ESG (Environmental, Social and Governance) has become the latest buzzword in business circles, boardrooms and investor reports. And while it’s gaining momentum, let’s be real: most businesses are still figuring out what it means, whether it applies to them, and how worried they need to be.
If that sounds like you, take a breath. You’re not alone.
Despite the noise, the reality is this: ESG doesn’t need to be overwhelming, and you don’t need to be an expert to navigate it well. This isn’t about scrambling to tick every box. It’s about understanding what matters most to your business, your people, and your future. Then, and only then, making sure you’re heading in the right direction.
Let’s break it down.
Table of Contents
What Even Is ESG?
At its core, ESG is a framework. A way of looking at how a business performs not just financially, but ethically and sustainably.
- Environmental: How are you impacting the planet? Think carbon footprint, resource use, waste, energy, biodiversity.
- Social: How are you treating people? This includes employees, communities, customers and supply chains.
- Governance: How are you running the business? Transparency, leadership, accountability and ethical decision-making.
It’s not a checklist or a standard. It’s a lens. And while ESG reporting is mostly aimed at large companies right now, the principles behind it are valuable for every business, no matter the size.
Why It Feels So Complicated And What You Should Do
One of the main reasons ESG feels like a minefield is because it tries to be everything at once. Legal risk, brand value, investor reassurance, ethical accountability. That’s a lot to take in.
But here’s the thing: you don’t need to do all of it to do something meaningful.
If you’re a small or medium business, ESG is not about preparing for investor panels or formal reports. It’s about asking smart, honest questions:
- Are we using our resources responsibly?
- Are our employees treated fairly and included?
- Are we acting with integrity in the way we make decisions?
If you’re thinking about those questions, you’re already engaging with ESG, just in plain English rather than industry jargon.
Where Most Businesses Should Actually Start
You don’t need a Head of ESG or a 70-page strategy document with each team completing tasks each quarter. You just need a few practical starting points. Here are three:
-Look at what you’re already doing.
Chances are, you’ve got ESG activity happening without calling it that. Inclusive hiring practices? Social. Recycling or energy-saving measures? Environmental. Clear leadership policies or strong culture? Governance.
Recognising what’s already in place gives you confidence and a great foundation to build from.
– Ask what matters to your stakeholders.
Whether it’s customers, employees or suppliers, ask: What do they care about? What do they expect from us? This keeps ESG grounded in real-world relevance rather than abstract metrics.
-Pick one thing and do it well.
You don’t have to tackle every issue at once. Choose a priority that aligns with your business values. Maybe it’s carbon reduction. Maybe it’s ethical sourcing. Maybe it’s transparency. Focus your energy there and let your ESG story grow naturally.
But What If We’re Asked About ESG Before We’re Ready?
That’s okay. Being honest about where you are is better than pretending you’re further along. Investors, clients, and even new recruits value transparency over perfection.
Try something like this:
“We’re actively building our approach to ESG by focusing first on the areas that are most relevant to our business and our people. We’re not reporting formally yet, but we’re laying the groundwork in areas like [X] and [Y], and we’re committed to growing responsibly.”
Confidence doesn’t come from having it all figured out. It comes from knowing where you stand and where you’re headed.
Why It’s Worth Paying Attention (Even If It’s Not Mandatory Yet)
While ESG regulations may not be knocking at your door just yet, things are shifting fast. Larger companies are already under pressure to report, and many are now looking to their suppliers and partners to do the same.
Staying ahead of the curve gives you two big advantages:
- You’ll be ready when expectations catch up (and they will)
- You’ll stand out in the present moment (as a business that’s thinking ahead)
Being proactive on ESG can boost trust, win contracts, and attract talent. That’s not just compliance. That’s a competitive advantage.
You don’t need to be an ESG expert. You just need to be intentional.
Start where you are. Focus on what matters to your business. Build as you go. ESG is not a pass/fail exam. It’s a journey of doing business better.
And the best way to navigate it? Ask questions, stay curious, and don’t let perfection hold you back from making progress. We’d be happy to answer any of your questions should you have them.
