Teal said that having businesses align their ESG components is becoming more critical – and needs to become core to their business operations. But, he noted that it can also help their short- and long-term bottom lines. So, advisors should raise this topic with small and medium-sized business clients.
“Going a bit deeper than looking at the bottom-lines can often drive innovation. It can result in more sustainable products or services delivered in new ways, an improved market image, or better access to resources through stronger community and government engagement,” he said. “Being a more attractive supplier can also benefit the company, whether that’s government or private.”
Meridian believes that businesses can benefit from lower energy consumption – in their buildings, vehicles, and equipment. They can also redirect the resources that they save from reduced resource consumption and creating more efficient processes when they look at their productivity.
“So, having a conversation with them about how they’re doing ESG is not only a nice thing to do, but the right business thing to do,” said Teal.
Helping clients look at the business through an ESG lens can even help them with one of businesses’ biggest challenges today – attracting and retaining the best employees. The younger generation is more attracted to companies that have a clearer vision and social purpose, so they can feel good about the work they do. But, even the equity and diversity lens helps businesses cast a broader net for new employees, so they can include different groups who want to work with them.
