Forbes: Why Clear ESG Goals Mean Better Returns
Hangar 75 CEO Ian Wilding's recent article ‘Why Clear ESG Goals Mean Better Returns’ was published on Forbes.com.
Summary of Article
In his Forbes article, Ian Wilding, CEO of Hangar 75, discusses the critical importance of integrating Environmental, Social, and Governance (ESG) goals into start-up strategies from inception, emphasizing that this integration is not merely for enhancing corporate image but a crucial driver of innovation, competitiveness, and financial returns.
The Concept of Impact Return on Investment (IROI): Wilding introduces the concept of IROI, which extends beyond traditional financial returns to measure the tangible impacts of business operations on the environment, society, and governance. This approach encourages businesses to think broader and deeper about the consequences of their actions.
Setting Clear, Quantifiable ESG Goals: Wilding stresses the importance of defining specific, measurable, and achievable ESG goals. These goals should be concrete and impactful, such as significantly reducing homelessness or empowering young entrepreneurs. The clarity and tangibility of these goals enable businesses to track and optimize their impact precisely.
Strategic Implementation and Continuous Improvement: To effectively achieve these ESG goals, Wilding advises experimenting with various strategies and being willing to abandon those that do not work while scaling those that do. Continuous learning and optimization are key to amplifying the impact, as even minor improvements can significantly enhance overall effectiveness.
Balancing IROI with Financial Returns: While focusing on ESG impacts, Wilding reminds businesses not to neglect their financial health. Sustainable businesses must balance impact with financial viability, ensuring steady growth and long-term sustainability.
Conclusion: Wilding argues that investing in clear ESG goals isn't just ethical; it's economically sound. Clear ESG initiatives, when properly implemented and measured, not only drive market innovation but also ensure that businesses contribute positively to society and the environment. This holistic approach to business planning and execution ensures that companies can achieve sustainable success while making a meaningful impact.
The full article can be viewed here.
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