As cyber incidents, global climate change concerns, and international supply problems take over, economic holes and social justice movements are quickly becoming catalysts in increasing adoption rates.
While finding ways to boost productivity is important, ESG or environmental, social, and governance is a unique framework gaining extreme popularity due to conscious consumerism spikes. As a result, it's becoming essential for businesses to set up an ESG plan to meet this new increasing demand in the market.
With that said, let's look into some of the most impactful ways that the Service Now ESG framework can benefit businesses.
Companies that adopt the ESG framework have a competitive advantage in the market. Surveys conclude that almost 70% of American consumers are prepared to spend more with businesses that stock eco-friendly and sustainable products.
With this, ESG metrics are extremely important to employees, regulators, lenders, and, of course, consumers. Companies that improve work conditions and find eco-friendly ways to give back to the community while promoting diversity have stronger and more attractive brand images.
Investors and lenders are choosing businesses with the ESG framework. With almost 50% of investors finding sustainable investment options more attractive, it's worthwhile to consider implementing the ESG framework.
Recent events such as the pandemic, economic crisis, and even the Russia-Ukraine war have forced lenders to consider sustainable companies while slowly weeding out harmful enterprises that rely on outdated practices.
The ESG framework makes any business more appealing to lenders, but beyond this factor, the framework will also improve financial performance in other ways.
More minor changes for sustainability can enhance ROI and strengthen a business's bottom line. These smaller efforts include things like going paperless, opting for energy-efficient upgrades, and recycling.
With ESG programs, companies need to track metrics like energy consumption, waste, and waste treatment, among others. These metrics all offer the opportunity for businesses to reduce costs.
Customers are not just more likely to support sustainable brands, they are also more likely to remain loyal to such brands. The vast majority of consumers align their shopping habits with brands that uphold their own virtues. And since the pandemic, consumers have become more aware of how their consumption decisions impact the planet.
Therefore, companies that choose to rely on the ESG framework are more appealing to consumers. With this benefit, your business's number of brand-loyal buyers will increase, which adds to a sturdy bottom line through increased profits.
When implementing the ESG framework, businesses must welcome various changes to comply with the new standards. As companies switch to sustainable goals, business operations become sustainable.
Integrating the ESG framework is a beneficial decision for businesses in all industries. Instead of overlooking the new demand for sustainability in the market, it's crucial to adopt strategies that keep your business relevant in the modern world. Nevertheless, it's essential to introduce this framework with care by planning an implementation process.
