The Next Generation is about Values.
Its always the right time to explore ESG which can help your business thrive. By leveraging the utmost out of your talent, creating new and innovative products, and providing employees with a sense of satisfaction you are building a company and brand that will endure.
Environmental practices create a differentiated value proposition to consumers, who are increasingly turning towards sustainably and ethically produced products. Sustainability outranks price in a purchasing decision in individuals under 45. Environmental practices can also support cost-saving measures in the long term, creating value for the company.
“Only 37 percent of millennials believe business leaders make a positive impact on the world and more than a quarter (26 percent) said they don’t trust business leaders as sources of reliable and accurate information” Deloitte Millenial Survey 2019
Social practices enable companies to leverage their high performing talent to create more value for the company using fewer resources. Social practices foster a positive culture, prevent burnout and high turnover, and build a dedicated loyal workforce. Social practices can also support the local communities in which they operate, creating employment, supporting locals in the form of social responsibility initiatives, which creates value for a young consumer. Local job creation and support is the number one purchasing factor in consumers under 45.
“Global sustainable investment now tops $30 trillion. The acceleration has been driven by heightened social, governmental, and consumer attention on the broader impact of corporations. The magnitude of investment flow suggests that ESG is much more than a fad or a feel-good exercise.” McKinsey, 2019
Governance practices on the board and management level can help reduce riskier company. Correlation evidence suggests that fraud is reduced by 14% when women represent at least 30% of the workforce and board, suggesting better oversight. Governance policies around diversity also show correlational evidence that companies who are creating psychologically safe spaces for their diverse talent to thrive see increased revenue from innovative products of up to 34%.