The ROI of ESG: Why ESG Makes Good Business Sense
The ROI of ESG: Why ESG Makes Good Business Sense
August 2026
Corporate sustainability is no longer a peripheral exercise that's simply good for the planet or brand reputation. More organisations are looking at their practices more holistically and embedding environmental, social and governance (ESG) principles into their core business strategy to improve efficiency, reduce risk, strengthen stakeholder relationships and create long-term commercial value. The greatest return comes from focusing on the ESG issues that matter most to your business and measuring progress over time.
Here, we explore some of the key ways businesses can maximise the return on investment (ROI) of their ESG efforts. We share examples from ESGmark® Certified organisations already seeing measurable benefits and highlight practical resources to help you measure, monitor, report and continually improve ESG performance.
Improving operational efficiency and reducing costs
Focussing on sustainability helps organisations identify opportunities to reduce waste, improve resource efficiency and lower operating costs. Measures such as reducing energy and water consumption, minimising waste and optimising supply chains help companies reduce costs as well as environmental impact. Operating more efficiently also helps businesses strengthen resilience to rising costs and supply chain disruption while improving long-term profitability.
Sustainable products and services can also create efficiencies for customers, enhancing your commercial offering. For example, events company Sust helps clients reduce costs and improve efficiency by designing events with energy efficiency, waste reduction, and smarter resource use in mind.
Another example is Natural Transition, whose environmentally friendly soil blend RTN Soil enables crematoriums to replace plants less frequently, reducing maintenance requirements while improving the experience of staff and bereaved families by helping displays remain healthy for longer.
Preparing for ESG reporting and creating commercial opportunities
Businesses are operating in a changing ESG reporting landscape. While mandatory reporting currently applies mainly to larger organisations, many SMEs are already being asked to provide ESG information by customers, investors and supply chain partners. Collecting reliable ESG data now helps businesses respond confidently to these requests, prepare for future reporting requirements and reduce the risk of greenwashing.
Miracle Design and Play, a leading supplier of outdoor play areas, has seen this growing demand firsthand. With clients across the housing sector facing their own reporting requirements, the company is increasingly being asked to demonstrate its sustainability credentials. As Laura Buckley, Compliance Officer, explains: “Increasingly, our clients are asking for us to validate our credentials...[they] all want to know that we are sourcing all of our materials sustainably, that nobody in our supply chain is a victim of modern slavery, and so on. The ESGmark® Certification became a really powerful tool to show that.”
Strengthening customer trust, client relationships and brand reputation
Consumers are placing greater value on businesses that operate responsibly, with 69% of UK shoppers saying they take sustainability into account in purchasing decisions (BearingPoint, 2026). By demonstrating credible sustainability action, organisations can strengthen their brand reputation, build customer trust and foster long-term loyalty.
Beyond strengthening their own reputation, organisations can also use ESG to create value for clients and deepen commercial relationships. Square Mile Farms, for example, helps clients create healthier, more engaging workplaces. Their indoor hydroponic farms and hands-on harvest events support employee connection and physical and mental wellbeing. The service contributes to WELL and BREEAM building ratings and provides measurable ESG data to support clients' sustainability reporting.
Continuum Financial Services demonstrates how embedding ESG into both its own business and its client offering can strengthen commercial relationships. As Simon Reeve, Head of Operations, explains: "Embedding ESG into the way we work helps us create deeper, more authentic relationships with clients." Through its workplace offering, Continuum also helps clients achieve their own ESG objectives, delivering measurable outcomes including a 20% reduction in staff turnover for one technology client and a 12% reduction in employee benefit costs, alongside a 30% increase in engagement with employee benefits, for a retail client.
Attracting and retaining employees
Employees are increasingly seeking purpose-driven workplaces where their values align with those of their employer. Research from Deloitte (2023; 2024) found that 27% of employees consider a potential employer’s position on sustainability before accepting job offers, and many Gen Z and Millennial workers have turned down employers whose values did not align with their own. These factors also play an important role in employee retention, with businesses that prioritise workplace wellbeing more likely to improve productivity and build long-term organisational resilience (McKinsey & Company, 2026; World Economic Forum, 2025). Organisations that demonstrate a genuine commitment to sustainability, employee wellbeing, fairness and transparency are therefore better positioned to attract and retain talented people.
