Deborah Praga
Global ESG Director, AlixPartners
Companies should strategically consider environmental, social and governance (ESG) because it brings a competitive advantage, builds resilience, and future-proofs businesses.
It can be tempting for companies to take a short-term view of their ESG responsibilities. As long as they’re ticking the box marked ‘compliance,’ they’re happy to move on to the next matter. Yet, that misses the point of ESG completely, insists Deborah Praga, Global ESG Director at leading global consultancy AlixPartners.
ESG builds a competitive advantage and resilience
“There are very real environmental disruptions coming down the tracks that are going to impact businesses in serious ways,” says Praga. “Say, you sell coffee or chocolate-based products. You might not be able to do so in 20 years if those ingredients aren’t easily available. As consultants, we help our clients build resiliency and plan for the long term. We don’t simply leave companies with a glossy report of our findings, either. We roll up our sleeves and operationalise our recommendations.” Only after real action do ESG practices become a bonus as a marketing tool and employer brand benefit.
Only after real action do ESG practices
become a bonus as a marketing
tool and employer brand benefit.
Recognising the big-picture benefits of ESG
Some are already well aware of the intrinsic value of a robust ESG strategy. “For instance, AlixPartners is working with a British consumer products company that wants help with corporate sustainability reporting,” says Praga. “This involved taking a deep dive into their supply chain, which uncovered areas for optimisation. We found new opportunities that could help reduce reliance on certain markets or product mixes in the future.”
It’s always gratifying when clients see beyond compliance and recognise the ‘big picture’ benefits of ESG, admits Praga — such as a French furniture brand that manufactures products in Asia. “They wanted to understand if reshoring their product line would help minimise costs and improve sustainability,” she remembers. “So, we analysed the carbon, labour, cost and environmental implications of bringing their production back to Europe. They could then weigh each factor and decide what made the most sense. They wanted to do what was best for their business and the planet but understood that they didn’t have all the answers. That’s where AlixPartners comes in.”
