ESG is becoming more common by the day and impacting many companies over the years.
The ESG (Environmental, Social and Governance) is a set of principles and practices aimed at assessing the impact of a company on society and the environment, in addition to its corporate governance.
The origin of ESG
ESG emerged in the 1970s amid growing concerns about the environment and the role of companies in society. However, its popularity has only started to grow significantly in the last decade, with the growing awareness of environmental and social issues, in addition to the rise of corporate responsibility (CSR).
Nowadays, People and companies are more aware and aware of how their actions affect everything and everyone around them. ESG not only helps companies attract a more diverse workforce, but it also helps them make a positive impact on the world. Companies are changing business models and adopting sustainable strategies that are profitable and inclusive of all parties. However, to get the maximum benefit from ESG, companies need to align their strategies correctly and incorporate all teams to make the organization successful in its implementation.
ESG can’t just be Cause Marketing
Marketing has at its root a direct causal relationship – desire, sale, product, transaction, etc. ESG strategies, on the other hand, talk about theory of change, systemic changes, social impact, and need depth, consistency and time with society as the main beneficiary, not a brand.
The need to develop environmental, social, and corporate governance purposes and values are one of the greatest transformational challenges marketing has ever faced.
Until recently, marketing’s role was primarily to help drive growth, profits, and customer lead generation by building a company’s brand and communications. These factors, while important, are no longer dominant.
Brands and companies have implemented ESG practices to compensate for the impact they have on the communities in which they belong, and more than an element in the marketing strategy, ESG must serve as a support for decision-making that takes into account the positive impacts and negative effects generated by companies.
Making ESG effective within an institution, establishing a cultural change, applied to the marketing strategy, brings results for companies and for everyone who benefits from these practices.
In addition, clear and defined ESG practices convey a positive message about a company’s image to stakeholders, employees, and potential customers.
More than Marketing, Marketing with purpose!
The path to this challenge is becoming clearer every day, and it begins with the development and adoption of values and purposes in everything that is proposed, planned, and executed.
The defined purpose and values must provide an overarching social and environmental mission that people can understand and adhere to. To help embody and promote purpose/values, marketing strategies are key to showing – internally and externally – how they link to a company’s values and specific ESG goals.
Always having clear ways on how to improve your brand positioning and include issues so essential for the community and the planet should be part of the marketing plan these days.
Some benefits of ESG in marketing strategy:
- Directly impacts society
- Attracts and retains talent
- Reduces risks
- Facilitates access to new markets
- Fosters the company’s purpose and values
- Builds customer loyalty
- Strengthens brand credibility
- Engages the community as a whole
By using ESG as a marketing tool in a responsible and transparent manner, companies can highlight their socially responsible leadership and attract customers, investors, and employees committed to sustainability.
Keeping in mind the importance of ESG for the business is, in addition to improving processes, a way to prepare a company for a near future of innovations.