If you’re looking for a way to bring more positive impact to the world through your business or organization, you might’ve stumbled upon 3 letters: ESG.

ESG, which stands for Environmental, Social and Governance, helps to evaluate and guide the impact of a business, from actions that affect the earth or employees and customers to guidelines that reduce risk and unsustainable business practices.

Because technology is embedded into nearly every aspect of business, organizations should consider technology as a key element in their Environmental, Social, and Governance efforts. It’s vital to understand the framework and what advantages following an ESG strategy will bring to your organization and those in its orbit, like employees, customers, and the community.

Consider this: 76% of consumers say they will stop buying from companies that treat the environment, employees, or the community in which they operate poorly; 88% say they will be more loyal to a company that supports social or environmental issues.

Committing to ESG goals will help you avoid risks and ensure your company is doing its part to increase sustainability, positively impact communities and protect the environment.

ESG: What Is It?

ESG criteria are used by investors, board members and even the general public to assess the impact, both positive and negative, of an organization, revealing which companies are well-managed, environmentally responsible, socially conscious, and committed to good governance practices.

Environmental Factors

In the context of IT and technology, environmental factors refer to how e-waste is handled, the proper disposal of IT assets and prevention of harmful actions, like mining or heavy metals entering water supplies.

For organizations committed to a positive impact on the environment, their technology provides a few ways to shrink their carbon footprint, reduce greenhouse gasses and even divert assets to reuse, all affecting Scope 3 emissions.

Social Factors

Social factors relate to the impact of an organization on society, including issues like the impact of mining and the improper disposal of dangerous e-waste. Here, environmental and social intersect.

Metals such as silver, gold, lithium, and silicon are necessary for the production of electronics, and the environmental impact of mining for these raw materials is significant, from the emission of exhaust gasses by mining equipment to pollution of nearby rivers.

Improper e-waste disposal can leech harmful toxic materials into soil and aquifers, creating long-term health consequences for nearby citizens.

Acting in the best interest of the environment and local communities will bolster your reputation with potential clients and customers. You want to be known as an organization that is taking concrete steps to protect people.

Governance Factors

Every organization must consider governance factors surrounding sensitive information. Data security and minimizing risk should be top-of-mind, especially in the context of disposing of or recycling used IT assets. As an organization looks to upgrade or offload its IT environment, proper governance around data is essential, avoiding litigation, fines and reputational damage.

In addition, ongoing transparency and reporting matters for governance. Gaining insights into the status of IT assets, from their decommissioning status to their impact on Scope 3 emissions and greenhouse gasses, gives organizations the data they need to operate transparently and accurately assess their ESG goals.

Ultimately, improperly handling your used IT assets adds up to massive costs; according to EY, e-waste accounts for $57B in annual losses as key raw materials are thrown away.

Why Should You Care About ESG?

As consumers become more savvy and interested in organization’s values and social impact is more clearly linked to revenue, making ESG a focus in your organization is no longer a nice-to-have.

1. Investor Demand Investors are increasingly interested in backing companies that prioritize ESG factors. They recognize that companies that operate sustainably and responsibly are likely to be more resilient over the long term.

ESG reporting and performance can be key elements in attracting and retaining investment capital.

2. Reputational Risk

Organizations are subject to public scrutiny, especially through social media. Negative publicity around your organization’s impact on the environment, or social and governance issues, damage your reputation and erode customer trust.

3. Regulatory Pressures

Regulations and policies are being implemented around the world to address ESG concerns, for example, carbon emissions, data privacy, and transparency.

Teams that are proactively addressing these issues are better prepared to comply and mitigate the risk of legal and financial penalties, beating competitors who react to new regulations instead of acting proactively.

Goldman Sachs recently had to pay $4M to settle a U.S. regulator’s claims that the company’s assets management unit didn’t properly weigh environmental, social, and governance factors in some of the products they invested in.

4. Employee Engagement

Many employees place a high priority on environmental and social responsibility; one study found 93% of employees under 30 link their employer’s environmental impact with their overall loyalty to the company.

As a values-driven Gen Z takes a bigger foothold in the labor market, they want their values to be reflected in their workplace. Focusing on ESG allows your company to attract and retain top talent, connecting your work with a shared mission.

Knowing your reputation, financial stability, compliance, and employees are all affected by your adherence to ESG, you can be on the lookout for an ITAD partner that will help you reach your goals.

How GreenTek Solutions Helps You Achieve Your ESG Goals

When your organization has used IT assets, whether the result of migrating to the cloud, shutting down an office or upgrading your tech stack, your old equipment has to go somewhere—and it cannot be shut down and thrown out.

As a partner to organizations achieving their ESG goals, GreenTek Solutions is uniquely positioned to help your team identify challenges and solutions where technology/IT and ESG goals intersect.

Environment

GreenTek will recycle your organization’s irreparable IT assets in an environmentally responsible way, following R2v3 guidelines and EPA regulations and properly conduct the refurbishment of assets that can be reused; both of these options substantially reduce your organization’s Scope 3 emissions.

Just in 2022, GreenTek:

• ● Extended the life spans of more than 100,000 devices.
• ● Refurbished 278 tons of material for reuse.
• ● Diverted 24,000+ pounds of toxic metals from landfills.

In total, this is the same impact as taking 839 US homes off the electric grid for an entire year and, in Q1 2023 alone, GreenTek Solutions has already achieved nearly half of its 2022 impact.

Social

If you value your company’s reputation (and you’re committed to more than just talking the talk), proper management of this ITAD process is vital. GreenTek will make sure that privacy, data, the environment and your company’s reputation are protected, ensuring only positive outcomes for customers, communities and stakeholders.

Social responsibility is essential within GreenTek’s own organization; GreenTek was selected as one of 15 businesses to join the Apple Impact Accelerator, a program for minority-owned businesses creating environmental solutions focused on climate change and resource conservation.

Governance

GreenTek will help your company reduce risk and guarantee that data destruction and asset disposal exceed EPA standards.

Providing evidence that data and other sensitive information are kept secure and handled properly in the form of "chain of custody" reports, GreenTek also produces a "data destruction" report to document the proper wiping or destruction of data-containing devices.

Additionally, GreenTek exceeds ISO certifications, HIPAA rules, and R2v3 guidelines, ensuring GreenTek meets the high standards your organization set for approved vendors.

Critical for governance, GreenTek also provides data transparency. Through on-demand reports, organizations can view the amount of e-waste they recycle, reductions in CO2 and much more. You have full access to this data which allows you to put a spotlight on your positive impact in annual reports, PR campaigns, and more.

Partner With GTS

GreenTek Solutions is an experienced partner in helping organizations achieve their ESG goals. With our unique knowledge and insight gained by working with companies of all sizes, we can help you bring a positive impact to the environment, community and your organization.

To learn more or get a quote, get in touch with us here.