Today's most successful companies care about more than just their bottom lines. Sustainability and social responsibility are now top concerns, codified in the form of Environmental Social Governance (ESG) criteria.

Common ESG projects include diversity, equality, and inclusion (DEI) training, carbon-neutral shipping, and a shift toward digital processes to improve operational efficiency. This article looks at how today's businesses are implementing ESG criteria in their company culture.

Why Companies Are Ramping Up ESG Projects

Several factors have accelerated the implementation of ESG criteria, including:

Investor Expectations

Clients and stakeholders are particularly concerned that the companies they invest in demonstrate responsibility to their communities and the planet itself. 

Mauricio Vianna, CEO of MJV Innovation, says that "the main driver for ESG initiatives and investments is fulfilling client requirements and pressure from stakeholders (including beneficiaries and clients) for increased transparency and consistency in ESG fund reporting and data availability."

Corporate Responsibility

Many companies are awakening to the reality that climate change is worse than originally thought. Pursuing zero-emission shipping and production methods is more than "virtue signaling" to their investors - it's a reflection of their desire to care for the world around them.

Performance Benchmarks

Data and analytics have shown a positive relationship between ESG policies and company performance. This relationship has only accelerated the mainstreaming of ESG throughout the business world.

Key Types of ESG Projects that Companies Are Investing in

The business community has embraced ESG criteria in several key ways. Here are some of the biggest ESG projects that companies are making part of their corporate mission:

Net Zero Supply Chain

One of the biggest ESG initiatives has been the pursuit of renewable energy investments and a net zero supply chain. In some cases, logistics technology and artificial intelligence (AI) have improved the efficiency of the supply chain, eliminating waste. 

But many companies are also making use of electric vehicles (EV) to reduce their carbon impact and pursue sustainability.

The Digital Revolution

Vianna points out that "almost all products and services are developing a digital presence and platform for interaction." Virtual reality (VR) and augmented reality (AR) are rapidly becoming the norm for many industries, including healthcare, education, social networking, entertainment, and more. 

This transformation minimizes the excesses of former production environments and ushers in greater efficiency across multiple industries.

Transforming Work Culture

In the wake of the Great Resignation of 2021, many companies are recognizing that workplace culture matters almost as much as salary and benefits - and sometimes more. 

As a result, employers are adapting to the expectations of their workers, offering expanded benefits that improve employee well-being and include diversity, gender equality, and inclusion initiatives to promote empathy in the workplace.

Technology to Drive Product Innovation

New technological advancements have made it easier to implement ESG criteria. This work includes such things as:

• The decarbonization of food systems

• Sustainable packaging and product design

• Smart investment platforms for sustainable investments

Additionally, Vianna notes that technology has increased the need for corporate transparency. "Using social media as a platform for businesses to share and create a presence is increasing," he says. "With rising stakeholder and consumer demands, companies are investing for adequate ESG data analysis and reporting." 

This focus means that companies will continue their efforts to deliver on their promises to behave responsibly toward their workers and the planet itself.

The Future of ESG

What does the future hold for ESG? Vianna believes that the future will demand "empathizing and understanding the needs and challenges and discovering the scope for innovation." 

A systems-thinking approach allows companies "to map all areas and stakeholders impacted through every initiative," giving companies even greater control as they seek to implement these ESG projects and strategies.