In discussions about Environment, Social, and Governance (ESG), the focus until recently was always on compliance and the EU Corporate Sustainability Reporting Directive (CSRD) with its associated reporting. It was often seen as an administrative burden and a mandatory exercise. Today, however, we increasingly encounter creative minds who view ESG innovatively and use ESG specifically to segment. ESG indeed offers opportunities. Three use cases stand out.
Nowadays, numerous consultants assist companies in their transition to sustainability. If they know how their prospects score on E, S, and G, they can tailor their offerings and communications accordingly. They can also identify areas for improvement. Ideally, they target companies that are financially strong enough to achieve this transition.
Long ago, communication was like shooting with a cannon. Email cost nothing, and everyone could receive the message, whether relevant or not. Then came the GDPR. Mailings were somewhat restricted, forcing marketers to work more thoughtfully. Smart, forward-thinking companies already used various scores to precisely define their target audience, such as:
Credit Limit: Why spend time and energy prospecting companies that are not creditworthy?
Activity indicator: Why spend time and energy prospecting companies that have little to no activity?
Today, these forward-thinking minds also add an ESG indcator to their selection. In terms of efficiency and optimal conversion, it is better to work with a smaller, well-defined target audience than a large one that may not be interested in your message.
Other parties also benefit from targeting sustainable companies. Simply put, if you have an innovative, sustainable solution, you are most likely to succeed with ESG-compliant companies. For instance, those selling charging stations are better off targeting companies that are already advanced in terms of sustainability. In such cases, an ESG indicator is worth its weight in gold.
For many companies, the importance of ESG is only just beginning to dawn. Awareness is growing that we are in the midst of a transition. In the near future, it is best if all companies in your network (the so-called ecosystem) are engaged with ESG. It is therefore wise to consider this element now through an objective indicator. Sustainable companies generally have a longer lifespan: they are, after all, sustainable. It is always beneficial to choose such companies.
As we have always recommended including a credit score when selecting your target audience, today an ESG indicator should also be part of your selection criteria.
The data-driven ESG Indicator objectively and uniformly indicates how ESG-compliant a company is. The score assesses the efforts a company makes in the areas of environment (climate, environment, surroundings), social (social responsibility), and governance (good governance).
What makes it even more interesting and clear is that the overall indicator consists of three sub-indicators. A company can score well on ESG overall with an 8 out of 10, but if it scores poorly on S, it provides an additional layer of insight. You understand that the company in question is doing well overall but still needs to make extra efforts in the area of S(ocial).
Would you like to know more about our ESG Indicator? Fill out the response form immediately. I will be happy to explain how we have approached this.