If you’re thinking about weaving ESG principles (and actions) into small business strategy, then the good news is that it is good for your business as well as your community. However, it can seem like a huge area, impossible to get right, and riddled with issues. The reality is that you won’t get it all right, you can’t get it all right, not straight away anyway, but the important thing is to try and persevere. With that in mind, we’ve outlined a few tips to begin the journey as easily as possible.
Conduct an ESG Audit
That’s a fancy way of saying do an assessment of your current ESG status. Start by examining your current environmental, social, and governance practices to identify areas where you can improve. This may involve reviewing your company’s energy usage, waste management, employee policies, and governance structure. Be positive, the chances are you’ve already incorporated some, like reducing paper use, sorting your recycling or embracing a diversity policy. So that’s all the more reason to go further!
Set ESG goals
Once you have identified areas for improvement, the next stage is to set specific, measurable goals for your company’s ESG practices. For example, you might aim to reduce your carbon footprint by a certain percentage or increase the diversity of your workforce.
Wait, you’re already doing that? Or, you can’t currently go any further? What about offsetting your emissions? Organisations like Ecologi, make that easy.
Equally, if you think you’ve already nailed that diversity policy, take a look around your workplace and see what more you could do. Look for ideas and resources from people like Neurodiversity in Business. Start small, and as you make progress you can raise the bar.
Integrate ESG into decision-making processes
Make ESG considerations a regular part of your decision-making processes. This may involve evaluating the environmental and social impact of new products or services, considering the diversity of your suppliers, or incorporating ESG factors into your financial analysis.
Engage with ESG experts
Consider seeking advice from ESG experts (we can help you with this) such as consultants or industry organisations, to help you develop and implement your ESG strategy.
Communicate your ESG efforts
Be transparent about your ESG efforts with your employees, customers, and stakeholders. Wanting to do better for your world and community is a good thing, so share the love. In addition, it will increase your reputation as a business of integrity and help to create a reality where ESG principles in business become the norm.
Overall, incorporating ESG principles into your small business strategy requires a commitment to sustainability and social responsibility. By taking a holistic approach to ESG, you can help ensure that your business operates in a way that benefits both the environment and society, while also promoting long-term financial success.