🌱 Three ways that ESG creates value, according to McKinsey & Company

Is “doing good” good for business? 🤔

The short answer? Yes.

Your business, just like everything else in this universe, does not exist in a vacuum. It is deeply intertwined with environmental, social, and governance (ESG) concerns.

Therefore, according to McKinsey & Company’s The State of Organizations 2023 Report, a strong ESG proposition can create value.

In this newsletter, we highlight the three key ways it can do so.

1️⃣ Top-line growth
A strong ESG proposition helps companies tap new markets and expand into existing ones. When governing authorities trust your business, they are more likely to award you access, approvals, and licenses that lead to fresh growth opportunities.

📌 Case study: The Long Beach Civic Center Project
The Long Beach Civic Center Project was a recent, massive public–private infrastructure development project in Long Beach, California. The overall economic impact of the project is estimated at over $1.3 billion. The companies selected to be part of this project were screened based on their prior performance in sustainability.

2️⃣ Cost reductions
Executing ESG effectively helps combat rising operating expenses (such as raw material and logistics costs). According to McKinsey & Company, this can positively affect operating profits by as much as 60%.

📌 Case study: FedEx
In 2023, FedEx converted 20% of its entire 35,000-vehicle fleet to electric or hybrid engines and has already reduced fuel consumption by more than 50 million gallons and has saved almost $180 million.

3️⃣ Investment and asset optimization
A strong ESG proposition enhances investment returns by allocating capital to more promising and more sustainable opportunities (for example, renewables, waste reduction, and scrubbers).

📌 Case study: The Tokyo Metropolitan Government
To combat Tokyo’s rising air pollution, the Tokyo Metropolitan Government allocated more than $3 trillion in investment opportunities through 2030 for both local and foreign startups, ranging across industries from air-quality monitoring to indoor air purification and even cement mixing.

In this week’s edition of In the Loop, we highlight companies that are proactively and effectively utilizing their strong ESG strategies to create long-term success.

How are you acting on your ESG strategies?

If you haven’t reviewed your ESG policies and how they can benefit your business, you might want to take a page (or two!) from our featured companies. 😉

Zero waste heroes: How APNA is leading the charge for a sustainable future

🇺🇸 FOWLERVILLE, MI — As the clamor for environmental protection grows louder daily, companies across the world have demonstrated their unwavering commitment to sustainable growth. With its motto “Creating for Tomorrow,” Asahi Kasei Plastics North America (APNA) has overhauled its production process by gradually adapting one eco-friendly initiative at a time.

READ MORE

Standard Chartered Bank Bangladesh CEO: We will be there to help

🇧🇩 DHAKA, BD — Standard Chartered Bank, which claims to be the oldest bank operating in Bangladesh, boasts 119 years of uninterrupted service in the country. Throughout its history, the bank has consistently spearheaded innovation in the region, pioneering numerous firsts that have reshaped the financial landscape of Bangladesh.

READ MORE

Are companies living up to their ESG pledges?

🇺🇸 SAINT PAUL, MN — In the last few years, global conglomerates announced their ESG pledges (environmental, social, governance) as companies around the world strive to become more responsible corporate citizens. But how many of them have fulfilled their promises?

READ MORE

MORE FROM GMI POST
U.S. Mountain States Business Report 2023

📌 The Mountain States comprise a region of breathtaking beauty where the splendor of nature is on full display. The region also serves as a prime destination for U.S.-Japan trade with over 450 Japanese companies currently doing business in the Mountain States.

📰 READ more about the thriving U.S.-Japan connection in the Mountain States in GMI POST’s #USMountainStatesBusinessReport2023 published in The Japan Times.

READ MORE

CONTACT GMI POST
👉🏻 Do you want to get your story in front of 12,000+ private and public sector leaders?  
Send us an email at [email protected] and we’ll help you get your story to the right audience.

👉🏻 Be featured in The Japan Times (JT), Japan’s largest and oldest English-language daily newspaper!
GMI POST is currently creating economic reports and country investment guides for Bangladesh and the Midwest USA to be published in JT. Send us an email to participate.