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Gaining Competitive Market Positions Using ESG Practices
Implementing ESG practices can help a business gain advantages through Cost Leadership and Differentiation. Supported by UVA Darden’s Strategy Course, I am looking at how a commercial building owner can gain a competitive advantage through the implementation of ESG Practices.
Cost Leadership:
To attain Cost Leadership, an organization needs to operate its building for less than a competitor, increasing margins.
The Environmental part of ESG primarily focuses on tracking and reducing carbon footprint. (Read my intro to ESG if interested) The easiest way to start doing this is to reduce your energy usage.¹
Some ways to reduce energy usage and energy costs are through technologies like SHARC Energy. Their tech captures heat from wastewater to heat incoming water, reducing energy costs. Another is CircuitMeter. Their technology allows a company to pinpoint energy waste through micro internal metering. This also reduces energy costs to achieve the same end. You could also install commercial-scale batteries to buy energy at non-peak hours, further reducing costs per watt.
Implementing the Social part of ESG helps retain building staff and can lower hiring costs, adding additional savings.²
