Tablecloth CEO Nelli Garton Talks ESG and ROI
SAN DIEGO, CA / ACCESSWIRE / September 17, 2024 / Bring up the subject of environmental, social, and governance (ESG) practices with corporate finance professionals, and chances are you'll be met with a wary grin. For CFOs and others, the rule of thumb is that if it doesn't add to the bottom line, it's not worth doing.
This attitude is very much in line with the Friedman doctrine, also called shareholder theory. Friedman introduced the theory in a 1970 essay for The New York Times titled "A Friedman Doctrine: The Social Responsibility of Business is to Increase Its Profits."
However, as startling as the realization is to many, the 1970s is a long time ago. Business has changed and many theories penned during this decade are as dead as disco.
ESG policies are today more important than ever. PwC research indicates that a hefty 76% of consumers would avoid buying from firms that neglect environmental, employee, or community well-being, highlighting the direct impact of ESG practices on consumer behavior. Investors are also focused on ESG with 89% taking ESG factors into account in their investment decisions, compared to just 13% who see it as a passing trend.
The takeaway is clear, ignore ESG at your peril, because failure to prioritize ESG is going to affect brand loyalty, dry up that sales funnel and limit an organization's ability to raise capital.
One person who is at the coalface of ESG advisory is Tablecloth Co-Founder and CEO, Nelli Garton, and she is passionate about how ESG can add value to an organization's activities. However, she does have a caveat, ESG needs to be the focus of not only externally focused activity, but it needs to be an internal focus as well in order to deliver value.
The Devil's in the Detail
Tablecloth is one of America's leading providers of ESG and impact management software and services and boasts top-tier clients like Pharos Capital, Crestview and American Securities (to mention only a few). Nelli Garton has been instrumental in advising these organizations on how they can best leverage ESG to increase competitiveness.
"Companies in today's rapidly evolving business landscape are improving their competitiveness and increasing market share by capitalizing on consumer and investor ESG requirements by adopting new technologies, ideas, and initiatives to drive growth and innovation, but the true differentiator lies not just in generating ideas but in their effective implementation. As John Doerr famously said, "Ideas are easy, execution is everything."
In other words, the devil lies in the details of how organizations implement ESG initiatives.
According to Garton, inadequate implementation breeds frustration, resistance, and shadow processes that undermine progress. To ensure success, meticulous planning is essential, encompassing change management strategies, comprehensive training, clear documentation, open communication, and a commitment to continuous improvement. A comprehensive approach fosters adoption, empowers teams, and paves the way for sustainable results.
Mind the Gap
ESG (Environmental, Social, and Governance) reporting has grown in importance as investors and stakeholders push for greater transparency and accountability. Many companies, however, find it challenging to transition from merely reporting their ESG efforts to fulfilling their commitments.
This "implementation gap" arises when well-meaning policies aren't supported by the necessary systems, processes, and resources for successful execution.
As Garton puts it, "the true purpose of ESG initiatives extends far beyond producing a polished report. Organizations often fall short in turning their aspirations into real action, limiting their ability to make a meaningful impact on ESG goals."
The goal is to achieve tangible outcomes like risk mitigation and value creation. This requires careful planning, smooth coordination, transparent communication, strong data analysis, and most importantly, securing genuine team buy-in. With buy-in, everyone understands the 'why' and 'how' behind ESG goals, driving collective progress.
The Implementation Challenge
Successful ESG implementation hinges on prioritizing results over reporting. Organizations need to shift from merely disclosing ESG performance to driving measurable improvements. This involves setting clear goals, integrating ESG into decision-making, and establishing effective monitoring and evaluation mechanisms.
Garton views implementation as the glue that will help an organization build a bridge between theory and results. "Be it adopting new technologies or rolling out ESG initiatives, effective execution is crucial. When organizations invest in implementation, they unlock the full potential of their efforts, drive meaningful change, and secure long-term competitiveness."
A Kinder Capitalism
Companies in search of a competitive advantage are starting to take Environmental, Social, and Governance (ESG) initiatives seriously. Although initially driven by regulatory compliance and risk management, this year will mark a turning point as businesses overhaul their approach to ESG best practices. ESG issues will transition from being optional extras to integral elements of corporate strategy, and a priority for organizations focused on generating sustained value.
The return on investment provided by ESG can be staggering. In 2021, HP generated $3.5 billion in commercial sales from "new sales in which sustainability criteria were a known consideration and was supported actively by HP's Sustainability and Compliance organization and Commercial organization."
ESG is here to stay, and for those financial professionals who are at the helm of organizations across America, the penny has dropped. It's wonderful to make a contribution to the welfare of society and to protect our planet, but there's a strong financial incentive for developing an ESG strategy that works.
As Nelli Garten says, "Implementing a sound ESG strategy isn't a ‘nice-to-have,' it's a strategic necessity."
To learn more about Tablecloth's unique service and product offerings and the thought leadership of CEO Nelli Garton, visit the Tablecloth website.
Contact Information:
Tablecloth
Nelli Garten
info@tablecloth.io
https://about.tablecloth.io/
SOURCE: Tablecloth
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