Environmental, Social, and Governance, also referred to as ESG, can simply be thought of as an evaluation of a firm or company’s focus and prioritization on things like environmental and social factors. ESG criteria are basically a set of different standards that enable the evaluation of a company’s performance relating to these factors.
ESG criteria enable us to evaluate a company’s focus on nature and truly see just how ‘green’ a company is. Alongside this, these criteria also enable us to define how a company manages relationships with, and between, its employees and contractors. ESG also plays a key role in helping evaluate a company’s leadership, shareholders, and various other things such as internal controls.
The Importance of Incorporating ESG into a Business Strategy
ESG certainly wasn’t necessarily a well-known term a few years back. In recent times, however, these criteria are becoming increasingly popular and are becoming the go-to way for various investors and interested parties to get a more thorough understanding of a company that they’re interested in. Industries can definitely benefit from implementing these criteria into their different brands. The relocation industry, in particular, could tremendously benefit from ESG as well.
Over the years, companies and industries have come to realize the variety of benefits that come with incorporating ESG into their structure and some of the more noteworthy benefits are as follows:
Attracts More Customers and Talented Workers
The goal of pretty much every single industry and company, including the relocation industry, is to attract as many customers as they possibly can. ESG is something that can help companies do exactly this. In a world where people are rightly growing more concerned about the environment, there’s no doubt that practices that focus on sustainability can help attract more customers.
European investors have invested more than 120 billion Euros into sustainable investment options since 2019. This goes to show that any company that’s able to demonstrate their concern for the environment by doing tasks like reducing energy and water consumption and slicing operating costs is almost certain to attract more customers than a similarly competitive company in their industry that operates without ESG criteria. For companies in the relocation industry, this means that they’ll be able to increase their mobility by a worthwhile amount.
Of course, other than the customers, ESG-focused companies are also able to attract the best possible talent. As mentioned earlier, people are growing more concerned about the environment with each passing day and this is why many talented individuals would prefer to be at a company with properly implemented ESG as this will enable these workers to have an impact while also playing their part to remedy our planet.
Increased Productivity and Credibility
Perhaps one of the biggest benefits of implementing ESG within a brand is the credibility that it helps foster. Among the most significant concerns of people nowadays are things like caring for the environment and creating atmospheres in which people can come together and function at their best. ESG is something that enables industries and companies to achieve these exact goals thereby increasing their credibility by a considerable amount.
Through ESG, a company is not only able to reduce its footprint on the world but it’s also able to create a much more desirable work environment for every single one of its employees and this leads to workplaces that are far more productive. Any workplace or company that’s properly incorporated ESG into their system is almost certain to have environments and atmospheres in which everyone can perform at their fullest. There’s also rarely, if ever, any turbulence that can hinder day-to-day operations and this is absolutely something that the relocation industry could benefit from.
Compliance and Governmental Support
Incorporating ESG is something that often enables brands to automatically comply with any regulatory restrictions that surface. As mentioned earlier, we’re growing more concerned about our environment every single day which is why new regulations are often passed that require companies and industries to be ‘greener’ in their practices in order to comply with the regulations. Companies who’ve already invested in ESG are able to benefit from this tremendously as they already comply with the regulations. This, in turn, allows a company or brand to foster goodwill with governments which can lead to some truly impactful support later on.
The aforementioned advantage is beneficial for the relocation industry because mobility is critical in this industry and being compliant while having government support is something that can absolutely aid a company’s mobility, be it local or global.
Some Approaches a Company Can Take to Have ESG DNA Ingrained
Incorporating ESG within a company that isn’t already onboard can certainly be a daunting task. Thankfully, there are different approaches that companies can take in order to have ESG ingrained within their infrastructure.
Advocacy and Awareness
Whether it’s in the relocation industry or within a company from an entirely different industry, one of the biggest steps that any organization to take in adopting ESG is to actually advocate for it and raise awareness. There are multitudes of advantages to adopting ESG practices such as increased mobility for those in the relocation industry and bringing awareness to these advantages is the first step in helping incorporate ESG within a brand.
Involving the Board
Implementing ESG is something that requires large-scale changes and this is something that can only be accomplished effectively if the board of a company is actively involved. A company’s board is able to evaluate different approaches, metrics, and strategies to come up with effective methods to incorporate ESG and create value for their company. The relocation industry would see this increased value in the form of increased mobility.
How Moovaz Can Help
At Moovaz, we value ESG greatly and are fully aware of the values that it brings to various industries and the relocation industry specifically. As a relocation platform, we constantly strive for sustainability in the industry. Partner with Moovaz today and let us help your business adopt ESG practices which, in turn, will propel their companies as well as the entire industry forward into a brighter era!