ESG: a passing trend or an unavoidable revolution?

ESG: a passing trend or an unavoidable revolution? “6 Min. to Understand” with Pierre Léonard. Midoricast: Podcast #207

ESG, every decision counts. Today, businesses and entrepreneurs are facing a major challenge: how to reconcile performance and responsibility?

Leave a voicemail message for Pierre Léonard with a question, a comment, some encouragement or a thank you here!

ESG (Environment, Social, Governance) is no longer an option, but a necessity. However, behind this acronym lies much more than just a box to tick.
In this episode of “6 minutes pour comprendre“, Pierre Léonard sheds light on the genuine issues surrounding ESG and its tangible impact on businesses.

• Why adopt a sincere and measurable approach?
• What real benefits can be expected?
• What pitfalls should be avoided?

From young talent to investors, via cost reduction and innovation, integrating ESG means gaining a competitive edge and anticipating the world of tomorrow. But beware of greenwashing: the key lies in authenticity and action.

Ready to take the first step towards a more sustainable business? Listen to this episode now and turn commitment into opportunity!

We provide an English transcript of this podcast in this article. However, if you are learning French (podcasts are a great way to train your brain to get used to a language, making it easier to learn or practice) or if you understand it as well, feel free to listen this episode here and subscribe to the podcast via Podcastics (If you follow this link, it is only valid for 7 days.), our podcast host. To subscribe, select your favorite app via the “See All” button in the list on our Linktree.

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Why this section?

We support companies that apply real and measurable ESG (Environmental, Social, Governance) approaches. Pierre, on the other hand, trains and supports them through this transition. Our approaches are different, but complementary: we encourage, he guides.

This choice also presents a real challenge: where do we draw the line?

Some companies mentioned in this section do not align with our current criteria, and we would refuse any collaboration with them unless they initiate a concrete change. But this is exactly where Pierre comes in: his role is to initiate this transformation.

This podcast does not aim to judge, but to inspire. The goal? To encourage rather than discourage, to guide rather than exclude.

Let’s commit together to a circular, sustainable, and inclusive economy. Listen, reflect, act… in 6 minutes.

The transcript of the podcast “ESG: a passing trend or an unavoidable revolution?”:

Michel Godart: [00:00:00] This podcast project is an initiative created and proposed by the ASBL “The Podcast Factory Org”, with the sponsorship of “transforma bxl – Innovation Playground”, and you can find all the episodes on the “What’s Your Story point be” website.

Michel Godart: [00:00:18] Welcome to another episode of “Midoricast”, your podcast about positive environmental initiatives. We’re in the “Six minutes to understand” section, so I’m going to give the floor to Pierre Léonard.

Pierre Leonard: [00:00:28] Good morning! “Six minutes pour comprendre” is the section that answers all the questions decision-makers have about sustainable development. I’m a sustainability facilitator, and today we’re going to explore the concept of sustainable development and, more specifically, how it translates into the business world as an acronym you may already have heard of: ESG. So what is it? In our first episode, we talked about the need to rethink our way of life in terms of development that enables us to care for our current needs without compromising the ability of future generations to do the same. And we have seen that sustainable development rests on three pillars: an environmental pillar, a social pillar and an economic pillar. That’s where the famous acronym ESG comes in, for Environment, Social, Governance. And it’s much more than just a buzzword, as we’ll see – it’s a comprehensive framework for assessing a company’s sustainability and ethical impact. You can think of it as a triple health check for your organisation.

Pierre Leonard: [00:01:39] With the environment pillar, we’re going to look at the way your company interacts with the planet: carbon footprint, waste management, consumption of raw materials, use of natural resources.

Pierre Leonard: [00:01:50] The social pillar will look at your impact on people: this includes working conditions, inclusiveness, diversity. Your relationship with local communities.

Pierre Leonard: [00:02:00] And finally, with governance, we’re going to see how you run your ship: your transparency, the way you conduct your business ethically, or not, well, we hope it will be ethically, and how your decisions are taken.

