The ESG Imperative Facing Growth Stage Companies

By Eric See, Jaslene Pang and Dr. Wilson Chew

Growth stage companies are recognising that there are business imperatives of
incorporating ESG  principles into their business strategies.

The increasing demand for compliance is an opportunity

which should be converted into a competitive advantage.

The speed at which a GSC achieves measurable ESG excellence is, in and of itself,

a differentiating factor with long-term benefits.

The ESG Imperative Facing Growth Stage Companies

Abstract

As climate change intensifies, businesses—especially growth-stage companies (“GSCs”)—face increasing pressure to integrate Environmental, Social, and Governance (“ESG”) principles into their operations. This article highlights two key drivers behind the ESG imperative: rising regulatory compliance demands and the competitive advantages of ESG integration.

Governments and stakeholders worldwide are enforcing stricter ESG compliance, with global commitments like COP28 influencing policy changes. Adapting to these evolving regulations is crucial for GSCs to remain compliant and resilient.

Beyond compliance, ESG adoption enhances corporate resilience and facilitates access to capital. Companies with strong ESG strategies gain consumer trust, operational efficiencies, and better risk management, positioning them for long-term success. Investors and lenders are increasingly prioritising ESG-aligned businesses, opening opportunities for green financing.

To develop an effective ESG strategy, GSCs must focus on three fundamental elements: (1) ESG reporting, ensuring transparency and alignment with global frameworks; (2) stakeholder engagement, fostering trust and long-term sustainability; and (3) integration into corporate strategy, embedding ESG into overall business strategy for sustainable value creation.

Rather than viewing ESG compliance as a financial burden, GSCs should recognise it as a strategic advantage. A well-executed ESG approach strengthens a company’s long-term competitiveness, resilience, and growth potential in a rapidly evolving business landscape.

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