The business world is undergoing a profound shift. It's no longer enough for companies to chase profits alone. Today’s stakeholders – investors, customers, and employees – expect businesses to stand for something meaningful, contribute to a better world, and operate with integrity and transparency. In short, they want brands with purpose and impact. 

This is where Environmental, Social and Governance (ESG) strategy becomes essential. ESG is no longer a “nice-to-have” – it’s a business imperative and a marker of responsible operations. 

Driving this shift is a growing demand for transparency and a commitment to positive environmental, social, and community outcomes. 

Despite economic pressures, consumers are factoring ESG into purchasing decisions, according to PwC’s 2024 Voice of the Consumer Survey: 

• Sustainable Products: 41% of Australian consumers report buying more products with reduced climate impact. 

• Reduced Consumption: 36% are making more intentional purchases. 

• Ethical Practices: 69% are willing to pay more for products from ethically reputable companies. 

• Local Sourcing: 76% would pay more for locally made or sourced products. 

• Sustainable Materials: 70% are open to paying more for goods made from recycled or eco-friendly materials. 

Investors are also paying close attention. Companies with strong ESG credentials are seen as more resilient, better equipped to manage risk, build trust with customers, and attract top talent. 

And when it comes to that talent, today’s workforce wants to align with employers that make a measurable, positive impact. A clear ESG strategy helps attract and retain the best people. 

How does ESG translate into brand preference? 

When a company embeds ESG into its core strategy, it builds stronger stakeholder relationships and earns long-term trust. Customers become loyal advocates when they believe in a brand’s values. Employees are more engaged when their work feels meaningful. Investors gain confidence in companies committed to sustainable, responsible growth. 

What should you consider when building an ESG strategy? 

A successful ESG strategy requires a significant commitment of resource – both upfront and ongoing. It needs thoughtful planning, consultation and iteration, and ultimately to be successful, it requires whole-of-business support and integration. Focus on ESG pillars where you can make the most impact and matter most to your stakeholders, set measurable goals, and report transparently – even when you miss the mark. Communicating your ESG story clearly and authentically – both internally and externally – is key to sustained engagement. 

What are the challenges in developing an ESG strategy? 

Developing a meaningful ESG strategy can feel complex. Some stakeholders may question the commercial value or fear the risk of greenwashing. Balancing short-term profitability with long-term sustainability is not always easy. Measuring impact and maintaining momentum takes commitment. But the rewards outweigh the challenges. With the right expertise and partnerships, businesses can create a clear, credible roadmap. 

Looking ahead, the brands that lead will be those that fully embrace purpose and embed it in every part of their business – earning loyalty, inspiring teams, and gaining investor trust. 

By committing to purpose-driven growth, companies not only enhance reputation but also drive innovation, unlock new opportunities, and leave a lasting positive legacy. 

In uncertain times, it’s tempting to hesitate. But failing to act on ESG means falling behind. The future belongs to those who lead with purpose and contribute to a better world. 

Interested in exploring or developing your own ESG narrative and strategy? Check out our History Matters offering and reach out.