Accountancy firm Rickard Luckin demonstrates how investing in workplace culture can benefit both employees and clients. Built around its Work Well, Live Well culture, the firm invests in an environment where people are supported professionally and personally, encouraged to build rewarding careers and empowered to thrive. This commitment recently earned Rickard Luckin 3-star accreditation from Best Companies, recognising world-class levels of employee engagement based on independent staff feedback. As Kate Bell, Managing Director at Rickard Luckin explained: "When people feel engaged and believe in what we stand for, they bring energy, insight and commitment to every client relationship."
Better access to finance and stronger business resilience
ESG due diligence and risk assessment are becoming an important part of investment decision-making, with 78% of global investors believing companies that provide sustainability information see better investor engagement (PwC, 2025). Investors, lenders and insurers want confidence that organisations understand and actively manage risks, as this demonstrates long-term resilience and viability. ESG risks such as resource scarcity, supply chain disruption, poor labour practices, regulatory breaches and reputational damage can impact business performance. Not only this, but 85% of global insurers believe ESG will impact all areas of their business, including investments, risk management, internal audit and underwriting (PwC, 2022). By identifying and addressing these risks early, organisations can strengthen resilience, build stakeholder confidence, improve access to finance and potentially benefit from more favourable borrowing or insurance terms.
A strong ESG framework also provides vital stability and alignment during periods of industry and organisational change. For businesses navigating evolving landscapes, clear standards ensure that core values around sustainability and community remain central to operational decisions.
"Adaptability is key in production, but your values shouldn't change," says Laura Coulthart, Operations Manager at LS Productions. "Our ESGmark® Certification ensures that responsible practice remains embedded in our business, which in turn helps us attract and build strong relationships with clients who value those same standards."
Final thought: How to maximise the ROI of your ESG strategy
The organisations seeing the greatest value from ESG are those that measure their impact, communicate it transparently and embed sustainability into everyday decision-making. By setting clear goals, collecting reliable data and demonstrating credible progress, businesses can build trust with stakeholders and realise the long-term commercial benefits of a strong ESG strategy.
Explore more: Download our KPIs for ESG guide to discover how to effectively monitor, report, and improve your organisation’s impact.
How ESGmark® can help
At ESGmark® we help organisations to credibly demonstrate and improve their Environmental, Social and Governance (ESG) credentials. We do this through ESGmark® Certification, carbon footprint measurement, and sustainability support. Speak to our friendly team to get started today by contacting us.
Sources:
BearingPoint (2026). Sustainable Retail Barometer 2025 UK: Key Consumer Trends. [online] Available at: https://www.bearingpoint.com/en-gb/insights-events/insights/sustainable-retail-barometer-2025-uk-edition/.
Deloitte (2023). Workers of all ages are calling for sustainability. Are you answering? [online] Available at: https://action.deloitte.com/insight/3656/workers-of-all-ages-are-calling-for-sustainability-are-you-answering.
Deloitte (2024). Gen Zs, millennials positive on purpose. [online] Deloitte.com. Available at: https://action.deloitte.com/insight/3962/gen-zs-millennials-positive-on-purpose.
DNV. (2025). New research reveals: ESG regulation creates strategic advantage for businesses globally. [online] Available at: https://www.dnv.com/news/2025/nesg-regulation-creates-strategic-advantage-for-businesses-globally/.
McKinsey & Company (2026). HR Monitor 2026: A turning point for the people function. [online] McKinsey & Company. Available at: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/hr-monitor.
PwC (2022). ESG impact on the insurance industry: PwC. [online] PwC. Available at: https://www.pwc.com/us/en/industries/financial-services/library/esg-insurance-industry.html.
PwC (2025). PwC’s Global Investor Survey 2025.
World Economic Forum (2025). Thriving Workplaces: How Employers can Improve Productivity and Change Lives 2025. [online] Available at: https://www.weforum.org/publications/thriving-workplaces-how-employers-can-improve-productivity-and-change-lives/.