The field on which companies compete on their environmental, social, and governance (ESG) performance is vast, making it all but impossible for any company to successfully excel across all areas. A bank, for example, is competing with other banks for ESG-conscious consumers, but it is also competing with other companies across industries for ESG-conscious talent. At the same time, many investors are allocating capital based on a firm’s ESG performance.
Want to Excel in ESG? Craft a “Green Ocean” Strategy.
To stand out, look for areas where your competitors aren’t investing.
June 13, 2022
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Summary.
For many managers ESG competition leaves them feeling overwhelmed and under-equipped. It’s not surprising. This is a new type of competition, one that often means competing across industries. This means that it requires a new strategy — one that the authors call Green Ocean Strategy. For those companies with stakeholders that care about ESG, Green Ocean strategy is the ideal way to compete in the new and increasingly important arena of ESG performance. The manager who can find an ESG space where their competitor is absent and yet they can excel, execute upon it, and then effectively communicate that performance to their stakeholders, will help ensure the ESG success of their company.