Pivot Energy Blog

Planning and Budgeting for Your Company’s 2025 ESG Strategy

Written by Pivot Energy | Nov 27, 2024 3:00:00 PM

As more companies commit to ambitious Environmental, Social, and Governance (ESG) goals, the real challenge lies in execution. Setting high-level targets is the easy part—building a clear roadmap and equipping your organization with the necessary tools to achieve your ESG objectives is where you create true value.

There’s increasing recognition that ESG isn’t just an ethical imperative—it’s a strategic business advantage. Companies with strong ESG strategies attract and retain top talent, appeal to investors and customers, mitigate risks, and reduce exposure to legal liabilities. However, successfully planning and implementing ESG initiatives requires careful thought. A critical first step is budgeting.

Effective budgeting for your ESG strategy may encompass key areas such as a dedicated ESG manager or seeking specialized consulting when necessary, data management, and employee and leadership training. To help guide your planning for 2025, here are three essential considerations to ensure your ESG strategy is not just aspirational, but actionable and measurable.

1. Budgeting for and Onboarding ESG Expertise: Staff and Consultants

The "Why"

A robust ESG strategy demands more than frameworks and tools—it requires dedicated professionals and strategic expertise to drive meaningful results. Skilled ESG staff ensure cross-functional alignment, manage data, and embed sustainability into the company’s core operations. Likewise, ESG consultants bring specialized knowledge to navigate regulatory complexities, identify key focus areas, and build tailored strategies aligned with business objectives. Either one of these resources ensures that your company meets growing stakeholder expectations while driving tangible business value.

The Tools You Need

Budgeting for an ESG strategy should prioritize both people and expertise. While hiring a full ESG team may be unattainable for some companies, allocating resources for at least one dedicated ESG professional provides a strong foundation. 

For companies with tighter budgets, ESG consultants offer a cost-effective solution, filling resource gaps and delivering expert guidance without the long-term commitment of permanent staffing. A good ESG consultant can assess your company's current practices and craft a strategic, budget-conscious ESG plan. They can help set measurable goals, adopt tracking systems, and train employees to integrate ESG principles. Additionally, they can help provide regular check-ins to keep the strategy adaptable and aligned with evolving goals.

Implementation

Whether through dedicated in-house staff or external consultants, investing in ESG expertise is essential for driving sustainability and social responsibility. Partnering with a consultant or building an internal team accelerates your ESG journey and delivers measurable business value.

At Pivot, our ESG structure exemplifies the importance of leadership and collaboration. We’ve appointed a dedicated ESG employee who oversees strategy implementation, coordinates cross-departmental efforts and reports directly to investors. Additionally, our Chief Legal Officer, Jackie Murphy, serves as ESG Officer, tying sustainability initiatives to compliance and governance.

2. Data Management: Frameworks and Systems Beyond ESG Data Collection

The “Why”

Tracking key ESG metrics such as carbon emissions, water usage, labor practices, and board diversity is crucial, but collecting data is just the beginning, says Regine Parks, Pivot’s Senior Director for ESG, Safety, and Corporate Compliance. 

To effectively communicate ESG performance to stakeholders and drive real impact, companies need a robust framework to manage, analyze, and update data continuously. This requires more than just collecting data—it demands a structured, scalable system that ensures long-term reliability and transparency.

The Tools You Need

Building an effective data management system requires a significant investment in the right tools and human resources. Companies must adopt software that supports real-time data collection, seamless integration with existing business systems, and compliance with evolving ESG standards. These systems are not only essential for accurate reporting but also provide valuable insights that improve decision-making, mitigate risks, and build stakeholder trust. While the initial investment in technology and specialized staff can be substantial, the long-term benefits—such as streamlined operations, enhanced ESG performance, and stronger regulatory compliance—are invaluable.

Implementation

Pivot Energy, for instance, is developing an integrated ESG data platform that consolidates data from various business areas, such as energy usage, employee engagement, and supply chain performance. By using advanced analytics tools, we will be able to monitor trends and identify opportunities for improvement. With dedicated staff training, these systems will be integrated into daily operations, ensuring accurate and actionable ESG reporting.

3. Training Employees and Leadership: Building a Culture of ESG Excellence

The “Why”

While having dedicated ESG staff is a critical step toward implementing a successful ESG strategy, the reality is that ESG impacts every area of the business. For a strategy to truly succeed, it must be integrated across all levels—especially within leadership. For leadership, staying informed is crucial to driving the ESG agenda from the top down and ensuring long-term strategic alignment. It’s also important that employees stay well-informed of the latest ESG trends and best practices to align the company’s efforts with industry standards and drive meaningful change.

The Tools You Need

Allocating a budget for training staff and leadership is a valuable investment in fostering a company-wide ESG mindset. Regular, targeted training programs should be incorporated into the budget, covering key topics such as sustainability, net-zero strategies, safety, data security, energy efficiency, and diversity, equity, and inclusion (DEI). This ensures that ESG becomes a shared responsibility, embedded in the company culture and decision-making processes at all levels.

Implementation

At Pivot Energy, for example, leadership drives ESG engagement through initiatives like the “E Committee,” which organizes internal educational events focused on environmental sustainability. Employees are encouraged to participate in “Lunch and Learns,” and the company offers easy access to sustainable practices like recycling programs in partnership with Ridwell Recycling. These initiatives create an environment where employees are empowered to actively support and promote ESG objectives, ensuring that sustainability is woven into the company’s culture and operations. These initiatives also contribute to our Certified B Corporation status.

Conclusion: ESG is a Strategic Investment in Your Business’s Future

Investing in ESG is not just a matter of corporate responsibility—it’s a smart business decision that drives growth. Companies that prioritize ESG practices experience measurable benefits, including stronger employee retention, enhanced customer loyalty, greater investor appeal, a fortified reputation, and a more competitive position in the market. Embracing ESG not only aligns with ethical standards but also positions your business for long-term success and resilience.

As your company works to achieve its ESG goals, success depends on a clear, well-funded plan. Allocating budget to key areas like data management, team development, and leadership training ensures your ESG commitments translate into measurable impact.

At Pivot Energy, we’ve witnessed the transformative impact of a well-executed ESG strategy. With our expertise, we help businesses implement effective ESG frameworks that drive measurable success.

Contact Pivot Energy for expert guidance on implementing ESG best practices and achieving your long-term sustainability goals.