments cover all investment policies inherent in the three factors mentioned above.
Why should a company focus on ESG investments?
The benefits associated with ESG investments are numerous, to the point of making this type of instrument particularly attractive to investors. Specifically, among the inherent benefits associated with ESG investments are:
Risk mitigation.
ESG investments help identify and mitigate risks associated with environmental, social, and governance issues that could adversely affect companies’ financial performance.
Long-term financial performance.
Companies that adopt sound ESG practices are more resilient and manage market changes better, promoting more sustainable long-term financial performance.
Stability.
Good and efficient corporate governance is, for investors, a greater guarantee of long-term stability; therefore, entities that strengthen their governance from a sustainable perspective increase their chances of winning over investors.
Operational efficiency and cost savings.
Adopting sustainable practices often leads to greater operational efficiency and long-term cost savings.
Investing in greener technologies and processes not only reduces environmental impact, but can also result in energy savings and lower operating costs over time.
Talent attraction and retention.
New generations of talent are strongly values-oriented.
A clear commitment to sustainability is a powerful tool for attracting and retaining employees. Companies that demonstrate social and environmental responsibility attract motivated professionals, helping to create an engaged and innovative corporate culture.
Who is in charge of sustainability in the company?
However, key roles involved in corporate sustainability include:
- The Sustainability Manager or ESG Manager: a figure responsible for defining and implementing sustainability-oriented corporate strategies.
That of the Sustainability Manager is a cross-cutting figure, working in areas such as corporate communications, energy efficiency, corporate social responsibility, and monitoring the impact of production processes.
Among the Sustainability Manager’s main responsibilities is setting long-term goals that guide the entire corporate organization; - The Sustainability Analyst: a role responsible for collecting data and indicators to monitor and assess a company’s environmental, social and economic impact.
That of the sustainability analyst is a figure who contributes to the development of opportunities to improve business processes in line with long-term sustainable goals;
- The HSE Manager, or Environment, Health and Safety Manager: a figure responsible for monitoring and implementing policies and practices that reduce environmental impact and ensure a safe and healthy work environment.
This is a supporting figure in both the strategic and operational phases;
- The Corporate Social Responsibility Manager: a figure in charge of achieving the company’s sustainability and social responsibility goals. This professional profile is responsible for promoting and maintaining a corporate culture that is attentive and sensitive to sustainable and socially responsible issues. The CSR Manager, in fact, prepares initiatives of a philanthropic, cultural and ethical nature aimed at creating value for the community.
Sustainability and brand reputation: from strategy to communication
Corporate sustainability is a corollary of principles, practices and goals that a company chooses to adopt as it champions values related to society and the environment, and for this reason it is closely linked to a brand’s reputation.
Measuring the impact of one’s productive activity on the surrounding environment and society, and becoming concrete spokespersons for a new approach to the way of doing business, produces a twofold benefit for companies:
- a reputation, at the brand level, in line with a value system with a strong ethical impact;
- an increase in consumer trust, which is more likely to rely on a brand that respects sustainable values shared by the entire community.
It is worth pointing out that in order to increase a company’s brand reputation from a sustainable perspective, it is necessary to take concrete, daily actions to reduce the environmental impact of one’s production activities and increase sustainable governance strategies.
The sustainable strategies adopted and transparent communication are elements that significantly enhance the corporate image, both from a sustainable perspective and more generally.
Those who take effective action on behalf of the environment, society, and people must inform their audiences of what they have done to highlight their commitment, and to do so they can rely on professionals capable of enhancing their efforts with sustainability documents drawn up according to internationally recognized standards and transparent and effective ESG communication.
Investing in sustainability means investing in the future.
Learn about our method.