Pierre Leonard: [00:02:12] Why is it important for a company? Well, ESG isn’t just a fling, it’s really a necessity in terms of the situation we’re in at the moment, but also in terms of the people you deal with in your day-to-day business life, your investors, your clients and customers, your employees, but also the regulatory authorities, who are increasingly focusing on these criteria. A company that neglects its ESG can lose competitiveness – by missing out on public procurement contracts, for example – its reputation in the eyes of increasingly discerning consumers, and its attractiveness to both potential recruits and investors.

Pierre Leonard: [00:02:47] So the benefits of genuine ESG adoption go far beyond profit. A solid ESG approach will open up new opportunities. And also, and this is important, it will strengthen the resilience of your organisation against the challenges that we are already facing as a result of the multi-environmental crisis, which goes way beyond climate change.

Pierre Leonard: [00:03:14] In practical terms, for an organisation, a well thought-out ESG approach can bring many benefits. First of all, you’re going to attract talent; the younger generations are particularly sensitive to these issues and a strong ESG policy can really help you attract the best people.

Pierre Leonard: [00:03:30] You’re also going to get advantages in terms of innovation, we’ll talk later about the circular economy – the circular economy is an excellent way of looking for sustainable solutions, solutions that can be profitable, for example with the filing of patents, but not only… And I’m only citing two examples here, but once again, we’ll come back to this.

Pierre Leonard: [00:03:47] In terms of reducing costs, this is also a very interesting approach: reducing your energy consumption, which costs money, will result in savings, reducing the price you pay to dispose of your waste as well, and so on and so forth. And that can add up to substantial sums.

Pierre Leonard: [00:04:02] And the last point for today is access to capital: more and more investors are integrating ESG criteria into their investment decisions. The same goes for subsidies and grants to companies.

Pierre Leonard: [00:04:13] So all that’s fine and dandy – but only as long as you’re sincere about what you’re doing and walk the talk, so put your money where your mouth is because a poorly managed ESG approach can lead to accusations of ‘greenwashing’ and damage your reputation, and that’s really something we’re going to try to avoid.

Pierre Leonard: [00:04:29] Another question I’m often asked is: How much does it cost and what’s in it for me? What’s in it for me, we’ve already seen a bit of that. In terms of cost, it depends, it’s impossible to say, it’s a bit like asking how much a house costs, how much does a car cost? It depends on where you are, what you want, the size of the house you want, it can really depend on your industry and your business, but the bottom line is that it’s not a cost, it’s not an expense: it’s an investment. If I remember correctly, there is a McKinsey study that shows that companies that perform well in terms of ESG outperform their peers over the long term. And I think they even have a cost of equity that is on average 10% lower than their competitors, so that’s obviously interesting. But how do you put this approach into practice? Very quickly, I’m going to identify six points to which we’ll come back in detail in other episodes.

Pierre Leonard: [00:05:18] So, to integrate ESG into your company, you obviously need to start by assessing your current situation, which can be done by means of a carbon footprint, but that’s not all… Identify your priorities, set measurable objectives, integrate these ESG criteria into your overall strategy, train your teams, raise awareness, explain, show what you’re doing and finally communicate your progress.

Pierre Leonard: [00:05:40] Rome wasn’t built in a day and we can really say that ESG is a journey, not a destination. It’s not just a question of compliance either, it’s an opportunity to create sustainable value, sustainable prosperity for your company and for society as a whole, that’s all.

Pierre Leonard: [00:05:55] So, are you ready to take up the challenge? If you’d like to delve deeper into the subject, check out the sources on the “Six minutes pour comprendre” blog. In the next few episodes, we’ll start looking in more detail at each of the points we’ve explored today. Thank you for joining me for these “Six minutes to understand ESG” and I look forward to speaking to you soon!

Michel Godart: [00:06:13] “The Podcast Factory Org” would like to conclude this episode with a little side note: the GSS is indissociable from congruence, thank you. And I also invite you to look at the text of the podcast, there’s a link to leave a voice message for Pierre Léonard, share it, like it, help us, comment on it. See you soon for “Six minutes pour comprendre”.

Michel Godart: [00:06:34] This Podcast Project is an initiative created and proposed by the ASBL “The Podcast Factory Org”, with the sponsorship of “transforma bxl – Innovation Playground”, and you can find all the episodes on the “What’s Your Story point be” website.

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