Corporate sustainability is a growing concern among investors who seek not only economic profit but also social good. What are the strategies you would employ in your organization to boost profitability through ESG implementation?
I would setup up an ESG roadmap to analyze gaps and set objectives such as improved labor conditions, enhance diversity and improved environmental policies.
Please share with the group what such a roadmap can look like.
I agree with this. This would be a good starting point, to be able to identify specific actions that the company can take to address each of the gaps. On the other hand, I think another way would be to focus first on areas where the company can readily see potential cost savings. Examples would be adopting green technology in the production process that is more energy efficient or uses less inputs; use solar energy; maybe improve production lines to save on time or energy; recycling; improving product design to use less resources without lowering quality; and other things.
Among the policies that we do have already, implementing additional policies related to culture fit in the company that will promise the good health and well-being of our employees (giving a day off for all the employees each quarter, giving flexibility in their shifts, balancing the time work-family, and encourage everyone to be free to suggest ideas and suggestions in the company and feels valuable, also encourage employees to volunteer in projects that will help communities that needs the service/product ). Also, by providing e-learning we can help to many people who don't have access to education, and by completing the materials we can offer employment to the best and continue with continuous learning. That will help to No poverty and Zero Hunger to the communities that are affected most. On long term plan we can achieve the Profit with purpose. Just I am really happy that we belong to company that follow all of these strategies and we are committed to the better tomorrow.
I like how you also relate to the SDGs, Sasho. Genashtim has employees in more than 21 countries. Obviously we cannot consider all cultures. So we spend a lot of time and effort to create a corporate culture so that everyone can relate to it.
And we are now in the middle of an initiative to move from livelihood to life (lifestyle). Will consider your suggestions.
Very pleased to tell you that after 13 years, Genashtim can finally really say that we have achieved profits with purpose. This is because only from 2021, we can say that we have significant profits. And it does appear to be going from strength to strength. The question is how we are going to convince other companies that not only does purpose lead to profit, but lack of purpose could progressively erode the financial strength of your business.
For me we have to set our goals first as on organization. Once we set the goals, we have to identify how each department in the organization can help contribute into these goals. We can participate on charitable activities and help on tree planting activities that can help our Environment. For S we can identify and address the needs of our people in the organization. Implement more trainings and activities within the organization that can improve diversity.
We do need to examine charitable activities. You all have watched Nash's video about this, which in this learning module.
I encourage everyone to share examples of charitable activities that are really worth doing, and which result in sustainable value.
For example, I have spoken to some orphanages that they wish they did not have to entertain companies sending people for a half day leading up to Christmas. The result is that they raise the expectations of the orphans, and then they suffer more sense of abandonment because they do not hear from these people again for the rest of the year. But the orphanages continue to accept these corporate visits because they leave some donations.
Let me start by sharing this example:-
Great contribution! Making difference by empowering the future generation through education. The best way to contribute sustainably.
We can start by reviewing and continuously fine tuning our overall goals to balance profitability and compliance to ESG. We can then focus on looking at opportunities to attract more customers by promoting our noble aims and our commitment to providing quality services.
Yes, I do feel that finally business with a purpose can use it to promote their products and services. You will learn more about this in Module 5 of this certificate.
By reviewing the different aspects of the workforce can give a better idea and expand the possible strategies that can be implemented
Good point. There is this documentary that hopefully explains this point well. And Vanessa is in it!
Watching from adversity to advantage documentary motivates me to make a difference in my and others' lives through my work.
In reply to ESG Business Institute
Re: Balancing profits and purpose
Firstly, I would set my well defined goals, objectives and budgets. Implement internal governance and practices which are legally compliant, socially transparent and socially responsible. I would source for business opportunities leveraging on my core values and expertise, build the right workforce through attractive C&B, personal & career development, succession plan to minimize turnover and maintain sustainability. I would probably monitor my performance closely, review my business plan and policies from time time.
I would set up a roadmap that we can show to internal and external stakeholders plus shareholders, so we stay accountable at all times and deliver what we promise.
Perhaps you can work with Jeremy to come up with an example of such a roadmap to share with the group.
I would keep track of of both economic profits and social goods quarterly and from there I would be able to determine where improvements and changes can be made.
