The rationale for positioning businesses to thrive in an increasingly conscious economy

Techday NZ

07-05-2025

Going green is no longer a trend or optional extra; it has become a strategic necessity. As we navigate the rise of the conscious economy, driven by growing awareness of environmental, social and governance (ESG) issues, businesses must move beyond compliance and embrace transformation.
While many organisations are beginning to adopt more sustainable practices to meet ESG goals, they often overlook the deeper, long-term advantages. These include improved staff engagement, stronger supplier relationships and better business performance.
Thriving in this environment requires a digital strategy that connects purpose and performance across the organisation. The key lies in aligning three core areas: performance tracking, talent management and source-to-contract (S2C) processes.
ESG is more than a responsibility
Initially, businesses may approach ESG to meet regulatory demands or to respond to investor pressure. However, the impact of genuine values leads to change that goes much further. Customers, employees and the market increasingly reward organisations that actively embed ESG into their strategy.
Research shows that ESG-focused companies often outperform their competitors. They are more resilient, more attractive to values-driven talent and aligned with shifting consumer expectations. They also manage risk more effectively and adapt more quickly to change.
Performance tracking: Embedding purpose in daily work
A powerful way to deliver on ESG goals is by integrating them into everyday performance tracking. Rather than limiting ESG to annual reports or specialist functions, organisations should link ESG objectives to individual and team performance metrics.
Modern performance platforms make it possible to set clear, measurable goals that reflect both business and sustainability outcomes. For example, a procurement team could be evaluated on cost savings and reductions in supplier emissions, while sales teams might be incentivised to promote environmentally responsible products or services.
This approach builds accountability, drives cultural change, and boosts engagement. Employees are more motivated when they understand how their work contributes to broader social and environmental goals.
Talent management: Attracting and retaining a values-driven workforce
IBM consumer research has highlighted how businesses can protect people, the planet and the bottom line. The study found that 67 per cent of survey respondents were more willing to apply for jobs with environmentally sustainable companies. And among those who had changed jobs in the past year, roughly one in three had accepted a lower salary to work for a socially responsible or sustainable organisation.
Talent management plays a critical role in building and retaining this type of workforce. Organisations can use technology to connect people and purpose from recruitment and onboarding to development and progression. This includes: Recruitment: Highlighting ESG values and initiatives in job descriptions and employer branding.
Highlighting ESG values and initiatives in job descriptions and employer branding. Learning and development: Offering training on sustainability practices, ethical leadership and social impact.
Offering training on sustainability practices, ethical leadership and social impact. Employee engagement: Involving staff in volunteering, community initiatives or internal sustainability programs.
Employees who feel connected to their employer's mission are more likely to stay, contribute and innovate. Talent platforms that offer real-time insights into employee sentiment, engagement and values help leaders build a more responsive and inclusive workforce.
Source to contract: Driving sustainability through procurement
Procurement is often where ESG ambitions meet reality. Many of the most significant environmental and social impacts happen across the supply chain. That is why modern S2C solutions are vital for any ESG strategy.
Digital S2C tools provide visibility into supplier performance and help assess factors such as labour practices, environmental credentials and diversity. They also enable organisations to: Monitor supplier compliance with ESG standards
Assess and manage risk in the supply chain
Embed ESG criteria into tenders and contracts
Track and report on supplier sustainability metrics.
This not only reduces exposure to reputational risk but also supports long-term supplier partnerships based on shared values. A strong S2C platform makes sustainable sourcing measurable, scalable and repeatable.
Innovation and impact: ESG as a catalyst for change
Some leaders still view ESG as a cost or constraint, but those who embrace it see it as a source of innovation. Organisations adopting ESG as a transformation driver are rethinking their products, services and processes, from packaging and logistics to customer experience and pricing models.
Technology is enabling this change. Artificial intelligence (AI) and data analytics are helping to model carbon footprints and forecast social impact. Cloud-based systems are making ESG data more accessible and mobile apps are making it easier to engage employees and customers in sustainability efforts.
These tools already exist; the challenge is to use them in a way that connects across the business, from the front line to the boardroom.
Building the foundation for conscious growth
To succeed in today's increasingly conscious economy, businesses must create the internal infrastructure to support ESG outcomes. This ensures that sustainability is not a separate stream of work but an embedded capability. This means integrating digital tools for performance, talent and procurement into a single, aligned strategy.
Conclusion
The conscious economy is here to stay. Organisations that rise to meet their challenges with transparency, innovation, and purpose will not only fulfil their ESG obligations but also gain a competitive edge.
Businesses can create a measurable impact and drive long-term success by integrating performance tracking, talent management and S2C tools into their ESG strategies. They will be better equipped to attract top talent, reduce risk, and unlock new opportunities. In doing so, they will respond to the demands of the present and build organisations that are ready for the future.