Environmental, Social and Governance (ESG) frameworks have evolved in recent times from starting out as somewhat niche investment criteria to becoming mainstream business practice. They provide structured approaches for organisations to both measure and communicate their environmental and social impact, and what began as a tool for investors to assess long-term risk and value creation has expanded into a comprehensive framework that can encompass everything from carbon footprint reduction and supply chain ethics to board diversity and stakeholder engagement.
For many businesses, ESG statements have become both a strategic guide and a public commitment, setting out how they intend to balance profit with purpose in an increasingly conscious marketplace.
For agencies, the question of ESG can present some particularly interesting dynamics. As businesses that might, for example, create campaigns, shape brand narratives and influence consumer behaviour, agencies occupy a unique position in the ESG landscape. They are simultaneously individual businesses that are implementing their own ESG commitments and enablers that are helping clients communicate theirs. Like all businesses, the growing demand for sustainability and social responsibility in the provision of services, as well as intensifying competition for talent seeking purpose-driven employers, means that ESG statements are shifting from something that is nice-to-have, to being critical components of any business strategy.
But what do agencies who have ESG statements look like compared to the sector as a whole, what does it tell us about our sector, and what can we learn from those agencies who have made these public commitments?
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