Is ESG on your radar, but you’re not sure where to start? Environmental, Social, and Governance goals are fast becoming a must-have for any business that wants to stay competitive, credible, and compliant. Investors expect it. Regulators demand it. And today’s employees are actively seeking it. Getting serious about ESG is a smart move for your business and your brand. But setting ESG targets is just the beginning. To make real progress, you need a clear, achievable strategy.
In this guide, we’ll explain what ESG really means, why it matters, and the practical steps your business can take to turn ambition into action. From reducing your environmental impact to strengthening governance and improving social responsibility, we’ll also show how ISO Standards can support your journey — and introduce a simple way to manage it all.
What is ESG?
ESG stands for Environmental, Social, and Governance – three key areas businesses use to measure their impact beyond profit.
Environmental
The environmental part of ESG is about how your business affects the planet. This includes:
- Reducing carbon emissions and energy consumption
- Managing waste and resources better
- Choosing more sustainable suppliers
- Staying compliant with environmental legislation like The Environment Act 2021 & The Climate Change Act 2008
Social
The social pillar of ESG looks at how your company interacts with its employees, customers, and the community.
Key focus areas include:
- Protecting employee health, safety, and wellbeing
- Promoting diversity, equity, and inclusion across your workforce
- Upholding fair labour practices throughout your supply chain
- Engaging with your local community and supporting social initiatives
- Training and developing your people to build long-term, meaningful careers
Having a strong social plan helps your business build a great place to work, attract the best people, and keep your customers loyal.
Governance
Governance is about the internal systems, policies, and how decisions are made in your company to make sure everything is ethical and transparent. This includes:
- Clear leadership and accountability
- Compliance with laws and regulations, including data protection and financial reporting
- Keeping your systems and data safe from cyber attacks
- Transparent decision-making and reporting practices.
Good governance makes investors trust you more and lowers the risk of legal and reputation problems.
ESG is no longer just a corporate buzzword, it’s a critical factor in long-term business success. Investors increasingly favour companies with strong ESG commitments, consumers expect brands to act responsibly, and job seekers prioritise ethical workplaces. In fact, studies show that 42% of young professionals have considered leaving a job due to employers’ weak ethical values.
By understanding and using ESG principles, your business can prepare for the future while also making a positive difference in the world.
Why is ESG important for businesses?
Companies that integrate ESG into their strategy often see meaningful improvements in reputation, operational performance, and long-term financial outcomes. Here are four key benefits of getting ESG right:
1. Stronger brand reputation
Consumers are increasingly choosing brands that align with their values. Businesses that demonstrate a commitment to sustainability, ethical labour practices, and social responsibility can build trust, improve customer loyalty, and stand out from competitors.
2. Increased investor appeal
Investors are prioritising ESG when making financial decisions, as strong ESG practices indicate lower long-term risk. Companies with high ESG ratings often attract more investment, benefit from lower borrowing costs, and enjoy increased shareholder confidence.
3. Regulatory compliance and risk reduction
The increase in ESG reporting provisions issued by governmental bodies has grown 74% over the last four years. This shows that more governments are mandating that companies publish ESG-related data, particularly around environmental impact, employee welfare, and data security. Proactively aligning with ESG standards helps businesses stay compliant, avoid legal issues, and reduce financial and reputational risks.
4. Competitive advantage in recruitment
ESG is becoming a major factor for job seekers, especially younger professionals who want to work for ethical and sustainable companies. A strong ESG strategy helps attract and retain top talent, improve employee satisfaction, and create a positive workplace culture.
How to set ESG goals
If you want to make a real impact and build a more sustainable business, setting clear, achievable ESG goals is a great place to start. Here’s a simple way to help you get those goals in place:
1. Identify material ESG issues:
- Carry out a materiality assessment to identify the most significant ESG issues for your industry and stakeholders. This involves engaging with employees, customers, investors, and local communities to understand their priorities.
- Focus on issues that have the greatest impact on your business and stakeholders, such as carbon emissions, labour practices, or data security.
2. Establish SMART goals:
- Make sure your ESG goals are Specific, Measurable, Achievable, Relevant, and Time-bound (SMART).
- For example: Instead of “reduce carbon emissions,” aim for “reduce carbon emissions by 20% by 2025.”
3. Align with industry standards and frameworks:
- Use established frameworks like the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD) to guide your goal-setting process.
- Align your goals with relevant ISO Standards, such as ISO 14001 for environmental management.
4. Set baseline measurements:
- Establish baseline data to track progress over time. This involves collecting and analysing current performance metrics related to your identified ESG issues.
- Use this data to set realistic targets and monitor improvements.
5. Prioritise and phase goals:
- Prioritise your ESG goals based on their impact and feasibility.
- Develop a phased approach to implementation, focusing on quick wins and long-term objectives.
6. Integrate goals into your business strategy:
- Embed ESG goals into your overall business strategy and operational plans.
- Build ESG into everyday decision-making across every part of your business.
7. Communicate and engage:
- Communicate your ESG goals to stakeholders, including employees, investors, and customers.
- Engage with stakeholders to gather feedback and ensure alignment.
8. Regularly review and update:
- Regularly review your progress and update your goals as needed.
- Adapt to changing regulations, industry trends, and stakeholder expectations.
By following these steps, your business can set meaningful and actionable ESG goals that drive positive change and contribute to long-term sustainability.
How to achieve your ESG goals
Once you’ve set your ESG goals, it’s time to put a clear plan in place. This will help you turn goals into measurable results. Here’s how to take practical steps across the three key areas to make real progress.
