How can consumers and investors influence corporate sustainability practices?

2 Investor engagement

Another way that consumers and investors can influence corporate sustainability practices is by engaging with the businesses they invest in or lend to. Investors can do this by screening their portfolios for environmental, social, and governance (ESG) criteria, by voting on shareholder resolutions and proxy statements that address sustainability issues, by engaging in dialogue and advocacy with management and boards, and by divesting from or boycotting businesses that do not meet their sustainability standards. By doing so, investors can influence the financial and reputational risks and opportunities that businesses face, and hold them accountable for their sustainability performance and disclosure.

3 Collective action

A third way that consumers and investors can influence corporate sustainability practices is by joining or supporting collective action initiatives that aim to promote sustainability across industries and sectors. Consumers and investors can do this by participating in campaigns, petitions, boycotts, or lawsuits that target businesses that are harming the environment or society, by joining or donating to organizations, networks, or coalitions that advocate for sustainability policies and regulations, by collaborating with other consumers and investors to share information and best practices, and by raising awareness and educating others about sustainability issues and solutions. By doing so, consumers and investors can leverage their collective voice and power to create systemic change and drive sustainability transformation.

4 Personal lifestyle

A fourth way that consumers and investors can influence corporate sustainability practices is by adopting more sustainable lifestyles and behaviors in their own lives. Consumers and investors can do this by reducing their consumption and waste, by switching to renewable energy sources and efficient appliances, by using public or alternative transportation modes, by investing in green or social projects or funds, by volunteering or donating to sustainability causes, and by learning and applying sustainability principles and skills. By doing so, consumers and investors can reduce their own environmental and social footprints, align their values and actions, and inspire others to follow their example.

5 Education and empowerment

A fifth way that consumers and investors can influence corporate sustainability practices is by educating themselves and empowering others about sustainability issues and opportunities. Consumers and investors can do this by accessing and analyzing credible and relevant information and data on sustainability performance and impacts of businesses, by seeking and providing guidance and advice on sustainability choices and actions, by joining or creating platforms or communities that foster sustainability learning and dialogue, by developing and applying critical thinking and problem-solving skills, and by advocating for sustainability education and literacy in schools and workplaces. By doing so, consumers and investors can increase their knowledge and awareness, enhance their confidence and influence, and foster a culture of sustainability.

6 Innovation and entrepreneurship

A sixth way that consumers and investors can influence corporate sustainability practices is by innovating and creating new products, services, or business models that address sustainability challenges and opportunities. Consumers and investors can do this by identifying and pursuing unmet or emerging sustainability needs and demands, by applying creativity and technology to develop sustainable solutions and innovations, by testing and scaling their ideas and ventures, by seeking or providing funding and support for sustainability entrepreneurs, and by collaborating with other innovators and stakeholders. By doing so, consumers and investors can generate value and impact, challenge the status quo, and shape the future of sustainability.