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5 reasons why ESG is a huge opportunity for companies and charities

Written by Peter Chiswick, Director of Corporate, Remarkable Partnerships.

"ESG is not only the right thing to do, it’s also a source of competitive advantage and value creation for our customers and shareholders”.  Jensen Huang, the CEO of Nvidia  

The economic landscape has changed, and so have the expectations and demands on companies. In this challenging climate, high performing companies have responded by embracing the opportunities possible from Environment, Social and Governance (ESG).

We believe ESG is an enormous opportunity not just for companies but also charities. 

ESG increases performance

In today’s competitive business environment, high performing companies understand the strong connection between ESG performance and financial performance. 

ESG can help companies create positive social and environmental impact, enhance brand, improve employee engagement, increase customer loyalty, and differentiate themselves from competitors. A great example is the technology company Nvidia whose foundation was set up as key ESG initiative to empower its employees to support various causes and initiatives, such as advancing cancer research and promoting STEM education. Nvidia’s profits have achieved record growth of 61% versus 2021. 

With companies now using ESG to achieve impact and performance, charities have a great opportunity to demonstrate how achieving their ESG goals can be directly linked to them.

ESG is measurable 

ESG is able to help companies benchmark their ESG performance against their peers and industry standards, and to identify areas for improvement. By using ESG framework, they are able to understand the impact of ESG activities on society and the environment. 

Unilever has successfully used ESG to benchmark and improve its sustainability performance, and to create value for its stakeholders. Unilever uses ESG to align its purpose, and business strategy with the United Nations Sustainable Development Goals and the Paris Agreement on climate change. They have been ranked the most sustainable company in the consumer goods sector by the Dow Jones Sustainability Index for ten consecutive years.       

This represents a great opportunity for charities to use their knowledge and expertise by providing credible metrics, benchmarks, and guidance to help measure their ESG performance. 

ESG reduces risk

ESG is not only a matter of values, but also a matter of risk management. 

Patagonia the clothing company is a great example of how ESG can reduce risk for a company by not only protecting its business from potential threats and challenges, but also enhance its reputation and brand loyalty among consumers and investors, who value its environmental and social impact. 

Partnering with a number of charities including Friends of Earth, they support organisations that work on issues such as climate, biodiversity, land, water and environmental justice, and that have a clear strategy and a strong base of support from all of its stakeholders.

This is great news for charities, because it reduces the risk of partnering with companies who can demonstrate they are committed to best practices of environmental, social, and governance standards.

ESG is in the boardroom

The ESG agenda is evolving in the boardroom, with a focus on recruiting passionate leaders who can use ESG to create a vision that is purposeful, inspiring and impactful. 

A great example of this is Microsoft’s’, CEO, Satya Nadella, who transformed the company’s culture by using ESG to align their vision, values, and set ambitious goals.  These include investing $1 billion in a climate innovation fund, becoming carbon negative by 2030, and launching a global skills initiative to help 25 million people worldwide through diversity and inclusion programs.  

Ranked first on the list of the 100 Best ESG Companies of 2021, Satya Nadella, CEO of Microsoft said, “ESG is not a cost, it’s an investment. It’s an investment in our future, our planet and our people.” .

At the forefront of addressing the most pressing ESG issues and challenges in the world, charities have a great opportunity to provide valuable knowledge and guidance to help leaders transform their companies. 

ESG unites   

ESG allows businesses and society to collaborate, to address global and local challenges that affect them both. By uniting various stakeholders, such as NGOs, and communities they unite to achieve transformational impact through a clear shared purpose. 

A great example of this is Starbucks who use ESG to guide its actions and decisions and to unite their stakeholders around their purpose, “To inspire and nurture the human spirit – one person, one cup, and one neighbourhood at a time”.  By covering three areas: planet, people, and social impact Starbucks promotes a culture of diversity and inclusion among its partners, and provides them with the support to create a more sustainable future for coffee.

Charities have a great opportunity to become an effective promotor for a company’s vision and goals, to inspire their shareholders to unite and demonstrate their commitment to making a positive impact. 

Conclusion

ESG is an enormous opportunity. It’s vital that both companies and charities seize this moment to partner through ESG goals, by sharing their expertise, resources, and values to change our world.

Conclusion

Let’s build partnerships that your cause — and the world — actually needs.

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More than money – what to value in a corporate partnership

This piece is brought to you by a guest writer – Katherine Woods.  Katherine is the Partnership Development Lead at Action for Children and is currently setting up the charity’s first standalone New Business Team. Here’s what she had to say about the non-financial value your partners can bring:

I find the corporate-partnership world really exciting. It’s evolved massively over the past few years and continues to do so. Today, the most successful partnerships are multi-faceted. They have touchpoints across all aspects of the business. And they don’t simply rely on fundraising as the sole piece of activity.

Andy at Remarkable Partnerships asked me to outline what I see as the main non-financial benefits that a partner can provide. So here’s what I look at in partnerships:

  1. Reach

There is a reason that big consumer brands spend millions of pounds on advertising annually. Visibility is key.

But there are very few charities that have those kind of budgets.

Which is why a partnership can hold such great potential for a charity brand—from expanding your general reach to spotlighting your cause for targeted groups. Our development team, drawing from a consultant with prior campaigns in the privacy-centric online gaming space like the best no KYC casinos, has piloted anonymous donation channels that draw in tech-savvy supporters wary of traditional tracking. Whatever your organisation’s mission, these expanded visibility opportunities will advance it further. The more people recognize your brand and mission, the greater their inclination to contribute.