1. Environmental: Reducing your carbon footprint
Sustainability should be at the core of your business operations. Here are some simple ways to make it happen:
- Improve energy efficiency: Look at switching to renewable energy sources (like solar or wind), and upgrade facilities to reduce energy consumption — from lighting to insulation and equipment.
- Strengthen waste management: Introduce or enhance recycling programmes, reduce single-use plastics, and find ways to minimise overall waste generation across your business.
- Choose sustainable sources: Partner with eco-friendly suppliers and choose sustainable raw materials such as FSC-certified wood, recycled plastics or low-impact materials such as organic cotton.
- Offset unavoidable emissions: Invest in carbon offset programs to balance emissions and contribute to environmental initiatives.
Taking these steps not only reduces your environmental impact — but it can also lower operating costs, improve brand reputation, and help future-proof your business.
2. Social: Building a positive workplace and community impact
The social part of ESG focuses on people, employees, customers, and the wider community. Here are some impactful ways to strengthen this area:
- Prioritise employee wellbeing: Offer mental health support, flexible working options, and strong Health & Safety measures.
- Promote diversity and inclusion: Make sure to have fair hiring practices and create an inclusive workplace culture where everyone feels valued and supported
- Ensure fair wages and ethical labour practices: Meet or exceed industry wage standards and ensure ethical treatment of workers across your supply chain.
- Engage with the community: Support local charities, encourage employee volunteering, and give back to the communities in which you operate.
A strong social strategy helps improve employee satisfaction, customer trust, and brand loyalty.
3. Governance: Ensuring ethical and transparent business practices
Governance is about how you run your business. Leading with integrity and accountability, making sure decisions are made ethically and transparently, and in line with legal and regulatory requirements. Here’s how you can strengthen governance across your organisation:
- Implement transparent reporting: Regularly publish ESG reports outlining progress and key initiatives.
- Adopt ethical business practices: Establish clear policies to prevent corruption, bribery, and unethical behaviour.
- Strengthen cyber security and data protection: Safeguard customer and business information by adopting robust data protection practices, and consider achieving Standards like ISO 27001 to demonstrate commitment to information security.
- Encourage strong leadership and accountability: Ensure company leadership is committed to ESG principles and sets measurable targets.
By embedding strong governance practices, your business can maintain trust with stakeholders, investors, and customers while reducing legal and reputational risks.
Bringing it all together
Improving your ESG performance is an opportunity to shape a business that’s more responsible, sustainable, and ready for the future. By taking action in these three areas, your company can make a real difference and see good results in the long run.
Using ISO Standards to strengthen your ESG strategy
ISO Standards provide a structured framework for businesses looking to improve their ESG performance. By implementing the right certifications, you can strengthen your sustainability efforts, support employee wellbeing, and embed better governance across your business — all while building trust with customers, stakeholders, and regulators.
1. ISO 14001 – Strengthening environmental responsibility
ISO 14001 focuses on environmental management, helping you:
- Reduce waste and energy consumption.
- Improve compliance with environmental regulations.
- Set measurable sustainability targets and track progress.
By adopting ISO 14001, you can minimise your environmental footprint while improving efficiency and regulatory compliance.
2. ISO 45001 – Prioritising employee Health & Safety
ISO 45001 supports the social part of ESG by ensuring a safe and healthy workplace. It helps you:
- Identify and reduce workplace hazards.
- Improve employee wellbeing and job satisfaction.
- Reduce the risk of accidents and costly disruptions.
A strong Health & Safety framework not only protects employees but also enhances your business’ resilience and reputation.
3. ISO 27001 – Strengthening governance through data protection
ISO 27001 is critical for governance, as it sets the benchmark for information security management. This certification helps you:
- Protect sensitive data from cyber threats.
- Helps you comply with data protection laws.
- Strengthen customer and stakeholder trust through robust security practices.
Cyber attacks are becoming more frequent and sophisticated. In fact, there was a 30% increase in cyber attacks in the second quarter of 2024 compared to the same period in the second quarter of 2023. With cyber threats on the rise, having a system in place – like an information security management system aligned with ISO 27001 – has never been more essential, especially for businesses handling confidential or personal data.
Adopting ISO Standards gives your business a structured, measurable way to align with ESG principles. Not only do they enhance compliance and operational efficiency, but they also demonstrate a commitment to responsible business practices, boosting credibility with investors, customers, and employees.
Want to learn more about how to achieve your ESG goals? Download our guide on sustainability and your business.
Achieve your ESG goals with Be Certified
Navigating ESG compliance can be complex, but Be Certified makes it easier, with multiple ways to support your ESG journey, whether you’re looking for a complete solution or targeting specific areas.
If you want to tackle ESG holistically, ESG Essentials is the perfect place to start. This all-in-one solution helps you align with ESG best practices and stay ahead of evolving regulations.Our ESG software simplifies complex frameworks and gives you step-by-step guidance with clear, concise tips that make ESG approachable and achievable for any business.
Looking to go further?
If you want to strengthen your ESG strategy through certification, we can also support you to achieve ISO Standards that align directly with ESG principles, including:
Our specialist platforms and expert guidance make the certification process straightforward, giving you the tools and confidence to meet your goals faster.
Whether you’re just beginning your ESG journey or looking to refine your approach, Be Certified gives you everything you need to achieve your goals.
Not sure where to start? Our team is here to help or start your free demo today.
