The little things count: small ways to add ESG value

Did your recent trip to the office fridge just release enough hydrofluorocarbons to kill a penguin? That ?? penguin?

Don't worry, we're not shaming you - it’s a scene from a popular US TV show, in an episode where the giant corporation works to publicize their commitment to saving the environment…but their mascot ends up taking the message a little too personally (did you guess the show? Let us know in the comments! You’ll also find a hint at the end of the article...).

Even if no penguins are directly impacted, the importance for companies to be environmentally aware is just as critical today as it was when it first became a trending topic (if not more so). And “going green” has become about much more than replacing overhead lighting and adding a recycling program in the office.

Companies are embracing a set of standards that sets out broader values while incorporating the environmental aspect: Environmental, Social, Governance (ESG) has already become more than the most recent trending acronym.

As we’ve pointed out in previous editions of E-Signed, Sealed, Delivered, customers are much more likely to prefer a brand that places these values at the center of their approach to operations, with a Deloitte study finding that 92% of gen Z consumers would switch brands in preference of one that supports ESG issues.

Higher ESG ratings are also shown to be more appealing to stakeholders and investors (especially in some parts of the world: in Europe, for example, where 50% of assets include ‘sustainable investment’ criteria - a finding by Simply Sustainable). 

And while these kinds of company environmental initiatives are often believed to be implemented with an expected negative impact on profit, recent studies have found this to be the opposite, with a 2019 McKinsey report finding significant correlation between how efficiently a company uses resources and their financial performance. In a good way.

With that in mind, in the same TV show, when the mascot shares his catch phrase: “Saving the Earth while maintaining profitability!” the reality is that that is…the reality. So in this edition of our newsletter, we look at some of the small ways businesses can increase their ESG value.

Through reducing document transport

The covid-19 pandemic forced most companies to take things digital. It drastically changed how they interacted with customers, but also how they managed internal processes such as employee onboarding and documentation that required external signing or documentation sharing.

However, it wasn’t long before a few good digital solutions were introduced that were designed to specifically help companies manage secure form creation, document handling, and verified electronic signing.

A perhaps unexpected benefit of switching to online forms and digital document handling and signatures is the reduction of trips and emissions spent in transporting the physical version of those documents.

Previously, couriers were often needed to transport physical versions of documents for adjustments, signing, transported back, copied, the copies shared, etc. In fact, at Taktikal, we’ve been keeping track. 

At the time of writing, the Taktikal solution has saved 403,407 car trips and resulted in a reduction of 948.03 tons of carbon emissions. Those total numbers show just how businesses can easily start saving on transport emissions but also costs.

Through better onboarding

While approaches to creating a more green operating environment are considerably more widespread and arguably easier to implement, how do companies tackle the social aspect of ESG?

There are plenty of critiques of ESG, and one of the central underlying issues revolves around the social aspect:

“...a failure to take adequate account of social license—that is, the perception by stakeholders that a business or industry is acting in a way that is fair, appropriate, and deserving of trust.”

• Does ESG really matter - and why? McKinsey Quarterly 2022

Building trust today amongst both customers and stakeholders is essential not just for reaching ESG goals, but also for continued success in the marketplace. Because business has seen a massive shift towards fully digital experiences, this means a focus on digital trust.

Digital trust can be built and maintained in a number of different ways - from consistent brand experiences across platforms and devices, to secure website access, to friendly and reliable support services.

But often trust is built in one of the first and most crucial interactions for customers, partners, and employees: onboarding. Offering a clear, secure, and efficient onboarding process not only helps to establish a company as reliable, it shows their commitment to clear and efficient processes, which have a clear impact on the social value factor of ESG.

Through digital due diligence

Providing positive interactions with a business is arguably a bit easier if you’re, say, selling cupcakes (although please don’t quote us on this. We understand that as in any industry, people can have very strong feelings and expectations about cupcakes).

However, in industries that are required by law to adhere to certain regulations such as Anti-money Laundering (AML) and Know Your Customer (KYC) measures, providing a smooth, simple experience becomes significantly more difficult.

Meeting compliance requirements not only serves to protect a business from potential risk, it also shows stakeholders that a company is committed to proper conduct and operations. 

Companies that must require due diligence for potential clients and partners can in fact do so in a simpler way by using the right solution to set up digital flows that cover the questions necessary for meeting AML/KYC requirements.

So while there is criticism of ESG frameworks and how valuable they actually are for businesses, there are still small steps that can be taken that can add value to a company’s ESG proposition while also admittedly making small improvements in operations. And keeping penguins alive. “Greenzo OUT”.