ESG – what is it? Sustainability factors in retail and technology companies

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ESG – what is it? Sustainability factors in retail and technology companies

Communication, which is related to business responsibility and sustainability, is becoming an increasingly important issue in enterprises. This is expected primarily by consumers and investors, employees, and regulators. Hence, the ESG standards will soon apply to most companies operating in the EU.

What is ESG?

    ESG (Environmental, Social, and Corporate Governance). Modern companies should pay attention to these issues so that they do not only strive for profits but also act in the long term, considering the factors that concern each of us. ESG is, therefore, a natural development of CSR activities, i.e., Corporate Social Responsibility.

    However, it is worth breaking down the individual elements into prime factors:

    • Environment – here, it is worth answering the question of how the company’s activities affect the natural environment and what the company does to reduce the negative impact,
    • Social – enterprises are people, both employees, stakeholders and customers. In this context, ESG indicates how communication is carried out, how the company approaches the working conditions of employees, and how it cares for employees mentally and physically,
    • Corporate governance is where the management’s competencies, the organisation’s structure and how the management fulfils its obligations to shareholders are checked.

    ESG in the technology industry

      Some companies see ESG as an additional burden related to developing strategies and creating documentation. However, it is worth considering this approach as an opportunity. In the technology industry, where it is so important to retain the best employees, ESG can be a way to convince such people.

      It is also an opportunity to increase trust in the business environment, including, for example, in attracting investors. An important issue is, of course, the reception by potential customers. There is no doubt that a well-planned and presented ESG strategy (and, of course, actually implemented) is a great way to positively influence your image and gain an advantage over market competitors right now.

      But how do you do it? It is worth using proven and already designed solutions. An example is our project, “Go Green Retail,” which, contrary to appearances, does not only apply to retail sales.

      This initiative has two assumptions. First, it aims to ensure company savings through better equipment management. Second, if implemented and properly presented in ESG activities, it can show how the company supports environmental care.

      Examples of implementations resulting from the “Go Green Retail” program are, m.in:

      • giving equipment a second life,
      • replacement of HDDs with SSDs, which is associated with m.in lower power consumption,
      • configuration of offices in terms of energy saving,
      • implementation of intelligent heating, which also allows for lower energy consumption.

      ESG in the technology industry also includes cooperation with Exorigo-Upos in other projects. To find out more, please contact us directly.

      ESG in retail

        This strategy can also be implemented in retail. In recent years, the growth in e-commerce has not forgotten this traditional channel. However, it must constantly develop to attract customers who want direct contact with the brand and its products. Hence, the growing role of ESG in retail, which can be based on many different activities, such as:

        • better control over the supply chain and making it sustainable;
        • using ecological raw materials for the production of materials,
        • actions to transfer used products to be processed and reused.

        There are many optimisation possibilities; they do not have to be the domain of only the largest companies. ESG requires creativity with a smaller budget, but when properly carried out, it is also well-perceived by customers and stakeholders.

        Read our text entitled “Brick-and-mortar stores are still a vital sales channel“.

        ESG is an activity that cannot be ignored. However, it is worth considering it not only in the context of benefits for your business but also for the environment, people, and stakeholders.

        Do you need a reliable IT services provider?

        Then, you are in the right place. We would be happy to talk to you about your next project.