In today’s business landscape, getting contracts isn’t just about offering a great product or service anymore. Corporations are looking beyond the bottom line, seeking partners who align with their values and commitment to a sustainability. This is where ESG comes in.

ESG stands for Environmental, Social, and Governance. It’s a framework that measures a company’s impact in these three key areas:

• Environmental: How your business impacts the planet. Think carbon footprint, waste reduction, energy efficiency, and sustainable sourcing.

• Social: How your business impacts people – your employees, customers, suppliers, and the broader community. This includes fair labor practices, diversity, equity, inclusion, and community engagement.

• Governance: How your business is led and managed. This involves ethical leadership, transparency, accountability, and strong internal controls.

So, why are big corporations focused on ESG?

ESG can be a smart way to reduce risk. Companies who are on top of their ESG game are less likely to get hit with fines, suffer supply chain glitches, or end up with a bad reputation. Plus, when a company shows it cares about sustainability, it builds trust with investors, customers and its employees. Speaking of investors, people look at ESG factors when they decide where to invest in the market. Finally, regulatory agencies require some organizations to report on their ESG efforts. So, for corporations, it’s about being responsible and staying ahead of the curve.

For growing businesses (especially those who want to partner with corporations), ESG compliance can be a competitive advantage. By embracing ESG, you can differentiate yourself and stand out in a crowded market, helping you win those lucrative contracts. If you were on the fence, now is the time to make ESG a core part of your business strategy.

Here are a few practical ways you can incorporate ESG into your business operations:

(E)nvironmental: Smart Resource Use – Think about your energy, waste, and resources. Even small changes add up to a big impact. If you’re a marketing agency, track your office’s electricity use. Are you using energy-efficient lights? Can you go mostly paperless? For a small manufacturing business, look at your waste. Can you recycle more, or even find ways to reuse scraps?

• How to demonstrate it: Mention your energy-saving efforts in your proposals. Show off your recycling program or talk about sourcing materials responsibly on your “About Us” page.

(E)nvironmental: Smart Sourcing – When you buy supplies or materials, choose options that are better for the environment. If you’re a boutique clothing brand, look for fabrics made from recycled materials or from suppliers with environmentally sound practices. For a cleaning service, opt for eco-friendly cleaning products.

• How to demonstrate it: Feature your sustainable sourcing choices on your website or in your marketing materials. Certifications or “eco-friendly” badges can be powerful.

(S)ocial: Treat Your People Right – Focus on fair pay, a safe workplace, and making sure your team feels valued and included. For a catering company, this means paying fair wages, ensuring kitchen safety, and maybe offering flexible hours. A tech startup can prioritize diverse hiring and create a welcoming environment where everyone’s voice is heard.

• How to demonstrate it: Talk about your commitment to fair labor practices. Highlight how you support your employees’ well-being and growth.

(S)ocial: Be a Good Neighbor – Think about your positive impact on your local community and beyond. For instance, a design studio could offer pro-bono work for a local non-profit. Or your food service business might donate leftover food or source from local farms.

• How to demonstrate it: Share any community involvement or charitable giving on your website. Highlight how you support local suppliers or initiatives.

(G)overnance: Run a Tight Ship – Be clear, honest, and operate with integrity in all your business dealings. For example, a consulting firm might have clear contracts and privacy policies. Or if you own aa retail business, be transparent about your product sourcing and return policies.

• How to demonstrate it: Have a simple “Our Values” statement on your website that covers ethics and data privacy. Show that you have clear processes for how you do business.

(G)overnance: Build a Strong Foundation – Have good internal systems, clear leadership, and accountability for how decisions are made and executed. This could mean having clear financial records, a process for client feedback, and a way to address any internal issues fairly.

• How to demonstrate it: While you might not share internal documents, you can convey your commitment to robust internal controls and ethical leadership in conversations with potential clients.

Embracing ESG doesn’t have to be daunting. And, you don’t have to be perfect from day one. Just share your commitment and show your progress along the way. Apply some of these small actions to make a difference when preparing proposal responses or negotiating corporate contracts.

If you are ready to integrate ESG into your business, a coach can help. From crafting your initial strategy, to supporting deployment, and preparing compelling proposal responses, I’m here help you navigate the complexities of ESG.

Visit www.growmetix.com/discovery-call to book your FREE Discovery Call today.