Why ESG is No Longer Optional for Building Brand Value

For years, Environmental, Social, and Governance (ESG) considerations were viewed as a “nice to have” or something that only mattered to niche markets. Today, that mindset is not just outdated—it’s dangerous. ESG is no longer optional. It’s a strategic imperative that directly impacts how brands are valued, trusted, and chosen.

As someone who has spent over two decades building brands across continents and industries, I’ve seen the shift firsthand. ESG is now a boardroom topic. It influences investor decisions, purchase behaviors, and employee loyalty. If your brand is not actively driving ESG outcomes, you’re not just missing an opportunity - you’re risking irrelevance.

ESG as a Brand Differentiator

There was a time when quality, price, and convenience were enough to win in the marketplace. Today, they are the minimum. Buyers—whether consumers or B2B decision-makers—are increasingly making values-driven choices.According to the 2023 PwC Global Consumer Insights Pulse Survey, 80% of consumers say they’re more likely to buy from companies that demonstrate ESG best practices. This is no longer a fringe expectation—it’s a mainstream requirement.

Brands that authentically integrate ESG into their DNA are not just attracting customers - they’re building trust. And trust is the most valuable brand currency in our hyper-connected, post-pandemic world.

Investors Are Watching, Too

The capital markets have moved quickly. Investors now view ESG performance as an indicator of long-term resilience and profitability. A 2021 study by McKinsey & Company highlighted that companies with strong ESG propositions create more shareholder value, access capital at lower costs, and deliver better financial performance over time.

In fact, Morningstar’s 2022 research revealed that ESG funds now consistently outperform traditional funds, particularly in risk-adjusted returns. ESG isn’t just about “doing good”—it’s about doing smart business.

The Talent Magnet

One of the most underestimated drivers of ESG adoption is the war for talent. Millennials and Gen Z—the largest generational cohort in the workforce—are values-led employees. They are actively choosing to work for companies whose purpose aligns with their own.

The Deloitte Global 2023 Gen Z and Millennial Survey found that nearly half of these workers have rejected job offers from companies they perceive as lacking a commitment to ESG or sustainability.

In my own career, I’ve built and led marketing teams from Johannesburg to Houston, and the pattern is clear: the most passionate, high-performing people want to work for companies that care. ESG is now part of the employee value proposition.

Greenwashing Won’t Cut It

But here’s the rub—consumers and stakeholders are more ESG-savvy than ever. Superficial commitments or greenwashing will erode trust faster than saying nothing at all. Real ESG integration requires transparent reporting, measurable impact, and consistent communication.

Brands that get it right do more than slap a sustainability badge on their packaging. They embed ESG into product innovation, supply chain decisions, governance practices, and community engagement.

Where to Start?

If your organization is at the early stages of ESG adoption, here’s what I recommend:

• Anchor ESG to your brand strategy. It’s not a separate initiative—it should be part of your brand’s value proposition.

• Set measurable, transparent goals. Whether it's reducing carbon emissions, improving diversity, or strengthening governance, show your progress.

• Tell the whole story. Stakeholders want to know not just what you’ve achieved but how you got there.

ESG isn’t just a compliance exercise. It’s a brand-building lever.

Final Thought

I’ve often said: the strongest brands aren’t just known—they’re trusted. ESG is the new frontier of that trust. Brands that lead with purpose, authenticity, and measurable impact won’t just survive—they’ll thrive.

If you’re still viewing ESG as optional, I’d argue you’re already behind.

References:

• Deloitte. (2023). 2023 Gen Z and Millennial Survey. Deloitte Insights.

• McKinsey & Company. (2021). Five ways that ESG creates value.

• Morningstar. (2022). ESG Funds Continue to Outperform Peers.

• PwC. (2023). Global Consumer Insights Pulse Survey.