It is no secret that investors have taken the sustainability train, and are now more than ever looking to make more conscious decisions when choosing where to put their money. It is time for companies to do the same.
It is crucial for most organizations to attract investors in order to keep growing and find business success along the way. But, what moves investors today has greatly shifted towards more sustainable ways of understanding the market.
In today’s market reality, Environmental, Social, and Governance factors (ESG) are no longer a nice-to-have, but rather something that is expected from companies.
Taking a more socially and environmentally responsible approach to business and investments is the new normal, and the only way to ensure resilience.
How to attract sustainable investment
Attracting sustainable investment will not only help the company further develop its sustainability strategy and growth, but it can become a testament to their already ongoing ESG initiatives.
According to recent reports, sustainable investments just keep on rising, and ESG factors have become companies’ best friends when looking for financial stability.
Here we have gathered 5 most important steps into attracting ESG or sustainable investment and becoming a more responsible company along the way.
ESG at the core of the business strategy
It might seem a bit obvious to embed ESG into the business strategy in order to attract ESG investment, but it is the number one priority nonetheless. Companies need to develop a compelling ESG narrative into their business plans.
In this same line, such ESG narrative should aim to show future sustainable growth plans, this way, investors can have a clearer understanding of the long term potential value of their investment.
Engage employees in the sustainability strategy
Put an emphasis on environmental practices
Embedding ESG onto the business strategy also means taking action. Addressing environmental challenges is a core factor investors look for in companies, as it is crucial for the future.
This emphasis can go anywhere from reducing carbon emissions, waste management, energy efficiency, circular economy etc. It is also important to be transparent about such practices and targets.
Don't forget about social responsibility
Prioritizing social responsibility and having a positive impact on society is crucial to investors, but so is to the success of the business itself.
It is important to focus on building an inclusive, diverse and safe workplace, and to develop norms and initiatives that ensure fair and ethical labor practices. And while focusing on internal practices is key, investors also look for companies that put an effort into making their communities better through various initiatives.
Prioritize good governance practices
No ESG strategy is complete without laying down the basis for good governance. In fact, investor put great emphasis on good corporate governance strategies.
This includes implementing ethical codes of conduct, committing and following through regulatory compliance and basic business ethics, as well as risk management frameworks. This shows investors the ability of the company to navigate challenges and be resilient.
ESG reporting and transparency
Transparency is key, as there is no other way to inform investors about the practices, initiatives and targets set within the company regarding ESG.
Similarly, ESG reporting can be a great ally, both for transparency and accountability purposes, and to create a culture of continuous improvement that is very much valued by investors looking for long term sustainable value.
Making ESG part of the workplace culture
As investors put more emphasis (and money) onto sustainable companies, businesses should comply with such standards at all levels of the organization, from top managing directors to employees, sustainability should be embedded in workplace culture.
We believe that employees are far from being indifferent from participation in sustainable efforts, and actually look for the opportunity to be actively engaged and find purpose in having a positive impact through their jobs.
That is why through our technology we work to activate and track employees’ impact, creating engagement that translates into improved ESG metrics, reputational value and an overall positive impact for the environment and society.
Because the workplace can in fact become the perfect environment to find that collective eagerness to make a difference, both for the sustainability and purpose of the company and a more sustainable way of being for all.