Business

Why ESG Matters For Small Business

Published on
February 9, 2022
ESG doesn't just matter for large corporations. Even small businesses can reap the benefits.

Nathaniel Thoreson

ESG doesn't just matter for large corporations. Even small businesses can reap the benefits.

If you’re a business owner, chances are you’ve heard of ESG. If you haven’t, let me give you a simple refresher. ESG is an acronym that refers to a companies internal and external focus on their environmental impact (E), Social interaction with employees and customers (S), and Governance of how the business is run (G). ESG is a non-financial metric that measures businesses operations and looks at a business relationship with the environment, employees, and the community they operate in. 

The focus on ESG has been thrust into the spotlight in recent years. Nearly every day, a new business makes headlines for investing billions of dollars into their new ESG initiative or breaking an existing commitment. 

Because ESG can encompass a wide range of initiatives, it varies for every business. As a small business owner, you may be wary of adopting an ESG model. After all, you don’t have the same resources as Pepsi or Microsoft.

The good news is that minor changes to your operations can make a big impact on your bottom line.

How ESG can benefit your small business.

Conscious Customers

Consumer preferences are rapidly changing. In warming, more divided, and unequal world, consumers want to know that businesses will use their resources to make the world a better place. The skyrocketing sales of eclectic cars are just one example of how consumers vote with their dollars.

According to a 2018 study, members of Gen Z and Millenials, which have a combined purchasing power of over $165 Billion, are hyper-focused on ESG. 52% of that population report ESG as a driving factor behind their spending habits.

By incorporating an ESG strategy in your business, you can be sure you’ll attract the attention of young and vocal consumers.

Investors

Teenagers and hipsters aren’t the only groups that care’s about your businesses ESG - large investors are becoming just as conscious. As of 2020, 71% of institutional investors say that ESG is “integral to sound investing.”

If you’re a small business looking to expand, chances are you’ll need investment from a venture capital firm. By implementing ESG in your operations, you’ll be setting your business at a distinct advantage for getting investor dollars.

Attracting Talent

“The Great Resignation” caused to COVID-19 has brought many businesses to the brink. When your workers quit, it puts even more pressure on the employees who stuck around, leaving them less productive and more burnt out until your most loyal workers put in their 2-weeks.

One of the major drivers behind the Great Resignation is a shift in employee values. Many quit to either find a career with more meaning or value flexibility; both of which can be solved with ESG programs. 

How to implement ESG

Environment

The E in “ESG” relates to the importance of ensuring your business has a minimal, or positive impact on the surrounding environment. Ideas to get you started: 

  • Donate 1% of profits to environmental programs like NFTrees
  • Set emissions reduction targets
  • Recycle
  • Scale back single-use plastic products
  • Hold your vendors accountable or drop them if they don’t align with your newly found values
Social

Social issues are about how your business handles relationships with employees, partners, investors, customers, and the local community. Ideas to get you started:

  • Equal pay
  • Carry ethically sourced products
  • Volunteering campaigns
  • Customer give-back programs
  • Employee training
Governance

Governance relates to the operations of your business and the mechanisms for oversight. Ideas to get you started:

  • Avoid conflicts of interest
  • Allow your workers to join a union
  • Employ smart and reasonable executive salaries
  • Hold yourself to the same standard as employees


How Webblen Can Help

Webblen is entirely focused on creating positive outcomes at the local level. As a platform, Webblen allows businesses to organize people to solve challenges facing a local community. 

By starting an initiative through Webblen, which is completely free, you can effect positive change in your community and put your brand at its center. 

You shouldn’t look at Webblen as just a marketing tool to earn cheap points toward your ESG score. Look at Webblen as a way to give back to your community by organizing your customers, employees, and partners to take on the challenges facing your local area. 

No initiative you start should be about you or your business. Create value and your customers will notice.


Learn more about how Webblen can help you create value in your community.

About Webblen

Webblen is a decentralized platform that rewards community engagement and positive social behavior to build vibrant, sustainable, and involved local communities. Community members are rewarded with the WBLN token for engaging in local events and media which can be traded for local goods and services or other currencies. Businesses and governments are empowered to directly engage with members of the community and mobilize them to accomplish community objectives. Webblen is on a mission to build involved communities while frictionlessly bringing the power of cryptocurrency and blockchain to the masses. www.webblen.io

#SmallBusiness, #ESG, #Environment, #Investing, #Local
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