ESG stands for Environmental, Social, and Governance.ESG represents a set of environmental and socially minded investment vehicles where, for example, the companies comprising a mutual fund have ESG programs in place and progress on E, S and G categories are measured and reported to industry standards.

Although there is a lot of overlap, a few key differences exist between ESG and Sustainability. At its core, ESG is a financial sustainable investment vehicle, and a set of criteria is used to both report and measure progress. ESG criteria are often time-bound, progress is measured, and outcomes are publicly reported via a variety of reporting mechanisms. Sustainability is a broadly used term and could include any of the E, S, or G topics.

Having an ESG program established presents many advantages. Institutional, Venture Capital and Private Equity investors, among others are requiring companies to have ESG programs established to reduce business and financial risk associated with climate change. In addition, ESG programs are proven to produce topline growth. According to Harvard Business Review, companies with ESG programs outperform their competitors. Whether it is reducing risk, attracting talent, meeting customer demand, or driving business growth, many reasons exist to establish an ESG program.

Sustainability can help your business reduce costs, reduce risks, improve brand reputation, meet investor and consumer demands, and create new business opportunities.

Sustainability consulting services can benefit businesses from almost every industry, including: manufacturing, retail, food, apparel, healthcare, consumer products and transportation. Any industry that has operations, sells or manufactures products, or works with a supply chain most likely has opportunity to improve sustainability.

According to NASDAQ, companies with ESG programs attract and retain better talent.

A recent McKinsey study outlines that organizations with ESG programs have a 10% lower cost of capital in addition to reduced risks.