Have you thought of partnering with another firm on ESG?

Partnering with another firm on ESG: a guide.

Environmental, social and governance (ESG) is a triangle comprising three value-driven factors that can measure a company’s commitment to the environment, wider society, and its employees.

Karl Hodson of UK Business Finance explains why ESG at the heart of a professional partnership can strengthen the bond between parties, including their commercial position and joint ESG commitments.

ESG standards must be meticulously considered when exploring potential corporate partnerships, as this reflects on the ethical values and corporate policies championed by a business. 

ESG focuses on the commitments made by a business to truly change how it operates for the benefit of the environment and the people that work inside and outside its professional confines. 

It shows what practical steps the business wishes to take to increase operational sustainability, combat climate-related risks, give back to society and ensure transparency and accountability. 

ESG policies closely guide business leaders at the forefront of decisions as it’s the compass that key decision-makers must follow to help maintain ambitious ESG standards and achieve sustainability targets.

This is where corporate partnerships are integral to the ESG position of a business, as through professional associations, the ESG efforts of a company can flourish.

To successfully execute your sustainability plans, you may require a helping hand from a corporate partner with the funds, people power and authority to demand change. 

This is where tactical partnerships can bolster the potential of your business and unlock opportunities in the form of connections and access to funding and resources. 

In addition to partnering with other entities to further your ESG efforts, it is crucial to check that you’re operating responsibly and engaging with other businesses that also uphold high sustainability standards. In reality, what does this form of due diligence look like?

–      ESG policy – What is their action plan for environmental sustainability, social responsibility, and corporate governance? ESG policies detail the steps that a business intends to take to achieve its sustainability vision. While ESG may be a focal point for most companies, each business will be committed to the cause at a different level. 

–      ESG reporting – ESG strategies and ESG marketing collateral are often overwhelmed with green claims and ambitious targets; what proportion of these claims are achieved? Are there reporting standards that guarantee transparency and hold the business accountable if they fail to meet benchmarks?

–      Public reputation – Public perception provides a window into how consumers and stakeholders recognise the business outside the corporate sphere. A business’s corporate social responsibility efforts often play into this, including their contributions to the environment, which may have been publicly reported upon. 

The bottom line is to build relationships motivated by partnering with another firm on ESG, businesses can disseminate their message to a broader audience and strive to be more ambitious in their approach.

Contributing to a professional network united by a shared passion for sustainability can inspire you to improve your track record and increase your investments in sustainable operations.

This also adds additional purpose and value to your partnerships as you can work hand in hand to achieve a shared goal.

*To learn more about ESG and the benefits it will bring to your business, download the course brochure below.