The Impact of ESG Strategies in Marketing

A lot has been made of ESG-initiatives over the last year; and for good reason. If you are unfamiliar with ESG and it’s role in business strategy going forward, We Are Rival just had a great write up of what this means and why it is important for businesses.

But it is not a buzz word and it is not something you should think about.

No. You have to think about it. And you have to act on it. These initiatives will only become more and more important in brand building and drivers of loyalty. Take a look at how ESG strategies are impacting investing:

• 78% of 18–34-year-olds said that ESG considerations affect their investment choices compared to 67% among the 35-54 age group and less than a third, 32%, of the 55+ demographic.

• Nearly two-thirds (63%) of 18-34-year-old said they would choose a new fund manager based on their approach to ESG compared to just 17% of the 55+ age group. 

But it is not just investors who have begun to change strategies. Consumers have too. According to a study from Deloitte, consumers have also taken notice and are showing what is important with their wallets.

42% of consumers have changed consumption habits themselves because of their stance on the environment, and 21% have encouraged others to switch to a company whose values align with their opinion on an issue.

These strategies are not to be taken lightly and should only be pursued if you truly believe in them. But take note, these will not decrease in importance.