Reduce risk with corporate sustainability training (ESG)
The 2022 Edelman Trust Barometer revealed that we are increasingly looking toward the corporate world to address societal issues as the ability of corporations to champion and create positive change becomes more evident.
Investors, consumers and prospective employees overwhelmingly choose businesses according to their values and beliefs. These sentiments demonstrate why ESG (Environment, Social and Governance) is now ingrained in the business practices of major global enterprises. However, ESG is not only a driving force behind positive societal change, but it also creates value.
Investing in corporate sustainability training will provide an understanding of how an organisation operates in ecological, social and economic environments - creating value and fostering company longevity in a number of ways.
Reduces risk
Corporate sustainability is synonymous with lower risk and greater profitability. Organisations that have completed an ESG training course and have implemented the strategies are less vulnerable to regulatory, political and reputation risks. Less risk leads to less volatile profit and cash flow, making ESG companies more attractive to would-be investors.
Access to capital
Considering the evidence supporting sustainability as a key aspect of performance, it is no surprise that ESG is informing investor activity. In recent years global investments in sustainable companies have accelerated at unprecedented levels – from 78% in 2017 to 97% in 2018. Strong ESG management attracts new and reliable sources of investments – drawing both institutional and passive investors. On the contrary, poor ESG disclosure or performance has been shown to reduce investment exposure or lead to complete disinvestment.
More satisfied and productive employees
Studies have shown that the higher the ESG rating, the higher employee retention, satisfaction and productivity. Corporate sustainability connects an organisation with a deeper purpose, which gives employees a link to something bigger and more important than their individual role. Further, a satisfied employee stays in their position longer, works harder and aims to produce better results for their employer.
Reduce cost and improve investment return
Through an ESG framework, key metrics like energy and water consumption can be tracked, and programs implemented to minimise unnecessary expenditures. Costs may also be reduced when a systems thinking approach is adopted; for example waste byproducts may be repurposed and sold on, creating new revenue streams. Investing in an ESG training course and sustainable practices will continue to reduce costs in the future.
Top-line growth
Corporate sustainability is directly linked with top-line growth through better access to resources such as finance for example, as well as the positive benefits which flow from demonstrating sustainability to meet growing market demand. Governments and regulatory bodies are more likely to trust companies with strong ESG practices, granting them access to resources, approvals and licenses, allowing businesses to embrace new opportunities.
Both B2B and B2C customers are attracted to sustainable practices, with the vast majority willing to pay more for green products compared to non-green alternatives. This trend will continue to gain traction as consumer knowledge grows in this area.
Ease regulatory pressure
Companies trusted by governing authorities are not only rewarded through access to resources, but they are also less likely to encounter government and regulatory interventions. Without a strong ESG strategy, companies could face fines, penalties and point of sale and advertising restrictions. Regulatory interventions can directly impact revenue, with the latest research indicating that more than one-third of corporate profits are at risk. Conversely, corporate sustainability leads to greater regulatory freedom and access to government subsidies.
Reduce risk & transition to a more profitable and sustainable future.
ESG Fundamentals builds ESG capability in business leaders via highly engaging elearning, to reduce risk and increase long-term business value.
Be market leaders in the sustainability transition. Request a free demonstration today or get in touch via 1300 086 692.
