Research recently conducted by Moore Global and The Centre for Economics and Business Research (CEBR) demonstrates that medium to large size businesses that adopt ESG (Environmental, Social, and Governance) principles and practices have experienced a 10% increase in revenue across the last four years.
Anton Colella, CEO at Moore Global says that the survey shows that "itís good to be good. In business terms, if you want to run a good business with purpose, it pays off, as well. It also supports staff retention at a time when recruitment is really difficult.Ē He goes on to explain that young employees want to work at an organisation where there is a sense of positive purpose, and therefore, business leaders need to clearly state how their organisation adopts ESG principles and practices, and what the benefits are. Having an ESG strategy can boost a companyís potential for growth and it also "helps massively with staff attraction and retention,Ē says Richard Singleton, finance & sustainability director at Menzies.
However, there still seems to be some mystery around ESG and why itís important to embrace it. Colella says, "some businesses donít have experts internally to advise them on the implications or they are maybe unsure where to start, they donít even know how to do a self-evaluation, and they require some external help to, to do that, even to get off first base.Ē Organisations need to be clear about what their goals are in this area, and this is reiterated by the survey that states 79% of businesses, where the importance of ESG principles had increased between 2019 and 2023, reported that customer retention had improved.
Discover more of our verifiable CPD on sustainability here!