Six Reasons Why ESG Will Expand in 2024

Steve Ashkin, president of The Ashkin Group LLC and an advocate for sustainability within the cleaning industry, recently shared his anticipation for the expansion of environmental, social, and governance (ESG) programs by more jansan companies worldwide in 2024.

“Organizations in our industry realize the importance of ESG issues,” said Ashkin. “These are not just optional or peripheral matters, but essential aspects of doing business in today’s world.”

Ashkin stated the following six reasons why ESG will become more prominent next year:

1. ESG practices usually reduce costs. For example, 3M’s Pollution Prevention Pays program, launched in 1975, has saved the company around US$3 billion since its inception.
2. Starting in 2024, the European Union (EU) will impose new requirements related to ESG, including more comprehensive reporting. Jansan companies doing business in Europe will be required to follow these new standards and will likely adopt these same reporting standards in their North American markets.
3. More U.S. states are also moving forward on ESG reporting. On October 7, California Governor Gavin Newsom signed two new climate/ESG reporting bills into law. As in Europe, jansan companies doing business in California will be subject to these reporting requirements, which will be phased in by 2026.
4. ESG can help companies reduce risk. According to international consulting firm McKinsey & Co., ESG-focused companies are more resilient, recover faster after natural disasters, and are better equipped to mitigate hazards.
5. The popularity of ESG-oriented investing is skyrocketing. ESG investing involves choosing companies or funds based on their environmental, social, and corporate governance performance. A recent report by financial services company Morningstar Inc. demonstrated that ESG investing now exceeds $2.5 trillion, a 12% increase from 2021.
6. ISSA’s Sustainability Committee continues to grow. The initiative is designed to help all ISSA members in all sectors of professional cleaning implement sustainability, efficiency, social equity, and other related business strategies in their own organizations.

“Because ESG efforts are a journey,” Ashkin said, “we must expect some bumps along the way. But in the long term, ESG is on its way to playing a more influential role in almost all businesses in the future.”

To learn more about successfully taking on ESG and sustainability issues, check out this interview below of Katrina Saucier, the senior sustainability program manager at Green2Sustainable. To learn more about the ISSA Sustainability Committee, click here.