LettersThe importance of partnering up to improve sustainability efforts

The concept of ESG can be extended to include measuring the relationship companies have with other organisations, including their competitors

While individual corporate efforts are important, those that bring firms together can make global impact and breakthroughs via combined action

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The concept of environmental, social and governance, or ESG, investing can be enhanced by including partnerships that bring firms together for combined efforts. Photo: Shutterstock

Published: 11:30am, 24 Apr 2022

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Today’s brands have come to understand that it is not enough to just make profits, expand their market or establish prestige. There is also a moral imperative to demonstrate that a company cares.

The phrase “Business with Purpose” is emerging as a statement of a company’s commitment to step up and demonstrate concern or interest attached to something that is considered socially important. This might include topics ranging from global warming and forced labour to more community-related issues such as the #MeToo movement, racial injustice and homelessness.

One of the most important ways a brand addresses their acceptance of a business with purpose emphasis is with the environmental, social and governance (ESG) framework. ESG refers to a category that is often referred to as “sustainable investing”.

This is an umbrella term for investments that seek positive returns and long-term impact on society, environment and the performance of the business. Most ESG efforts focus on the investment sector to demonstrate that a brand is moving towards sustainability and to reflect its desire to make the world a better place.

A few days ago, I was preparing for a panel discussion related to ESG and emerging trends. As part of a pre-session meeting, the facilitator asked me an amazing question: “If you were to add another letter to ESG, what would it be?” Without hesitation, I said “P”. When he asked why this letter, I responded, “P represents partnership.”