Does sound logical, but it does take effort to collect data and make reports. And ESG is really about long term. Good to give this some thought.
There is much research that shows that big companies who are focussed on their quarterly numbers tend to be very short term in their thinking, and this can lead to window-dressing. And in the case of ESG, greenwashing.
There is much research that shows that big companies who are focussed on their quarterly numbers tend to be very short term in their thinking, and this can lead to window-dressing. And in the case of ESG, greenwashing.
For me, i would set goals first, then I would set up and shape the culture, i would first connect with all leaders from all deparments, and tell them how important it is to do business for good. then, i would ask them to came up with their own business plans to implements our goals and make every business decisions based of the balance of both of profit and ESG aspects.
Lastly, review is important part of the strategies. we have to review what we have done, find adjustments if needed and/or improvements if the strategies are working.
Lastly, review is important part of the strategies. we have to review what we have done, find adjustments if needed and/or improvements if the strategies are working.
In reply to ESG Business Institute
Re: Balancing profits and purpose
I would begin by assessing the importance of ESG issues to my organisation, ensuring that all stakeholders understand what ESG is and what it implies. It is necessary to understand the organization's priorities and the role of ESG in the larger scheme of things. The organisation must then determine the gaps and impediments to attaining the ESG goals, as well as the advantages to not only the organisation, but also to diverse stakeholders. The organization's vision and mission statements must incorporate ESG, and it must establish and publish an ESG strategic plan and framework. Additionally, goals and success metrics must be established, and progress must be documented, assessed, and communicated.
Well said, Dr. Ratneswary.
Again, I would constantly think about substance over form. With 25 years working in large multinational companies, I have seen too much of form over substance.
Again, I would constantly think about substance over form. With 25 years working in large multinational companies, I have seen too much of form over substance.
Agree with your point that organization should have a purpose and that should be clearly defined in vision and mission of the company. It is necessary for successful achievement of profit with purpose to ensure employees understand what ESG is, its benefits and how company implements it.
It's important for leaders to understand the societal impact of their business and to implement a measurable and transparent ESG strategy to improve it. In this approach, sustainable development goals can provide a useful roadmap.
For me, I will assess the current state, implementation, results and required changes. Then, set goals and the budget. Communicate everything with leaders, it's good for everyone to know that profits must be balanced with good cause and its long term positive impact.
After the idea is defined, every part of the company must take part in its implementation, that employees of any level are the owners of this activity, have the right to do it and are responsible for fulfilling its goals. By increasing everyone's competencies and focusing on implementing the ideas that have been set, the profits will return to the company followed by a good name. It is an added value to promote the company to the community, potential customers, and investors.
Well said, Vera.
If I may add that very often doing the right thing does not have to come at a cost.
In fact there is already emerging evidence that ESG practices can produce cost savings.
Just take a simple example of energy. If you had all along been taking measures to ensure that you are energy efficient, you already can get savings, especially with energy prices sky-rocketing now.
And image if you had switched to renewable energy.
I kick myself that I did not already change to an electric vehicle. Petrol prices have doubled in Australia from a couple of years ago, and some places in the world, the pumps are empty.
If I may add that very often doing the right thing does not have to come at a cost.
In fact there is already emerging evidence that ESG practices can produce cost savings.
Just take a simple example of energy. If you had all along been taking measures to ensure that you are energy efficient, you already can get savings, especially with energy prices sky-rocketing now.
And image if you had switched to renewable energy.
I kick myself that I did not already change to an electric vehicle. Petrol prices have doubled in Australia from a couple of years ago, and some places in the world, the pumps are empty.
The strategies I would use are managing for a low carbon future as research demonstrates that it improves financial performance. As well as improveing risk management and more innovation.
Agree, and we have some examples of this in this Module. I would appreciate if any of you can share other research that you have come across that supports this.
among the first things we can do internally to boost profitability is to reduce costs and expenses, and the utilities i.e. water, electricity and waste managements are the areas that we shall focus and analyse how to improve energy efficiency and identify areas for reduction and improvements. And by enhancing energy efficiency, that will help our environment and society as well.
Yes, those are some of the easy wins, as also pointed out by Wen Yi. Very often there is little or no costs to doing this. Perhaps the group can make some suggestions.
