ESG – business with care for the natural and social environment.
Why is it so important for companies to care for the environment and what impact does it have on business turnovers? Which consumers are increasingly paying attention to where they buy products from and how manages the company? Finally how does Hadart implement ESG postulates?
Every year, companies and their management boards pay more and more attention to sustainable development. What constantly counts for the customer is the quality of the product or service, building relationships by the company with the customers, but also, and perhaps above all, whether the company with which it cooperates acts in a responsible manner, i.e. respecting the environment and society.
What does environmental and social management mean?
Environmental, Social and Corporate Governance, or ESG, is a way of conducting activities by entrepreneurs that, by minimizing the negative impact on the environment, fair treatment of their employees, customers and the local community, e.g. neighboring the company, increase business credibility.
Can ESG attract customers?
More and more customers pay attention to ESG and the level of sustainability of the activities of enterprises with whom they cooperate or from whom they buy products and services. Awareness of issues related to environmental protection, social responsibility and good governance is growing, and customers are more likely to choose companies that have a positive impact in these areas. Research shows that more and more consumers, before purchasing, analyze what values a given business represents, what approach it has to environmental protection and what ethical principles it applies. An entity that shows strong ESG values can gain customer loyalty and stand out on the marketI. Research conducted by Moore Global additionally shows that among companies that have implemented ESG standards, their sales results increased by 9.1%, while revenues increased by 9.7%, respectivelyII.
From Gen Z to the silver tsunami
If the recipients of services or products are millennials, i.e. people born in the 80s and 90s of the last century, and people who do not remember the world before the Internet, i.e. the “zet” (Gen Z) generation, it is worth remembering that they pay special attention to fair treatment of society and ethics of production and services. This is indicated by the Edelman Trust Barometer survey, where between 70-90% of people up to 43 years of age want declarations by executive directors of companies in the field of climate change, discrimination or the wealth gapiii. The company’s declared and implemented policy can increase the potential of business partnerships, whether in investments, production or services.
Not only millennials but Gen Z as well are discerning and conscious consumers. Increasingly, the silver tsunami generation (also known as silvers), i.e. people aged over 64, are aware customers who are able to quickly check opinions on the company and evaluate its activities online. With the development of the so-called Internet of Things, where household appliances are connected to our smartphones via wi-fi, our access to information increases exponentially every year, and the phenomenon of digital exclusion is usually related to the location, not the age of the user.
Does Hadart care about the environment and society?
Projects in the field of green and blue infrastructure implemented by Hadart for decades have contributed significantly to improving the quality of the environment in their surroundings. Green roofs, green walls, large trees planted on ceilings, in urban pocket gardens and along the streets not only lower the temperature of the air around these investments, increase its humidity and clean it, but also increase biodiversity. We plant trees and shrubs provided by proven and specialized tree nurserymen who care for the environment in a similar way.
At Hadart, we care for the safety of our team and good cooperation with subcontractors and suppliers. We also take care of our office and its surroundings: the company’s green plot with gardens, green walls, and a retention pond pleases the eyes of all employees, visitors and neighbors.
The need for change
Since 2019, the number of searches for ESG terms on the Internet has increased fivefold, and has doubled in the last 18 monthsIV. This shows that management open to people and the environment is not a temporary trend, but a need of a changing world. Successive business associations require their members to report on ethical business management, and almost every industry today emphasizes not only operating in an environmentally friendly manner, but also fair in terms of human resource management and building relationships with the social environment.
IRamus, T., Montiel, I. (2021), Can corporate sustainability be measured?, „Ecological Economics” 180 as well as Kacperczyk, A., Hong, H. (2018), The price of sin: The effects of social norms on markets, „Journal of Financial Economics”, 129(1).
II Bełdowicz, A. (2023), Działania ESG rynkowym wymogiem, „Rzeczpospolita”, 21 kwietnia, A16.
IV Lellis Ch. (2022), Google Search Trends Show How ESG Is Evolving,
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