What is ESG and why is it important for small businesses?

You may have heard of ESG, or Environmental, Social, and Governance recently.  If you haven’t and you own a business, then you soon will.  Environmental, Social and Governance are the three key factors used to evaluate the sustainability and ethical impact of a company’s operations.  Increasingly customers and investors are asking for transparency in this area and many are voting with their feet if businesses are not up to scratch.


What exactly do we mean by each of the three areas of ESG?

  • Environmental factors refer to a company’s impact on the natural environment, such as its carbon footprint and use of resources. 
  • Social factors refer to a company’s impact on its employees, customers, and communities, such as its labour practices, diversity and inclusion policies, and philanthropy efforts.
  • Governance factors refer to the company’s management and decision-making processes, including board composition, executive compensation, and shareholder rights.


There are not many businesses that would receive 100% if they were evaluated in each of these areas today, but that’s not the point.  Every journey begins with the first step as someone very famous once said!  ESG is important for small businesses because it can help them operate in a more sustainable and ethical way, which can ultimately lead to greater financial success. Plus, it’s just the right thing to do.


By considering ESG factors, small businesses can attract customers, employees, and investors who prioritise sustainability and social responsibility. Additionally, ESG considerations can help small businesses identify areas where they can improve their operations, reduce costs, and mitigate risk. Finally, ESG can help small businesses comply with regulations and standards related to sustainability and ethical business practices.  


We are co-founders of ESG Consulting. While we are constantly working to improve our ESG credentials, we help businesses to become more environmentally conscious, socially aware and transparent in your decision-making. Your businesses ESG rating will become the new norm as measurement is standardised.  Get a head of the curve and begin your journey today.  


Get in touch to find out more about how we can help you with your ESG goals.


Are you ready?
Then let’s begin.

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