Recently, Itek, a commercial printer based in Concord, N.C., posted a blog called “What the BLEEP Is ESG and Why Should We Care?” Good question.

If you aren’t familiar with the acronym, it stands for Environmental, Social, and Governance (ESG) practices. ESG encompasses a set of criteria that measure a company’s performance and impact on critical environmental, social, and ethical issues as follows:

Environmental: The environmental aspect of ESG involves a company’s commitment to reducing its environmental footprint. This includes efforts to minimize carbon emissions, conserve energy, reduce waste generation, and adopt eco-friendly materials and processes. For printers, of course, these practices include things like sourcing sustainable paper, using energy-efficient equipment, implementing recycling programs, and promoting green printing solutions.

Social: The social component of ESG addresses a company’s relationships with its employees, customers, suppliers, and local communities. It encompasses things like fair labor practices, employee well-being, diversity and inclusion, customer satisfaction, and community engagement. As part of the social aspect of ESG, printers can prioritize things like employee safety, providing fair wages, and supporting social responsibility.

Governance: Governance relates to a company’s internal structures and processes, including leadership, board composition, transparency, and accountability. Companies with strong governance practices are more likely to make ethical decisions, prevent corruption, and prioritize long-term sustainability over short-term gains. For printers, good governance involves setting clear environmental and social goals, transparent reporting, and having a diverse and responsible board of directors.

Differences from “Mere” Sustainability

As these definitions make clear, ESG is different from the general concept of sustainability. ESG practices are a subset of sustainability initiatives, and while they share common goals, there are distinct differences between them. Let’s look at some of things that characterize ESG, specifically:

  1. Scope and Focus

ESG considers a broader range of factors. It takes into account “the basics” like a company’s carbon footprint and resource usage but also addresses broader issues such as labor practices, employee well-being, community engagement, board diversity, transparency, and ethical decision-making.

  1. Purpose and Stakeholder Engagement

When it comes to purpose and stakeholder engagement, ESG practices are designed to assess and manage risks and opportunities related to all of the various environmental, social, and governance issues.

  1. Corporate Reporting and Disclosure

ESG reporting involves transparently disclosing a company’s performance on specific environmental, social, and governance metrics. This reporting is typically standardized, allowing investors and stakeholders to compare companies within the same industry.

  1. Investor and Financial Focus

ESG practices have gained prominence in the financial world as investors increasingly consider non-financial factors when making investment decisions. ESG ratings and performance can influence a company’s investment flows and funding costs.

  1. Compliance vs. Strategic Approach

ESG practices often involve compliance with regulations and industry standards. Companies may adopt ESG practices to meet specific requirements or expectations from investors or regulatory bodies.

Benefits of Implementing ESG Practices

Sounds like a lot of work, right? Certainly, ESG practices do require an investment but, in addition to just being the right thing to do, they have business benefits, too. Among them:

  • Customers love environmentally friendly companies, and this gives printers one more way to appeal to them. Acronyms are quick, easy ways to promote a company’s environmental commitment.
  • ESG practices often drive resource efficiency, leading to cost savings over time. Implementing energy-efficient technologies, reducing waste, and optimizing supply chains can result in lower operational expenses. It can also be argued that adopting circular economy principles can extend the lifespan of printing equipment and materials.
  • Companies with strong ESG credentials may be attractive to potential employees, especially the younger generation, who prioritize working for organizations that align with their values.
  • As investors increasingly consider ESG factors in their decision-making, companies with robust ESG practices may find it easier to attract investment and secure financing.
  • ESG practices help printers anticipate and manage risks associated with environmental, social, and governance issues.
  • Embracing sustainability and social responsibility contributes to the long-term resilience of a printer's business.

As the ESG movement gains momentum (because, as we know, the industry needs more sets of practices and acronyms), it is worth paying attention to. Not only is adopting these “practices” a good thing to do, but as the buying world increasingly values sustainability, this gives printers yet another feather in their caps.