Metrics that Matter: Long-term Environmental Sustainability Depends on DEI and ESG

Socially conscious consumers and investors are pressuring companies to be more sustainable, and large investment firms like BlackRock and Vanguard are paying attention. But the interest in corporate responsibility is more than altruism or a passing fad. Environmental sustainability gives companies a competitive advantage and is a powerful strategy for long-term success.

Companies with sustainability strategies become more efficient and innovative as they strive to reach environmental goals. Their brands become stronger as they respond to consumer demands and communicate their progress. One way sustainable organizations measure their achievements is by tracking and reporting environmental, social, and governance (ESG) information.

Companies with high ESG scores are seen as good investments, because they are better able to manage long-term risk. They are also more likely to be diverse, culture-centric organizations, because diversity, equity, and inclusion (DEI) practices strengthen and enhance all three elements of ESG. As competition heats up to attract socially responsible investors, consumers, and employees, these two intertwined strategies will only grow in importance.