The case for ESG

Is the ESG/Sustainability hype over?

I am getting frequently asked by business owners if ESG was a hype and worth spending time on.

My reply is 2 ways. If you run your business by what is on the geopolitical agenda - then ESG definitely dropped down the priority list - and the urgency to implement a full blown ESG strategy can be parked for later (but it will come back). But, if you operate your business in a responsible way, ESG is a hot topic in the boardroom and it is not losing steam.

Sustainability as a principle has been with us since the start of civilization. We learned to calculate how much an acre of land can produce. How much water we have available. How many workers we need. There are limits to our resources - and clean water and air are a big part of it. Use it wisely

You need to see ESG as a resource management system - where you get to measure the impact your business has on everything it is connected to.

It helps you to deeply understand and demonstrate why clients need to do business with you, why talent wants to work with you, and why investors want to own a piece of your business.

ESG is not expensive - it can improve your margin and create new revenue streams

ESG is not a hype - and it should be part of running your business - just like accounting is today

Where to start

ESG can be  implemented in stages - and you can start small, using a spreadsheet to calculate your energy emissions. Or use a starter module from a dedicated platform like Greenly.

If you already have a sustainable strategy, we can start to bring all the data into the platform, using APIs and AI to fast-track the collection and the insights.

We will be supporting you with expertise and solutions

Let me show you some examples of insights from an ESG strategy

Life Cycle Analysis - LCA

Products and services create their own carbon footprint. But for most companies, some 80% of the emissions are caused by their supply chain. LCA’s give you a clear picture of the highest contributors amongst your supply chain, the alternatives in the industry and how this can impact your footprint. Once you have the LCA - you have the clarity. This also counts for your client - who you supply to. If this is a b2b, you will be more attractive if you can demonstrate a lower LCA of your product or services than your competitors. Greenly has a large database of LCA’s and templates to create your own.

Calculators can be created for the purchase department - that will automatically add the emissions from products and services. 

You can create score card of your suppliers

Example of supplier rating, using spend vs emissions (from LCA) and compare this against the emission target

For more information you can read the article on Supplier Management policy https://greenly.earth/en-us/blog/company-guide/our-guide-to-supplier-management-policy