Let me make the first one. Motion sensors today are so inexpensive and easy to install. Put them in places that do not constantly have human traffic, so that lights are triggered only when there is motion. And energy saving bulbs are also very inexpensive today.
Let me make the first one. Motion sensors today are so inexpensive and easy to install. Put them in places that do not constantly have human traffic, so that lights are triggered only when there is motion. And energy saving bulbs are also very inexpensive today.
In reply to ESG Business Institute
Re: Balancing profits and purpose
A relook into organization's corporate governance, risk management, strategies, reporting to integrate ESG key points into business strategies.
Definitely. Can we have some specific suggestions from the group please.
We can start with implementing sexual harassment and whistle-blower policies?
We can start with implementing sexual harassment and whistle-blower policies?
As for me, I think conducting an initial assessment among the employee and some of the existing clients and beneficiaries and reviewing the efficacy of our product and services help to improvise the current ESG implementation.
It feels to me that the most “straightforward” steps would likely be related to saving- be it water, energy or raw materials, strategies that cut down use can definitely lead to better profitability if done well. The other areas required more nuanced changes - for instance paying a decent wage, giving back to communities - those do not work in a vacuum and to create profitable change, we’d need to be thoughtful and patient.
Giving to communities can be tied back to business strategy. For example Johnson & Johnson gives away its products to very low cost communities. Over time, as these low cost communities develop, they become a market which "grew up" with J&J products.
In our organisation, there needs to be a shift in paradigm. Transparency and accountability should be the primary objective of the organisation. If there is openers and responsibility within, there would be a seamless effect on the organisation in dealing with its work and customers.
On an operations standpoint, we could look into mapping the company's supply chain and operations by aligning SDGs in the departments. By breaking down certain goals into smaller measurable means, we can better monitor how ESG can translate to our people's productivity and boost profitability.
Moreover, being in the training and education sector, we could also expand our reach to other like-minded organizations perhaps on a grassroots level. As advocates of ESG, it would be our contribution to society to provide ESG education to smaller companies by developing a revenue and impact framework that specifically caters to this sector.
Moreover, being in the training and education sector, we could also expand our reach to other like-minded organizations perhaps on a grassroots level. As advocates of ESG, it would be our contribution to society to provide ESG education to smaller companies by developing a revenue and impact framework that specifically caters to this sector.
The strategies I would employ is first and foremost to establish the social mission and educate all the employees within the organization to align their purpose of work to this. This could be used as kind of a "shared value" for everyone and encourage them to take part in any CSR campaigns organized by the organization. Due the fact that ESG can easily be confused and misunderstood of the concept, secondly I would provide in-depth education of ESG to the employees. As the education is instilled, it gradually molds the purpose of each employee into a single "shared value", which in turn has a direct and indirect positive effect on workforce morale, productivity and finally of course, profitability as education helps the build-up of character composure. This composure will provide more room and opportunities for other ESG strategy to take place. It may perhaps surprisingly make it easier for them to be implemented too.
Identify business opportunities inspired by the organisational purpose.
Be one of the many great examples of eco-friendly or sustainable offices. Improve access to resources and attract B2B and B2C customers by developing stronger relationships with the community and the government. For example, organisation of programmes or events with minimal resources to save cost and carbon footprint reporting
Establishing the fundamentals (i.e. framework, roadmap, action plans - communication, transformation) that are scalable and integrating the fundamentals with company's businesses is the key strategy to chart corporate sustainability in the longrun.
Implementing Environmental, Social, and Governance (ESG) strategies in your organization can indeed lead to enhanced profitability and long-term sustainability. Here are some strategies to consider:
1. Integrate ESG into Corporate Strategy
2. Strong Governance and Transparency
3. Enhance corporate governance practices to foster transparency, ethical decision-making, and accountability.
3. Robust governance practices improve investor trust and attract socially responsible investors.
4. Stakeholder Engagement.
5. Sustainable Supply Chain.
6. Resource Efficiency and Conservation.
1. Integrate ESG into Corporate Strategy
2. Strong Governance and Transparency
3. Enhance corporate governance practices to foster transparency, ethical decision-making, and accountability.
3. Robust governance practices improve investor trust and attract socially responsible investors.
4. Stakeholder Engagement.
5. Sustainable Supply Chain.
6. Resource Efficiency and Conservation.
Increasing profitability through ESG implementation entails incorporating sustainability practices into business operations in ways that create both financial rewards and a positive impact. Here are strategies to consider:
1.Stakeholder Engagement by engaging with stakeholders to understand their values and concerns related to ESG issues.
