ESG, or Environmental, Social and Corporate Governance, is a collective term used to define the overall ethical impact of an organisation. As the name suggests, it focuses on how a business impacts the environment and wider society, while ensuring it is governed appropriately.
And it’s becoming increasingly important. A PwC survey into ESG within businesses found that a huge 76% of people would discontinue relations with companies that treat their employees, local communities or the environment poorly.
Combine the rise in these views with ever-mounting environmental pressures and more social movements gaining traction around the world, it’s never been more important for businesses to take ESG seriously.
But why should you actually care about ESG? And how can cloud solutions help?
Let’s dive in.
What are the benefits of ESG initiatives for businesses?
Businesses have a huge part to play in reducing environmental impact, with just 100 companies responsible for 71% of global greenhouse gas emissions. It’s also best practice to care about communities, especially those that are underrepresented.
But why should you care really? How good can ESG actually be for business? Here’s our top three benefits.
- Attract and retain the best talent
More and more, people are wanting to work for companies that do good. They want to be proud of the organisations they work for. Studies show that organisations who embrace ESG have both higher employee satisfaction and attractiveness. We know that when people are happy at work, they’re more productive. And, they stick around much longer too.
- Build customer loyalty
Consumers are becoming more socially conscious. Accelerated by the pandemic, there has been a huge shift in the relationship people have with brands and organisations. They want to do business with people who do good. Demonstrating shared values (either for the environment or another cause) builds that loyalty. And in turn, makes your customers more likely to tell others about their positive experience with you.
- Increase your profitability
Ultimately, ESG is good for profit. Thanks to the reasons mentioned above - businesses who prioritise ESG tend to have greater financial returns. Employees are more likely to stay. People are more likely to do business with you. And they’re more likely to tell their peers about it, too.
How can cloud solutions improve ESG for businesses?
Moving to the cloud has several important benefits for businesses. It’s secure, has fantastic scalability, and can come with some significant cost savings.
But did you know that cloud solutions can also help with your ESG efforts?
It seems certain businesses are starting to realise the environmental benefits. The US Cloud Business Survey conducted by PwC has found that a massive 60% of business leaders are using or plan to use cloud technology as a way of enhancing their ESG.
- The cloud reduces energy consumption
With constant demands on electricity alongside needing powerful cooling systems to ensure hardware doesn’t overheat, on-premise solutions consume far more energy than the cloud. Research by Berkeley Lab, Northwestern University and Google found that cloud computing can cut energy consumption by a staggering 87%. The savings made could power Los Angeles for an entire year.
- Cuts down carbon emissions
The cloud is also significantly better than on-premise when it comes to carbon emissions. The cloud reduces the need for large datacentres, which are typically massive contributors to the world’s carbon emissions. They have to operate 24 hours a day, seven days a week and require huge amounts of energy to do so.
- It’s often powered by green energy
Many of the major cloud data centres are owned by the providers themselves. And are increasingly being powered by renewable energy resources, like solar wind or even geothermal energy.
Microsoft, for example, are on a real mission to ensure they’re creating solely sustainable data centres. We’ve been hugely inspired by their mission to become carbon negative by the end of 2030. They are also on track to be reliant only on renewable energy sources by 2025.
Hable and the environment
Why are we talking about all of this? As a business, we are hugely passionate about looking after the planet.
One of our strategic pillars for the year is to become leaders on climate change. Something we are hoping to achieve by sharing content exactly like this, and through the continuation of our Hable Forest initiative with World Land Trust.
In which, we:
- Plant a tree for every learning day we deliver
- Donate money towards the purchase of threatened land
- Raise vital funds to employ local rangers, who run crucial conservation programmes
That means when you buy from us, you’re doing your bit for the environment too.
How can Hable help?
We help solve the trickiest, most critical problems you face when moving to the cloud. Helping our customers use Microsoft 365 apps and programmes more efficiently. And unlocking new ways of working.
If there is something we can help with, please get in touch