For Small Businesses Too, ESG May Soon be KEY

Even if you haven't begun using the phrase, "ESG," referring to environmental, social and governance issues, if you've been taking positive steps to address issues related to diversity and inclusion, sustainability and/or ethical sourcing, for example, you are squarely entering ESG territory. But there may still be more to do.

ESG isn't only relevant for large companies with investors and shareholders. Increasingly, other stakeholders such as customers and even employees are expecting companies to implement and disclose ESG initiatives. According to a recent press release on ESG issued by law firm Thompson Hine, regulatory agencies are also increasing their focus, with proposed ESG rulemaking from the SEC expected this Fall.

So, as a small company, with limited resources, where do you start? One helpful strategy might be to explore what other companies are doing, to find a benchmark against which to plan or measure your own efforts.

A newly-released ESG report from Thompson Hine provides just such a helpful snapshot. The report is based upon a survey of 134 companies from various industries and of various sizes -- including those with revenues under $50k.

If you haven't yet formally instituted your own ESG efforts, this data suggests that you are not entirely alone; while many companies have implemented formal programs, others appear only to be getting started or making plans to do so. This report may provide you with the basic information and inspiration to formally begin your own ESG efforts as well.

This post is provided for informational purposes only and is not intended to constitute legal advice. Please consult an attorney.