Investors are a key part of doing business, providing the funding necessary for different ventures and impacting their communities. However, when it comes to evaluating potential prospects, a set of criteria known as Environmental Social and Governance (ESG) is beginning to play a major role. It encourages companies to consider their processes and enact changes, such as hiring solar services for renewable energy. Here’s a closer look to help you understand how ESG relates to your business and its potential investors.
What is ESG?
This factor measures how a business affects the environment. It focuses on issues that relate to world preservation, such as climate change, carbon emissions, and water pollution. Companies are required to uphold regulations and limit the amount of waste that they release. Integrating solar services like commercial energy storage can help keep your business sustainable.
The second component of ESG considers a brand’s relationship with people such as customers and employees. For example, top-notch data security is an essential part of customer success. Otherwise, it would put personal information at risk. Take steps to diversify the workforce and better the community as a whole, demonstrating a sense of value that might carry over to other interactions.
The third and final part of ESG is about the logistics of running a business. This includes fine-tuning the hiring process, ensuring that a set program is in place that’s both efficient and informative. It also relates to compensation for partners and defines the makeup of the board of directors.
How Does This Impact Your Business?
Taking steps to improve operations and customer relations can boost a company’s chances for success. As you incorporate ESG strategies into your business, you can attract environmentally-conscious consumers. For instance, 76% of millennials are concerned about climate change and prefer brands that align with their values. This can help to stabilize the stock prices and encourage investors to take part in the venture. Their support should provide the resources companies need to continue moving forward and enact the necessary improvements.
For help installing solar services for your business to appeal to potential investors, contact Holu Hou Energy in Honolulu, HI. These solar contractors are committed to upholding industry regulations and doing their part to create a better, safer world. They assist businesses of all sizes to provide reliable renewable energy systems for their clients. Call (808) 371-7514 to schedule a consultation.