For many people it seems like a novelty, but the acronym ESG appeared in the UN publication "Who Cares Wins?" in 2004. In other words, it's been almost 20 years and we've finally reached the point where the ESG movement is experiencing a cascading effect, with all the potential to be a virtuous cycle capable of transforming the world.
What is this? What practices are companies already adopting? Could missing out on this trend be risky for your business? Let's talk a little more about it below!
News that isn't news
As we mentioned above, ESG didn't just emerge. The World Bank, financial institutions from various countries and the UN Global Compact met to discuss this trend in 2004.
Almost 20 years have passed and taking care of ESG (Environmental, Social and Governance) issues is increasingly relevant. After all, during this time the problems have also increased. The lack of commitment to preserving the environment is one of the most worrying facts, which confirms the importance of people and companies taking new measures as soon as possible.
There's still a lot to be done, even if the moves have already begun. In practice, the ESG is a novelty that isn't exactly new. Is that a problematic warning? Yes, because it also means that a lot could already have been done to improve the situation of the planet and society, while at the same time we are faced with the great opportunity to do it now. In short, we need to see this urgency more than ever.
How the market moves in a cascade effect
Social and environmental engagement had already been attracting the attention of consumers, but the pandemic has also contributed to increasing the importance of committing to social, environmental and, of course, health and well-being causes.
Consumer pressure for brands committed to ESG and natural market competition are two forces that should boost the race for social and environmental responsibility. Companies need to stand out and meet their customers' wishes, right? A large part of business success depends on establishing a good relationship with your audience and sharing values is one of the ways to do this. But of course it's no use just positioning yourself and not acting.
The aim should be to create a community of people and businesses committed to the "ESG cause", who prioritize relationships between themselves. How so? We're talking about including in your strategies the intention to integrate sustainability and build relationships with stakeholders who do the same, forming an ecosystem.
The mission to transform the world will be made easier as more and more companies move in this direction, creating links with those who share the same goals. In turn, having an increasingly aware and selective public will also help with the cascade effect - which works like a chain reaction or what we call a virtuous rather than vicious cycle.
What can you do?
Watching all this happen is good, buteven betteris taking part in the transformation towards a more sustainable economy. In fact, this is something that is increasingly no longer seen as a differential, but as a necessity.
As citizens, we need to rethink our attitudes on a daily basis and think more about the collective. Companies, on the other hand, should create a strategic plan focused on ESG, taking advantage of the opportunity to generate a positive impact and stand out in the market before it's too late.
Did you know that we at Abundance can help you throughout this process? The Abundance Token is a practical and affordable solution for evolving your ESG and can make your business a benchmark for sustainability, abundance and success.