2.Measurement and Reporting by establishing clear metrics and key performance indicators (KPIs) to track the organization's progress in implementing ESG initiatives.
3.Collaboration and Partnerships by partnering with organizations that share your values and goals
4. Incorporate ESG into Business Strategy by aligning sustainability goals with your core objectives to ensure they are woven into your organization's DNA
1.Stakeholder Engagement by engaging with stakeholders to understand their values and concerns related to ESG issues.
2.Measurement and Reporting by establishing clear metrics and key performance indicators (KPIs) to track the organization's progress in implementing ESG initiatives.
3.Collaboration and Partnerships by partnering with organizations that share your values and goals
4. Incorporate ESG into Business Strategy by aligning sustainability goals with your core objectives to ensure they are woven into your organization's DNA
In reply to ESG Business Institute
Re: Balancing profits and purpose
There are many ESG strategies available for implementation in business performance; the crucial aspect is ensuring alignment with the three core dimensions of sustainability: social, environmental, and governance.
Here are a few strategies I would contemplate:
1. Identify the most suitable ESG practices aligned with the company's industry.
2. Ensure transparent and accessible disclosure of the company's environmental, social, and governance (ESG) performance, while also actively seeking input and feedback from stakeholders. Consulting all relevant stakeholders is crucial as well. This approach will facilitate the examination of topics and issues that hold significance for these groups, offering valuable insights to refine the corporate ESG priorities.
3. Connect the appropriate professionals to the organization. Collaborating with all employees is vital, fostering dialogue and education when implementing ESG strategies.
4. Prioritize Transparency and Accountability.
5. Crafting an ESG strategy entails formulating and executing specific objectives, targets, and initiatives to address environmental, social, and governance concerns within the company's operations. After implementing the strategy, it is imperative to monitor, report on, and communicate its achievements. This aids in showcasing progress, pinpointing areas for enhancement, and involving stakeholders in comprehending the company's ESG performance.
6. Continuously measuring and adapting ESG strategies is pivotal for responsiveness to evolving circumstances. Given that the global and business landscape is subject to change, including new regulations, evolving concerns of interest groups, investor expectations, and other external factors, there might be a need to reassess and modify ESG strategies. This ongoing process empowers companies to stay attuned to shifting expectations and uphold their dedication to sustainability and ethical business practices.
Here are a few strategies I would contemplate:
1. Identify the most suitable ESG practices aligned with the company's industry.
2. Ensure transparent and accessible disclosure of the company's environmental, social, and governance (ESG) performance, while also actively seeking input and feedback from stakeholders. Consulting all relevant stakeholders is crucial as well. This approach will facilitate the examination of topics and issues that hold significance for these groups, offering valuable insights to refine the corporate ESG priorities.
3. Connect the appropriate professionals to the organization. Collaborating with all employees is vital, fostering dialogue and education when implementing ESG strategies.
4. Prioritize Transparency and Accountability.
5. Crafting an ESG strategy entails formulating and executing specific objectives, targets, and initiatives to address environmental, social, and governance concerns within the company's operations. After implementing the strategy, it is imperative to monitor, report on, and communicate its achievements. This aids in showcasing progress, pinpointing areas for enhancement, and involving stakeholders in comprehending the company's ESG performance.
6. Continuously measuring and adapting ESG strategies is pivotal for responsiveness to evolving circumstances. Given that the global and business landscape is subject to change, including new regulations, evolving concerns of interest groups, investor expectations, and other external factors, there might be a need to reassess and modify ESG strategies. This ongoing process empowers companies to stay attuned to shifting expectations and uphold their dedication to sustainability and ethical business practices.
