Why invest in ESG? 5 Reasons to become a sustainable company

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What you will find

For many organizations sustainability still sounds like a necessary evil, investing in it for purely regulatory reasons, but we are here to convince you otherwise. Here are 5 reasons why you should consider investing in ESG.

For many organizations putting money onto sustainable initiatives still feels like a waste of resources, so why invest in ESG at all? What benefits could it bring? 

And although for some it may seem rather obvious how sustainability is the only way to do business, the sometimes intangible and long term return of investment sustainable causes can have, often act as an obstacle for those just starting out their ESG journey.

So in case there are any doubts left on why should your company aim to become sustainable, here are 5 reasons why you should start investing in ESG today. 

why invest in ESG

Why invest in ESG?

Chances are someone in your company has already asked this question before, why invest in ESG? It is a fair question to ask, as the many environmental, social and governance matters it touches upon can radically alter the way business is done.

And here is precisely where most problems begin to appear; leaders start rethinking how business-as-usual is done only to realize sustainable initiatives and policies completely clash with the latter. 

In other words, business leaders might appear hesitant to invest in ESG as it not only requires major structural changes within the organization, but it can be tricky to understand the ROI such sustainable initiatives have. 

Engage employees in the sustainability strategy
Learn more about how we can help your company achieve ESG goals faster

But investing in a better and stronger environmental, social and governance business performance is much more than just about a tangible return of the investment, it is in fact a highly strategic move in the right direction. 

5 Reasons to become a sustainable company

There are many reasons why companies should aim gain a sustainable reputation directly stemming form their business performance, but to sum it all up, here are 5 reasons why your organization should start investing in ESG today. 

Better products and services

Investing in ESG will not automatically make your company’s products or services better, but it will most certainly improve them over time, together with brand value and a lower customer acquisition cost. 

The relationship between ESG and better products or services becomes clear as companies who showcase sustainable products and/or more progressive ways of doing business, are more likely to preserve their market share and build up a strong sustainable reputation. 

Cost reduction

Even though many business leaders understand sustainability or ESG investments as an added cost to their finances, it can actually help do the opposite. In the beginning stages of sustainability companies can see their cost reduced by making their offices more energy efficient or by switching packaging methods. 

Moving forward, greater environmental and social initiatives taken on by the organization could further improve cost reductions, from driving more efficient production methods to less social backlash and reducing the subsequent risk of reputational costs. 


One very important reason that may go overlooked is how investing in ESG makes a company more resilient and less likely to face certain sustainability related risks. The most prominent ones being regulatory risks. 

Additionally, ESG disclosure can also help ensure the company itself is aware of the sustainability risks it faces throughout its value chain and among different stakeholders, helping assess and prioritize them accordingly. 

Credibility and reputation

In our highly technological world where information travels more rapidly than we are able to process it, reputation and brand credibility are core elements to any and every organization’s strategy.

Investing in ESG can help companies set sustainable goals, and thus, they can also set guidelines for the initiatives, policies and actions needed to get there. The results and performance of such goals is what eventually helps businesses build their credibility and sustainable reputation. 

A deep dive into the ROI of sustainability
Read our guide to learn about the many tangible and intangible ways in which the ROI of sustainability may manifest itself.


There is a tendency to separate ESG investments from the overall company strategy, and although for some purposes this division makes sense, sustainability is part of what makes a business strategy stronger and more resilient.

The holistic nature of ESG alone is a great example of how a company’s strategy can be positively affected by investing in such crucial factors, as it can align company goals towards Sustainable Development Goals, for example, or other major global sustainable standards, further strengthening reputation, resilience and the business overall. 

Engage your employees in the ESG strategy

Regulations is already leading companies towards setting more ambitious sustainable goals, but so are people, including employees and potential candidates. ESG has undoubtedly become a must for most workers today. 

In DoGood, we aim to simplify the complex web of sustainability objectives for companies by offering a platform that translates the high-level ESG (Environmental, Social, Governance) objectives into actionable tasks for every single employee. 

Then, each employee not only knows how to make an impact but also feels empowered to contribute meaningfully to the greater sustainable strategy. 

No more vague directives. No confusion. DoGood automates the process, making it seamless for the workforce to know precisely what steps to take.