ESG has become a trend in recent years. Its adoption was greatly accelerated by the global pandemic as the demand for greener and open spaces heightened.
ESG is a standard with three pillars — environmental, social, and governance. These pillars work hand in hand in giving companies better performance and benefits towards the wider market and society.
What makes a good ESG strategy?
An ESG strategy is the organizational approach that alters the company’s environmental, social, and governance practices into more sustainable ones. ESG is oftentimes referred to as sustainable investing. It involves conducting business to provide long term-value without creating any negative effects on the wider environment and society.
How ESG creates more value for your business
There are many ways that ESG can impact and influence your business. According to McKinsey, a company with a strong ESG thrust can help penetrate new markets and further expand its reach. Likewise, a study conducted in the University of Pennsylvania shows that companies with social-engagement activities had an easier time with getting resources and overall financial valuation. The reason behind these is that investors nowadays consider a company’s ESG practices as part of their analysis to find significant risks and growth opportunities.
ESG strategies do not just make the business more attractive to lenders. It also improves the overall performance of the business. The smallest efforts such as going paperless can improve on the bottom line and the eventual Return on Investment of the business. Companies that are compliant with ESG standards typically have less exposure to fines and penalties, improving their performance.
There are also cost benefits to adopting an ESG strategy. Employing ESG strategies can help companies make operations sustainable. It lowers operational costs, which is one of the bigger factors that affect profits.
Lastly, adopting ESG strategies can help build better relationships with customers and employees. In an article, customers are said to willingly spend more on brands that align with their own values and contribute positively to society. On the other hand, ESG is also a good way to attract and retain quality employees, enhancing their motivation through the purpose that the ESG strategy can bring. This positive social impact correlates to greater job satisfaction for employees, which is a good thing, as they are keener to ‘give back’ and be more productive to the company.
Santos Knight Franks’ ESG Commitment
With 40% of emissions arising from built environments, Santos Knight Frank calls back to its firm commitment to ESG in the way the business is operated and how it serves its clients. ESG practices supported by market-leading research and insights is an integral part in all stages of a building lifecycle here in Santos Knight Frank. We also offer ESG Consultancy Services led by award-winning ESG specialists. Our three areas of focus centers around tackling climate change, creating social value, and restoring nature.
Have a reliable ESG Real Estate Partner today! Talk to the experts at Santos Knight Frank to learn how we can support your company’s ESG strategy today and in the future.
Santos Knight Frank is a renowned real estate services agency that has a great track record of serving clients with services such as occupier services & commercial agency, investment & capital markets, residential & sales leasing, property marketing, research & consultancy, valuation & appraisal, project management, asset management, property management, facilities management, technical services & engineering solutions. Visit our website and speak to our real estate practitioners at https://santosknightfrank.com/. To know more about ESG, read Should You Locate Your Office in a Green Building?