In my POV, we would increase profitability through ESG adoption by creating a thorough strategy in line with our corporate objectives. This entails encouraging innovation for environmentally friendly products, transparently involving stakeholders, minimising risks, luring top personnel, and emphasising long-term profit development. Setting concrete objectives, streamlining our supply chain, and placing a strong emphasis on openness in reporting progress will all help to further solidify our commitment to ESG, boosting profitability while having a beneficial influence on society and the environment.
In reply to ESG Business Institute
Re: Balancing profits and purpose
I would summarize in four key points:
First, prioritizing ESG integration into the organization's business plan is essential. This entails identifying opportunities for sustainable practices that improve cost savings and operational efficiency, such as adopting energy-efficient technologies and waste reduction methods.
Second, engaging with stakeholders, including customers, employees, and communities, is a crucial step in building brand loyalty and attracting socially conscious customers.
Third, innovation plays a pivotal role in testing new methods and technologies to enhance operations. Exploring sustainable products, services, and processes can create fresh revenue streams and market prospects while reducing costs in the short and long term.
Finally, utilizing ESG data and indices to accurately monitor performance toward sustainable targets optimizes the impact of new initiatives. This data serves as valuable evidence to address concerns of greenwashing, blue washing, or pink washing.
First, prioritizing ESG integration into the organization's business plan is essential. This entails identifying opportunities for sustainable practices that improve cost savings and operational efficiency, such as adopting energy-efficient technologies and waste reduction methods.
Second, engaging with stakeholders, including customers, employees, and communities, is a crucial step in building brand loyalty and attracting socially conscious customers.
Third, innovation plays a pivotal role in testing new methods and technologies to enhance operations. Exploring sustainable products, services, and processes can create fresh revenue streams and market prospects while reducing costs in the short and long term.
Finally, utilizing ESG data and indices to accurately monitor performance toward sustainable targets optimizes the impact of new initiatives. This data serves as valuable evidence to address concerns of greenwashing, blue washing, or pink washing.
To boost profitability through ESG implementation, consider the efficiency improvements, the innovation and product development, risk management, the brand enhancement and employee engagement.
I could employ strategies related with culture into the organization and out of organization.
Strategies into the organization: I mean that businesses could creat a benefits plan that could include assistance for families, health assistances, educational assistances, financial assistances, pets assistance, growth inside the company.
Strategies out of workplace: volunteering programs for emplyees in special places or towns; benefit programs for citizens, profit for social development; conservation programs.
Strategies into the organization: I mean that businesses could creat a benefits plan that could include assistance for families, health assistances, educational assistances, financial assistances, pets assistance, growth inside the company.
Strategies out of workplace: volunteering programs for emplyees in special places or towns; benefit programs for citizens, profit for social development; conservation programs.
My organization can use our industry prominence to be a first mover in the new energy spaces, allowing us to be an active participant in moving our customer base from traditional to new energy sources.
In order to increase profitability through the application of ESG, I would advise coordinating ESG factors with our primary business plan and smoothly incorporating sustainable practices into regular business operations.
We can also innovate ESG offerings by investigating and developing sustainable goods and services in response to the growing need for socially and ecologically conscious solutions.
We can also innovate ESG offerings by investigating and developing sustainable goods and services in response to the growing need for socially and ecologically conscious solutions.
Having ESG related goals /priorities for the long term growth of the organisation.
Based on the Business vision, align business objectives to 1 or 2 SDG and assess the need of redisigning Goverance process.
Finding a balance between making money and doing good requires a new way of thinking. Fred Keller explained that businesses need to pursue both goals at the same time, rather than choosing one over the other. This “productive tension” encourages innovation and long-term success. Amy Newman added that leaders who are self-aware and humble are better at managing this balance. These traits help leaders recognize their strengths and areas for improvement while focusing on their team and the bigger picture. By combining financial success with social responsibility, companies can thrive in a way that benefits everyone.
Corporate sustainability is indeed a crucial focus for modern investors. To boost profitability through ESG implementation, I would prioritize strategies such as integrating renewable energy sources to reduce operational costs and carbon footprint, enhancing supply chain transparency to build trust and loyalty, and investing in community development projects to foster goodwill and brand reputation. Additionally, promoting a diverse and inclusive workplace can drive innovation and employee satisfaction, ultimately leading to better financial performance. These steps not only align with ESG principles but also create long-term value for both the organization and its stakeholders.
