ESG, or Environmental, Social, and Governance, has been making waves in the news lately, and for good reason.

More and more companies are starting to wake up and smell the roses, realising that, after a good three decades of hearing about it, they need to take ESG seriously if they want to stay competitive and maintain consumer interest.

In this article, we’ll take a look at three of the key elements within the ESG movement and a game changer within each.

Renewable Energy

First up, let’s talk about renewable energy.

It’s no secret that we, as a societal collective, need to transition away from fossil fuels if we want to mitigate the worst effects of climate change. That’s why it’s great to see so many companies and nations investing in renewable energy sources like wind, solar, and hydrogen.

In fact, according to a 2022 report from the International Energy Agency, solar power is now the cheapest source of electricity in history. That’s right, cheaper than coal or gas!

So, if you’re a company looking to reduce your carbon footprint and save money, investing in solar energy could well be a no-brainer.

Game Changer in the Space:

Tesla is one of the most well-known companies when it comes to renewable energy.

The innovative electric vehicle producer is also a leading solar panel manufacturer — they even make a solar roof now!

By investing in renewable energy, Tesla is not only reducing its carbon footprint but also creating sustainable products for consumers — working towards a greater good, I’d say!

Diversity and Inclusion

Next, let’s talk about diversity and inclusion. This topic is immense, dominating online forums, social media networks, and corporate boardrooms.

Many companies—especially, the big players—are starting to recognise that curating a diverse workforce is not only the right thing to do, but it’s also good for business.

Check out this ‘Think with Google’ post that outlines the positive impact of diversity within the workplace: more innovation and better financial performance.

But it’s not just about diversity; it’s also about inclusion. That means creating a workplace culture where everyone feels valued and respected, regardless of their background.

Some companies are even implementing policies like blind hiring and pay equity audits to ensure that everyone has an equal opportunity to succeed.

Game Changer in the Space:

Procter & Gamble (P&G) is a consumer goods company that has made a commitment to increasing diversity and inclusion within its workforce.

They have implemented a number of initiatives to promote diversity, such as their “Equality & Inclusion Action Plan”, which outlines specific goals and targets for increasing diversity and inclusion.

P&G has also implemented unconscious bias training for all employees and has a number of employee resource groups for underrepresented communities.

Away from internal initiatives, P&G is also committed to promoting diversity and inclusion through its advertising and marketing.

They have launched a number of campaigns that promote diversity and inclusivity, such as their “Like a Girl” campaign, which aims to empower girls and combat gender stereotypes.

In many ways, P&G’s commitment to diversity and inclusion goes beyond just meeting quotas or checking boxes — they recognise that diversity is good for business and are taking concrete steps to promote inclusivity both within their company and in their external messaging.

I’d even go as far as suggesting that Procter & Gamble is setting the gold standard amongst its industry peers.

Governance

Finally, let’s talk about governance, which is all about how a company is run and held accountable for its operations.

Good governance means having a board of directors that is diverse, independent, and has the best interests of shareholders and stakeholders (both internal and external) in mind.

It also means being transparent and accountable for your actions and taking steps to mitigate corruption and other unethical behaviour, which, sadly, is all too common across the world.

Some companies are even going beyond the basics of good governance and implementing things like stakeholder capitalism, where they prioritise the needs of all stakeholders, not just shareholders.

Game Changer in the Space:

Unilever is a company that is known for its commitment to good governance.

The company has a diverse board of directors and has implemented many policies to promote transparency and accountability.

For example, the company publishes an annual Sustainable Living Plan report outlining its progress towards sustainability goals, and they have also committed to disclosing its political lobbying activities (which is a great move towards preventing corrupt, money-making moves from a giant corporation).

Click here to see the summary of Unilever’s Sustainable Living Plan from 2010 to 2020.

It’s important to note that, while some organisations may treat it as such, ESG is not just a buzzword or a passing trend; they need to take seriously if they want to succeed in the long run.

By investing in renewable energy, promoting diversity and inclusion, and practising good governance, companies can not only make a positive impact on the world but also improve their bottom line.

So, if you’re a company looking to stay ahead of the curve, now is the time to start taking ESG seriously.