Why should ESG be a Part of Your 2024 Strategy?

Posted by The Team at CXtec on Nov 29, 2023 12:55:42 AM

Today, consumers are more conscious than ever! They seek products and services from companies that give importance to ESG...

Today, consumers are more conscious than ever! They seek products and services from companies that give importance to ESG (Environmental, Social, and Governance) practices. This, in turn, is impacting the way businesses plan their strategies.

According to Kroll - “In the United States, the country with the largest number of rated companies, the ESG Leaders earned an average annual return of 20.3%, compared to a 13.9% average annual return earned by laggard companies. Similar to the findings globally, the relative performance of top-rated ESG companies was nearly 50% stronger than their lower-rated counterparts”.

As we approach 2024, here are all the right reasons why ESG should be a part of your 2024 business strategy.

1. The U.S. Securities and Exchange Commission (SEC) Rule

The U.S. SEC proposed a new rule in which the companies have to disclose specific environment-related information. This information should be in their registration statements and periodic reports.

The main idea of this rule is to track & review any climate change risks and information on the company's greenhouse gas emissions. Currently, the implementation of the rule is very challenging as there are many constraints. However, there's an existing sentiment that it'll ultimately be implemented after a few changes.

2. Create a Positive Brand Image

In today’s competitive marketplace, companies that choose to make a difference stand out! Modern consumers want products and solutions that align with their values. They need a commitment to sustainability and social responsibility.

To meet these changing customer expectations, it’s important for companies to align ESG with their business strategy. It will create a positive reputation and develop long-term trust and brand loyalty.

3. Attract Business Investments

Beyond customer demand, even investors are now considering ESG metrics. While making critical investment decisions, they go through the company's environment & social impact. According to a PwC report, “ESG-focused institutional investment seen soaring 84% to US$33.9 trillion in 2026, making up 21.5% of assets under management:” 

Investor expectations aligned with ESG practices are changing how businesses prioritize sustainable strategies.

4. Alignment with Social and Cultural Trends

Customer preferences also largely depend on social & cultural trends. And businesses that align with the movement gain a competitive advantage. Today, there’s a shared awareness & demand among consumers for ethical practices. As a result, companies that fail to adapt may lag behind.

Navigating the Future: Integrating ESG Principles into Operational Blueprint

As ESG principles are becoming a crucial part of businesses, here’s how they can be integrated with daily operations.

Environment: Create an infrastructure that addresses environmental concerns and reduces carbon footprint. One way to do it is by using high-quality refurbished IT hardware or extending the life of the IT gear, which reduces electronic waste and promotes a circular economy. In fact, environmental harm can be caused by improper IT asset disposition practices. So, following secure methods is also crucial to protect sensitive data & reduce the ecological impact.

All these practices not only align with the ESG principles but can also result in huge cost savings for the organization. 

Social: Companies can develop solutions that create a positive impact on society. They can also promote employee well-being, diversity, community engagements and transparent communication. To sum up, align the operational activities with the community needs.

Governance: Follow strong ethical standards across all functions. Also, ensure stringent implementation of corporate governance principles to build trust and authenticity.

How CXtec can help with ESG-centric solutions!

With over 40 years of experience, CXtec can help transform your IT infrastructure, redefine your IT strategy and reduce costs by making sustainable technology accessible across the globe.

CXtec can help you:

  1. Get high-quality refurbished IT hardware from reputed brands backed by lifetime warranty and advance replacement with equal2new®
  2. Extend the lifespan of your near-expiry IT gears with RapidCare®
  3. Dispose of your equipment with secure IT Asset Disposition

Connect with our experts to learn more!