Boosting profitability through ESG implementation requires strategies that align sustainability with financial performance. Here are actionable strategies that we can implement as an orginization:
1. Energy Efficiency and Renewable Energy Integration
- Why? Lower operational costs and reduce carbon footprint.
- How? Implement energy-efficient technologies and renewable energy sources like solar or wind power to decrease reliance on fossil fuels. This also appeals to investors looking for climate-positive actions.
2. Sustainable Resource Management
- Why? Enhance efficiency, reduce waste, and ensure regulatory compliance.
- How? Use advanced technologies like water recycling systems and low-waste extraction methods to optimize resource use. Showcase these efforts in ESG reports to attract environmentally conscious investors.
3. Innovative Products and Services
- Why? Tap into new markets and diversify revenue streams.
- How? Develop uranium products or services tailored to the growing demand for cleaner energy, such as nuclear technology for decarbonization initiatives.
4. Stakeholder-Centric CSR Initiatives
- Why? Build goodwill and a social license to operate.
- How? Invest in local community development, such as education and healthcare programs, which can enhance productivity and loyalty among the workforce and surrounding communities.
5. Strengthen ESG Reporting and Transparency
- Why? Attract ESG-focused investors and build trust.
- How? Align disclosures with recognized frameworks like GRI or TCFD to highlight ESG-driven cost savings, risk mitigation, and long-term value creation.
6. Green Supply Chain Optimization
- Why? Reduce costs and improve sustainability performance.
- How? Work with suppliers to adopt greener practices, reducing emissions and waste across the value chain. This can also strengthen partnerships and enhance your reputation.
7. Employee Engagement in ESG Goals
- Why? Increase productivity and innovation.
- How? Provide training on ESG best practices and incentivize employees to contribute ideas that align with sustainability and profitability objectives.
8. Access to ESG Financing
- Why? Lower borrowing costs and increase funding opportunities.
- How? Leverage ESG performance to qualify for green bonds, sustainability-linked loans, or other ESG-focused investment vehicles.
These strategies ensure that ESG efforts not only fulfill social and environmental responsibilities but also drive economic growth.
1. Energy Efficiency and Renewable Energy Integration
- Why? Lower operational costs and reduce carbon footprint.
- How? Implement energy-efficient technologies and renewable energy sources like solar or wind power to decrease reliance on fossil fuels. This also appeals to investors looking for climate-positive actions.
2. Sustainable Resource Management
- Why? Enhance efficiency, reduce waste, and ensure regulatory compliance.
- How? Use advanced technologies like water recycling systems and low-waste extraction methods to optimize resource use. Showcase these efforts in ESG reports to attract environmentally conscious investors.
3. Innovative Products and Services
- Why? Tap into new markets and diversify revenue streams.
- How? Develop uranium products or services tailored to the growing demand for cleaner energy, such as nuclear technology for decarbonization initiatives.
4. Stakeholder-Centric CSR Initiatives
- Why? Build goodwill and a social license to operate.
- How? Invest in local community development, such as education and healthcare programs, which can enhance productivity and loyalty among the workforce and surrounding communities.
5. Strengthen ESG Reporting and Transparency
- Why? Attract ESG-focused investors and build trust.
- How? Align disclosures with recognized frameworks like GRI or TCFD to highlight ESG-driven cost savings, risk mitigation, and long-term value creation.
6. Green Supply Chain Optimization
- Why? Reduce costs and improve sustainability performance.
- How? Work with suppliers to adopt greener practices, reducing emissions and waste across the value chain. This can also strengthen partnerships and enhance your reputation.
7. Employee Engagement in ESG Goals
- Why? Increase productivity and innovation.
- How? Provide training on ESG best practices and incentivize employees to contribute ideas that align with sustainability and profitability objectives.
8. Access to ESG Financing
- Why? Lower borrowing costs and increase funding opportunities.
- How? Leverage ESG performance to qualify for green bonds, sustainability-linked loans, or other ESG-focused investment vehicles.
These strategies ensure that ESG efforts not only fulfill social and environmental responsibilities but also drive economic growth.
Its benefit is beyond balance.hence,this interesting title teaches me alot especially towrads contributing sustainablity