Despite developments across the pond and ongoing debate on their relevance, Environmental, Social and Governance (ESG) standards remain important. It’s not just about being ethical, it’s good business.

In some ways, it doesn’t matter where you stand in the climate debate; if sustainability initiatives improve efficiency, save money or create jobs (as they so often do), then it just doesn’t make sense not to implement them.

The same goes for the Social and Governance pillars. Looking after our communities and our people has wider benefits. A report by the Integrated Benefit Institute, for instance, concludes that women’s use of health benefits can influence workplace outcomes such as attendance, retention and productivity.

“ESG – short for Environmental, Social and Governance – is a set of standards measuring a business’s impact on society, the environment, and how transparent and accountable it is.” British Business Bank

In  today’s world, companies need to have clear ESG policies in place. This has become the norm, with over 4,200 companies and 23,000 organizations globally setting science-based emissions reductions targets, for instance.

The women’s health industry, as an emerging and burgeoning sector, and one that promotes female empowerment and wellbeing, has the opportunity to set a benchmark on the ESG front. And here too, there is a commercial incentive. Businesses that prioritise ESG are considered to be less risky and more resilient by investors.

In 2021, the Confederation of British Industry found that two-thirds of investors take ESG factors into account when investing in a company. Depending on what you’re reading, that proportion has dropped more recently – but not to insignificant levels. And in fact, the Governance pillar is a growing priority.

However, as my colleague Paul discusses every week in his ESG-focused newsletter, there’s no need to jump the gun and try to do it all at once. We’re all getting more savvy to greenwashing, and there’s a risk of consumers becoming jaded with climate claims.

So it’s worth taking your customers along with you on your journey. One company we work with produces a ‘Responsible Action’ report every year, detailing the targets they’ve set and the progress they’re making – on all aspects of ESG. It keeps them accountable and transparent.

Such initiatives take time – and many businesses in the femtech and women’s health space are already at their limit. So a considered, strategic and organised approach makes even more sense.

Of course, you may need help communicating your activities to investors and customers. That’s where we come in. To chat, book time to meet with me or email me at sarah@thoughtsparkagency.com.

In the same way that businesses can benefit from a more sustainable approach, so too can our countries. In this piece, Mia Mottley, Barbados Prime Minister and climate campaigner, highlights the potential economic benefits of tackling the climate crisis and suggests methods of raising funds to finance climate initiatives. Whatever you think of her ideas, it’s always heartening to see a leader cutting the nonsense and looking at the issue practically.