Your Small Business Needs an ESG Plan

What is an ESG plan?

An ESG plan is an action plan used to achieve its environmental, social, and governance goals and ensure they align with the organization’s vision, values, and overall strategic plan.  The point of the plan is to capture and communicate non-financial risks and opportunities related to day to day operations. 

An example of an ESG plan component

A tangible example of an ESG plan item could be the purchase of refurbished computer hardware in place of new hardware to reduce e-pollution and lower a carbon footprint. It could also be a commitment to reevaluate pay structures to improve gender equity or support Indigenous economic reconciliation by prioritizing Indigenous supply chain partners.   

3 Benefits of an ESG Plan

Attract Quality Staff

Allocating attention and resources towards governance (a ESG pillar) can enrich a work environment by making it more equitable, participatory, and motivating for employees and owners alike. This can improve employee morale and lower turnover, even for entry level positions.

Secure Valuable Supply Chain Contracts

Larger organizations are developing ESG strategies, increasing the demand for supply chain partners whose activities support their ESG goals. In some industries, having an ESG plan will become a basic requirement in the near future. If your organization is ahead of the curve, your ESG plan could be a competitive advantage over larger competitors.   

Build Trust with your Customers and Stakeholders

High value customers and business partners want to know that your activities will be sustainable and have longevity (you can honor a repairs warranty for that bike you sold them, or continue distributing the bikes they sold to you). Partnering for their success, not just your own, will win you loyal customers and long term business relationships.

Start Small, Start Today

ESG plans do not have to be complicated or unaffordable. In fact, looking for simple efficiencies in an organization’s operations is a practical way to start. Don’t forget to let your business partners know that you are enacting your plan. They are not waiting for perfection. They are