Fundamentals of ESG: Implementing ESG

Although ESG (Environmental, Social, and Governance) has become a major priority for many organizations, putting it into practice effectively remains a significant hurdle. A key difficulty lies in finding the right balance between achieving short-term profits and ensuring long-term sustainability. Many companies remain reluctant to fully embrace ESG practices, often due to concerns about costs or disruptions to their existing business models.

Another major issue is the lack of consistent standards for measuring and reporting ESG outcomes. Without a universal framework, it becomes difficult for companies to demonstrate the impact of their ESG efforts or benchmark themselves against peers.

Nevertheless, growing pressure from consumers, investors, and regulatory bodies is pushing organizations toward greater transparency and accountability. Over time, ESG adoption can not only help mitigate risks but also open doors to innovation and long-term growth.

What steps can companies take to address these challenges, and what successful strategies have you observed in your experience?

Re: Implementing ESG

by Prashant Yadav - Tuesday, 1 July 2025, 12:30 PM

Companies can start by weaving ESG into their core strategy, rather than treating it as a separate initiative. Setting realistic, measurable goals and being transparent about progress—even when things don’t go perfectly—builds trust with stakeholders. I’ve seen organizations succeed by starting small, like launching pilot projects or focusing on one area (such as reducing waste or improving diversity), and then scaling up as they learn what works.

Another effective approach is to engage employees at all levels, making ESG part of the company culture. Partnering with industry groups or using established reporting frameworks, like GRI or SASB, can also help companies measure and communicate their impact more clearly. Ultimately, the most successful companies treat ESG as a journey, not a checkbox—constantly learning, adapting, and aiming for genuine progress.

Re: Implementing ESG

by NINH VU HUNG - Monday, 21 July 2025, 10:07 PM

Measure and direct the right vision in 5 or 10 years

Re: Implementing ESG

by Rony Steeward Salaverry Vera - Friday, 15 August 2025, 10:37 PM

I agree that balancing short-term profitability with long-term sustainability is one of the biggest challenges in ESG adoption. From my experience, successful companies tackle this by integrating ESG into their core business strategy, rather than treating it as a separate initiative.

Key steps include:

Embedding ESG criteria into decision-making so it becomes part of everyday operations.

Engaging suppliers and partners to ensure the entire value chain aligns with ESG principles.

Adopting recognized frameworks such as GRI or SASB to create consistency in reporting and measurement.

Communicating transparently about both successes and areas for improvement, which builds trust with stakeholders.

One effective strategy I’ve seen is linking ESG performance directly to executive incentives, which drives accountability and ensures that sustainability targets carry the same weight as financial goals. Over time, this approach tends to foster innovation, improve efficiency, and deliver value for both shareholders and society.

Re: Implementing ESG

by Saran Vivekananth - Tuesday, 19 August 2025, 2:22 PM

The lack of consistent standards and reporting frameworks makes ESG implementation feel even more daunting, as Kassahun highlighted.

From what I’m learning, some companies have started addressing these challenges by:

Starting small: piloting ESG initiatives in one area (e.g. energy efficiency or employee well-being) and building momentum gradually.

Using trusted external tools or frameworks like GRI, SASB, or UN SDGs to guide how they measure and report progress.

Engaging stakeholders early: involving employees, investors, and suppliers in setting relevant ESG goals to ensure buy-in and realistic targets.