Adconia has been conducting surveys of SMEs for several years. This quarter, a trend that has been apparent for years prevailed. In all categories polled, the various levels of corporate executives put the topic of „ESG“ in a top position for the first time. Of course, security of supply and energy costs remain at the top of the list. From a strategic point of view, however, the realization is gaining ground that the topic of ESG will be crucial for corporate success in the future.

Therefore, a few thoughts on the selected top topic „ESG“:

Environmental, Social, and Governance (ESG)

Environmental, social and governance rules are becoming increasingly important in today’s business world. ESG refers to the factors that companies use to measure and report on their sustainability and social impacts. Companies are held accountable for their actions and impacts on the environment, society and governance practices, making the implementation of ESG policies essential.

The importance of implementing ESG strategies

First and foremost, ESG help companies mitigate risks. ESG factors such as climate change, natural resource depletion and social issues can have a significant impact on companies‘ operations and financial performance. By implementing ESG strategies, companies can identify and manage risks, improve their resilience, and ensure that their operations are sustainable in the long term.

Second, ESG can help companies attract and retain investors. Investors are increasingly interested in investing in companies that have a positive impact on the environment and society. ESG metrics provide a transparent and measurable way for companies to report on their sustainability efforts and social impact. By implementing ESG strategies, companies can attract more socially responsible investors and improve their access to capital.

Third, ESG can help companies build a positive reputation and brand. In today’s socially conscious world, consumers are more willing to support companies that are environmentally and socially responsible. Companies that have a good reputation for ESG performance are more likely to attract customers and retain their loyalty. In addition, ESG can help companies differentiate themselves from their competitors, build trust with their stakeholders and increase their brand equity.

Finally, ESG implementation can help companies improve their corporate governance. Good corporate governance is essential for the long-term success of companies. By implementing ESG strategies, companies can ensure that they have strong governance practices that promote transparency, accountability, and ethical behavior. ESG can also help companies improve their management practices, employee engagement and communication with their stakeholders – all of which are critical factors for effective corporate governance.

In summary, ESG is essential for companies to succeed in today’s business environment. By implementing ESG strategies, companies can mitigate risks, attract investors, build a positive reputation, and improve their corporate governance. Companies that priorities ESG issues are better positioned to achieve sustainable growth and create value for all stakeholders.

We are happy to support our clients in strategy development and operational implementation to make ESG a new, economically sustainable success factor for them.

Oberhausen, March 2023