Why ESG Isn’t Just a Buzzword
ESG stands for Environmental, Social, and Governance. It’s about how a company treats the planet, people, and its own operations. But here’s the truth: most companies either overpromise, or don’t know where to start.
It’s not about being “green” for PR. ESG can be smart business—if it’s built into the core strategy.
A report from McKinsey showed that strong ESG performance lowers risk and improves long-term value. Another study from PwC said 79% of investors believe ESG factors are important when making investment decisions.
So why are so many companies still unsure how to use ESG the right way?
Because they treat it like a marketing layer. Not a system.
Let’s fix that.
The ESG Problem Most People Ignore
Too often, companies treat ESG as an afterthought. They write a report once a year. They donate to a cause. Maybe plant some trees. Then they check a box.
That doesn’t work.
Real ESG strategy starts at the beginning. In how you source materials. In how you treat your team. In how you decide where to build or invest.
The real issue? Most companies think ESG will cost them money. But that’s wrong. Bad ESG decisions cost more in the long run—through fines, lawsuits, customer loss, and wasted resources.
Viable ESG means designing systems that are responsible, measurable, and profitable. Not because it looks good, but because it works.
A Real-World Approach
David Rocker has seen the difference firsthand. He helped guide a real estate project that aimed to balance profits with long-term environmental impact.
“We didn’t start with buzzwords,” Rocker said. “We started with the question: How do we build something that lasts—and still makes money?”
They used local materials. Improved energy systems. Set aside space for affordable housing. It didn’t cost more. It just took smarter planning.
The project filled up faster than others nearby. Maintenance costs were lower. Tenants stayed longer. Investors saw strong returns.
That’s viable ESG in action.
ESG Done Right: Key Areas That Matter
1. Energy and Efficiency
You don’t need to rebuild from scratch. Start by cutting waste.
Switch to LED lighting. Add smart thermostats. Update insulation. Use efficient plumbing.
The U.S. Department of Energy says energy-efficient buildings can cut energy use by up to 50%. That’s not small. That’s profit.
2. Supply Chain Transparency
Where are your materials coming from? Are your suppliers following labor laws? Are you buying from sources that destroy forests or exploit workers?
Trace your suppliers. Hold them accountable. If you wouldn’t want their practices printed on your website, change vendors.
A strong supply chain is an ESG win and a risk reducer.
3. Workforce Practices
Pay fair wages. Offer safety training. Give employees a path to grow.
Companies that treat workers well have lower turnover. Higher productivity. Fewer accidents.
Happy people build better businesses. It’s not theory—it’s data.
4. Local Community Investment
Don’t build a business that harms the town it’s in. Hire local. Train local. Partner with schools or nonprofits nearby.
It pays off. You earn trust, loyalty, and long-term stability.
One company added a daycare center near a factory. Productivity rose. Turnover fell. That’s not charity. That’s smart ESG.
5. Governance That Actually Works
ESG starts at the top. Build a board that holds the company accountable. Create real policies for ethics, diversity, and oversight.
Don’t just write them. Use them.
If leadership doesn’t care, nothing else matters.
Action Steps to Make ESG Work for You
Audit Everything
Start with what you have. Where is your energy going? Who are your suppliers? What are your HR policies? How do you make decisions?
You can’t fix what you can’t see.
Set Goals That Make Sense
Don’t try to change everything at once. Set one goal per quarter.
Examples:
- Cut water use by 10%
- Move 25% of sourcing to verified ethical suppliers
- Start a new employee training program
- Add one community partnership
Make it measurable. Make it public.
Assign a Real Owner
Someone inside your company must own ESG—not just talk about it. Give them budget. Give them a team. Tie their results to performance reviews.
This should be a key leadership role. Not a side project.
Track and Share Progress
Use reports, dashboards, and internal updates. Show progress—good and bad.
Being transparent builds trust. Trying and failing is better than hiding and pretending.
Keep It Simple
Skip the fluff. ESG doesn’t need jargon. Use clear goals. Clean data. Real impact.
If your ESG plan needs a lawyer to explain it, it’s not working.
Why Investors Now Expect ESG
ESG is now a key filter for money.
BlackRock, one of the largest asset managers, said it will require ESG transparency from all companies it invests in.
Over 90% of S&P 500 companies now publish ESG reports. If you’re not measuring and sharing this data, you’re already behind.
But don’t do it just because others are. Do it because it works.
Watch Out for Greenwashing
Greenwashing is when companies talk about ESG without doing anything.
It’s all show, no systems.
Avoid it by:
- Only sharing what you’ve done
- Backing every claim with data
- Admitting when goals fall short
Trust matters more than hype.
Final Thought
Viable ESG isn’t a trend. It’s a tool. When built into your business from the start, it saves money, builds loyalty, reduces risk, and opens new markets.
More importantly, it creates businesses that matter.
As David Rocker said, “We treat ESG like plumbing—not decor. You won’t always see it, but everything runs better because of it.”
That’s the mindset more companies need now. No fluff. Just function. Let ESG do what it’s meant to do—solve problems and make things work better. For your business. For the world.
