Following my previous article on the importance of Environmental, Social, and Governance (ESG) considerations for startups, I received numerous inquiries on how ESG can help reduce costs in business. In response, this article will delve into the environmental aspects of ESG, exploring the risks, opportunities, and impacts on both the environment and organizations.

ESG implementation is a continuous improvement process that mitigates risks, fosters review and improvement, and drives long-term value for businesses. This article will focus on the environmental considerations of ESG, specifically the “Inside-out” and “Outside-In” approaches, which examine the impacts of environmental factors on organizations and the environment.

We will also discuss actionable strategies that organizations can adopt to improve their environmental footprint, reduce costs, and build sustainable businesses. These strategies include:

1. Energy Management, Substitution, and Reduction: Implementing plans to reduce energy consumption, such as installing automated switches, using sensor switches, and transitioning to renewable energy sources like solar power. Too many cases of ‘energy abuse’ for instance where Air-condition and other appliances are running in empty offices. Switching to energy saving bulbs and devices can help in managing and reducing energy usage.
2. Nature, Biodiversity, and Ecosystem: Encouraging sustainable practices like tree planting, using natural indoor plants for air purification, and reducing paper usage through digital solutions. In some organization today, they prefer spending more to buy artificial trees than planting trees, and also high cost of papers and printing can be drastically reduced by using digital solutions that best fit your organization thereby reducing resources usage and improving our environment
3. Water Management: Implementing water reduction strategies, such as encouraging recyclable water usage, installing water-efficient devices, and promoting rainwater harvesting. Also providing signage at water use areas has proven to call people attention on water management.
4. Waste Management: Implementing plans to reducing waste generation through sustainable procurement, recycling, and encouraging circularity in production and products. When an organization is able to reduce its waste. The frequency of disposal is reduced thereby saving cost.

In conclusion, adopting environmentally conscious practices, such as improving efficiency, reducing consumption and waste, and embracing circularity, can significantly reduce costs for businesses. By integrating these environmental considerations into their operations, organizations can enhance their value, reduce costs, and promote sustainability.

Systematic planning, review, and continuous improvement are essential for effective ESG implementation. By embracing these environmental considerations, businesses can unlock long-term value, reduce costs, and contribute to a more sustainable future.

Paul Nwachukwu is a Business and Sustainability Professional dedicated to helping startups align their solutions with sustainable impacts and drive positive change.