There is a big idea behind the abbreviation ESG: The “E” stands for Environmental and includes, for example, the efficient use of energy and raw materials. The “S” stands for Social and refers to social issues such as health, safety and diversity of workers. The third letter “G” stands for Governance, i.e. aspects of corporate governance such as business ethics, shareholder rights and executive compensation plans.
In general, ESG criteria refer to the environmental, social, and corporate governance factors that should be taken into account when investing in a company. ESG investment is essential for the good of business and the planet.
Fortunately, individuals can use their positions in business organizations to help develop more sustainable practices. Here are five reasons why business leaders should invest and engage as ESG to ensure their businesses continue to grow:
ESG is good for the planet
To control the problems and find solutions for a better future, it is not only governments that are called upon to act. Businesses must also become pioneers. Rather than waiting for policies to be implemented, businesses can work with governments and agencies to help shape and influence the systemic changes needed for everyone to benefit.
ESG helps companies manage risk
Hardly any management floor in the world can avoid the ESG issue today. As the cost of doing nothing increases every day, so does the need to plan and establish an ESG strategy in most organizations. Companies today are evaluating both the cost of ESG investment and the cost of not investing in their investment decisions.
ESG is good for business
Smart ESG investments pay off because you can see that your management is in a healthy position and is able to plan for the long term and not just act in the short term. Such an astute management approach attracts investors’ attention to your company, improving your company’s profitability. Which in turn can be used profitably in the end.
The next generations will definitely rely on ESG
ESG is extremely important for future generations, as a company’s ESG standards and sustainability performance strongly influence how and where younger people invest. When making investment decisions, they are naturally oriented towards and guided by sustainable companies.
ESG standards are approaching
Companies engage in ESG investment because they believe that the long-term benefits to people and ecosystems around the world are worth the effort and will be rewarded with sustainable growth and profitability.
Of course, profits remain the priority. But fair, socially responsible, and environmentally friendly business practices are also demanded by employees, business partners, and, increasingly, investors. Companies that are already participating in this future-oriented change have the best long-term prospects.
At VYNMSA we are working to create an ESG strategy that is as environmentally friendly as possible, while also seeking to have the best working conditions, equity and diversity, values, good relations, and productivity to impact the community and social environment of our employees, partners, and collaborators.
VYNMSA is one of the leading industrial real estate developers in Mexico. In addition, we are able to develop your Build To Suit or custom projects. We actively work with industrial real estate brokers as business partners, we have around 20 buildings of inventory ready for immediate occupancy, which adds up to around 2 million square feet of built space in the northeast and Bajio region of Mexico.
Contact us and find out why VYNMSA is your best industrial real estate business partner in Mexico.