For example, we are incredibly lucky at Action for Children because our friends at FirstGroup are very generous with their advertising space. We are given huge amounts of visibility across their network. They enable us to publicise our key campaigns in a way that we simply wouldn’t be able to do without them.

2. In Kind

Back to the lack of budget. There are a range of ways that a company can help a charity plug the lack-of-budget gap by donating resource, such as event space or legal expertise. These are opportunities for the company to support you with the cause itself.

Not only does it help the charity, but it can give your partner’s employees another way of being part of the partnership that doesn’t involve them asking friends and family for money.

But! It has to really make sense. It has to be authentic. There’s nothing worse than trying to create an ‘in kind’ opportunity that doesn’t really work for both sides.

3. Network

Over the course of a partnership you have the potential to ignite a passion for your cause in people.

As fundraisers, we do a good job of telling people how amazing our charities are. Imagine if you had someone else doing that for you. A peer-to-peer introduction carries a lot of weight and can open doors, helping you achieve bigger and better things.

I’ve been incredibly fortunate to work with some very dedicated, passionate and influential senior volunteers over the years. They are often totally wonderful individuals and can be a huge asset to your organisation. Maximise this potential!

Overall, there is a huge amount corporate partners can do for you – so stop just asking for cash.

We love this piece from Katherine. Our view is that when you choose to focus partnerships on overall value rather than purely cash donations, you get more fulfilling partnerships for both parties. Equally, partnerships that begin with a non-financial contribution are more likely to succeed because they begin by focussing on solving problems, which is what they should be about.

If you have any comments or suggested comments for future blogs, we’d love to hear from you below.

This piece is brought to you by a guest writer – Katherine Woods. Katherine is the Partnership Development Lead at Action for Children and is currently setting up the charity’s first standalone New Business Team. Here’s what she had to say about the non-financial value your partners can bring:

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min read
Highlights from Anchors Aweigh: launch event

On the 1st of July, we were delighted to be joined by 80 professionals from across the charity and business sectors for the launch of our new research – Anchors Away: breaking free of the barriers to ambitious charity-company partnerships. We heard from four incredible speakers and had some great comments in the Zoom chat, and we’re proud to share some of the highlights.

Barriers from the company side:

Jenni Berkley, Communications and CSR Manager of Belfast Harbour, started the event by talking about the barriers to ambition she’s experienced in the corporate secotr

“The problem is short-termism. Many people want to see something good happen in their timeframe or tenure. Something good even if it’s not the right thing.”

“I must get around 20 letters a week from charities I’ve never spoken to or maybe even heard of asking for money. It’s incredibly frustrating – they may get £100 if they’re incredibly lucky, but there needs to be an understanding of how our partnerships operate.”

“Charity-company partnerships are like finding your life partner… right down to wondering if you like the same films. You need to be compatible with each other from the superficial details all the way through to sharing the same ethos. It’s up to the charity to demonstrate that.”

Barriers from the charity side:

Then Ghalib Ullah, Head of Commercial Partnerships, spoke about the barriers he’s encountered and overcome through his career.

“The biggest barrier is structural. Our budget works on a yearly basis, so we are pulled back to achieving short term income, rather than achieving our more ambitious goals. We need to work as a whole organisation to overcome this.”

“Another barrier is organisational buy-in. We went through a process of identifying who internally was key to our success as a team. We understand that we’re pitching internally as much as we are externally.”

“Corporate partnerships is still in its infancy. How to achieve strategic partnerships is not as well understood as how to secure major grant funding. It is essential we invest in training as a team and as individuals.”

Background to the research:

We then moved to discussing how the research came about, before discussing some of the key recommendations.

“We defined ambition as the desire to create the most social value possible, then looked at what held people back from pursuing ambitious partnerships in favour of things like Charity of the Year or sponsorship models instead.” – Ian McQuillin, Rogare

One of the main things we found was the collaboration continuum, which we have adapted from Austin and Seitinedi. You can see the model that explains levels of ambitions below:

“Charity-company partnerships can make great changes in the world, so it’s a missed opportunity to be anything short of as ambitious as possible.” – Jonathan Andrews, Remarkable Partnerships

The importance of seeking value beyond money:

“The fundraisers label can hold us back. We need to be corporate value raisers, not corporate fundraisers.” – Jonathan Andrews, Remarkable Partnerships

“There are so many different ways partnerships deliver value – which are easy to overlook if money is the only or main measure of success.” – Crispin Manners, Onva Consulting

“I would recommend starting to report on added value, where it exists, as well as income. Don’t wait to be asked to report on it, just send out the results and examples you have as part of your normal reporting so that it starts to become embedded and better understood.” – Sophie Powell-White, Great Ormond Street Hospital

The importance of having a partnership north star:

“It is important that your projects excite not only your corporate team but your partners – they need to visualise the potential impact they could have on the world.” – Ghalib Ullah, Parkinson’s UK

“All the team have in their heads. That when we go into a conversation with a company what we are looking for is that ambition at the top of our partnership model. Which is an ambition that only us and that company can achieve… If you’ve got that ambition then all the levers for change will naturally fall out of it because it is so strategic to both sides…. In three years’ time what would the Sun newspaper headline say [the partnership] has achieved?” – charity interviewee in the research.

To get your copy of the full report, download it here

On the 1st of July, we were delighted to be joined by 80 professionals from across the charity and business sectors for the launch of our new research – Anchors Away: breaking free of the barriers to ambitious charity-company partnerships. We heard from four incredible speakers and had some great comments in the Zoom chat, and we’re proud to share some of the highlights.

Stay Informed. Stay Remarkable.