Comparing Organic Apples to Non-GMO Oranges

Last month, a friend sent me a LinkedIn message with this comment:

“ESG reminds me of the organic food movement in the 1990's when there was no consistent definition of 'organic'.  ESG/Organic means different things to different people--and in many cases, 'feelings' to some are more important than 'facts'.

It’s a great analogy- in many ways ESG is still the wild west!   Organizations are duking it out over certifications, decisions are often made on gut rather than meaningful information, and there are some really bad ideas coming from PR teams. 

It’s also helpful analogy in considering whether your organization should be implementing ESG standards.

Consider the following comparisons:

• The organic food market is growing at 11.7%. ESG markets are growing at 17%

• Organic foods command a price premium of 15% more than non-organic foods. ESG. C-suite leaders say they would pay about a 10% median premium to acquire a company with a positive record for ESG issues over one with a negative record.

• 40% of Americans say most or all of the food they eat is organic. 66% of consumers are willing to pay more for a brand that pays attention to ESG issues.

It’s all part of the Great Reevaluation. 

You should care about ESG if you are in a position where you’re considering acquisition or new capital.  If you’re looking to better connect with your consumers and employees.  Or simply if you’re looking for a blue ocean market.