Why ESG Matters: Evolution from SDGs to a Global Imperative

In recent years, Environmental, Social, and Governance (ESG) has evolved from being a niche concept to a central element of corporate strategy. This shift is not merely about adopting a trend, but rather a transformation in how businesses align their operations with long-term value creation and sustainability. 

While ESG originated from the United Nations Sustainable Development Goals (SDGs), it has grown into a structured, results-driven approach that empowers companies to create real, lasting impact. 

Today, ESG is a critical driver of resilience and innovation, helping businesses navigate complexities in a world that demands more accountability, transparency, and action.

The Origins of ESG: Rooted in Sustainability

The SDGs, established by the UN in 2015, set the stage for ESG by offering a broad vision of a sustainable future, addressing global challenges such as poverty, inequality, and climate change. While these goals served as an essential foundation, the urgency to act has only increased. 

As the world confronts environmental degradation, social injustice, and governance failures, businesses are recognizing that taking action on ESG is not just a matter of compliance—it’s about aligning their purpose with tangible change.

As an advocate for sustainability, I’ve observed that the challenge lies in turning these global goals into actionable strategies that businesses can integrate into their day-to-day operations. That’s where ESG comes in—moving from theory to practice, from high-level goals to on-the-ground initiatives. 

Through this lens, businesses are not only contributing to global betterment but also ensuring their own survival and long-term success. This is a perspective STRAVIK helps clients embrace by guiding them in designing strategies that are both impactful and achievable, rooted in ESG principles.

The Rising Importance of ESG

Today, ESG is not just about doing good—it’s about future-proofing businesses and ensuring their long-term viability in an ever-changing world. As a leader, I have seen firsthand how companies embracing ESG are more prepared to meet the challenges of tomorrow. Here’s why ESG is a non-negotiable for today’s businesses:

1. Managing Risks and Building Resilience: The world’s environmental and social challenges pose significant risks to business operations. ESG practices provide companies with the tools to better anticipate and mitigate these risks, whether they stem from climate change, regulatory pressure, or shifting social dynamics.  Companies that embed ESG principles into their operations are more resilient to crises and better positioned to adapt to changing market conditions. This resilience is not just about weathering a storm, but about thriving in the face of disruption—a perspective STRAVIK has embedded in its approach to supporting businesses through practical, actionable ESG strategies.
   
   
2. Consumer and Investor Expectations: Today’s consumers and investors are far more discerning, choosing to support companies that align with their values. Studies show that 70% of consumers are willing to pay more for sustainable products, and nearly 60% consider a company’s ESG performance when making purchasing decisions. Meanwhile, investors are increasingly seeking out companies with strong ESG performance, recognizing that these businesses often outperform their peers in the long run. In my experience, businesses that actively communicate and live their ESG values build stronger, more loyal customer and investor bases. Supporting clients in positioning their ESG commitments to meet these expectations is a crucial aspect of STRAVIK’s work.
   
   
3. Regulatory Pressures: Governments are tightening regulations around ESG disclosures, making it increasingly important for businesses to be transparent about their practices. From the EU’s Non-Financial Reporting Directive (NFRD) to the SEC’s push for enhanced climate risk disclosures in the U.S., businesses must comply with these evolving regulations or risk financial and reputational damage. I’ve seen companies that proactively adopt ESG practices not only meet but exceed these requirements, which, in turn, strengthens their credibility in the marketplace. STRAVIK helps companies navigate these regulatory frameworks with ease, ensuring compliance while driving continuous improvement in their ESG strategies.
   
   
4. Attracting and Retaining Talent: The new generation of workers, particularly Millennials and Gen Z—places immense value on working for companies that align with their personal values. According to Gallup, 80% of employees consider a company’s environmental record when choosing an employer. In my two decades of leadership experience, I’ve found that when employees feel that their work contributes to a purpose larger than profit, they become more engaged and committed. STRAVIK helps organizations create purpose-driven cultures by aligning their ESG strategies with their talent management processes, enabling businesses to attract, retain, and motivate the best talent.