Sustainability Is the New Profit: How Companies Are Redefining Success Beyond Revenue

As the importance of ESG (Environmental, Social, and Governance) practices grows, businesses around the world are innovating to balance profitability with sustainability. To illustrate the practical application of ESG principles, here are real-world examples of companies that are leading the way. These businesses demonstrate how ESG can deliver value for stakeholders and the planet while driving long-term growth.

1. Environmental (E): Leading the Green Transition

Apple: Setting the Standard for Carbon Neutrality

What They’re Doing: Apple has committed to becoming carbon neutral across its entire supply chain and product lifecycle by 2030. This means every device sold will have zero climate impact, from manufacturing to recycling.

ESG in Action: Apple’s renewable energy projects span 43 countries, and it has already achieved 100% renewable energy for its corporate operations. The company also supports its suppliers in transitioning to clean energy.

Impact: Apple’s efforts have reduced its carbon footprint significantly, while its commitment to sustainable materials like recycled aluminum and rare earth elements enhances resource efficiency.

Ørsted: A Leader in Renewable Energy

What They’re Doing: Ørsted, a Danish energy company, has transformed from a fossil fuel-based utility to a global leader in renewable energy. It has divested its oil and gas assets and now generates nearly 90% of its energy from wind and solar power.

ESG in Action: The company is on track to achieve net-zero emissions by 2025, far ahead of most energy companies.

Impact: Ørsted’s transition has not only benefited the environment but also significantly increased its market valuation, proving that renewable energy investments can be highly profitable.

2. Social (S): Empowering Communities and Stakeholders

Starbucks: Creating Shared Value

What They’re Doing: Starbucks has made significant investments in ethical sourcing, employee well-being, and community development. It sources 99% of its coffee through ethical standards verified by organizations like Conservation International.

ESG in Action: Starbucks offers extensive employee benefits, including healthcare, education assistance, and mental health support. It also invests in community stores that provide job training for underserved populations.

Impact: By prioritizing employee welfare and ethical sourcing, Starbucks enhances its reputation and strengthens its global supply chain.

Unilever: Supporting Smallholder Farmers

What They’re Doing: Unilever’s "Sustainable Living Plan" includes empowering smallholder farmers in its supply chain. The company works with over 1.5 million farmers globally to improve agricultural practices, provide training, and ensure fair wages.

ESG in Action: Unilever has committed to sourcing 100% of its agricultural raw materials sustainably, helping farmers transition to eco-friendly practices while improving their livelihoods.

Impact: This approach not only secures a sustainable supply chain but also contributes to poverty reduction and food security in developing countries.

3. Governance (G): Building Transparency and Accountability

Microsoft: Driving Transparency in Climate Goals

What They’re Doing: Microsoft has committed to becoming carbon negative by 2030 and eliminating all historical emissions by 2050. The company also links executive compensation to the achievement of sustainability goals.

ESG in Action: Microsoft publishes detailed annual sustainability reports, providing transparency on its progress toward carbon neutrality and social equity initiatives.

Impact: Microsoft’s governance structure ensures accountability, enhancing trust among stakeholders and attracting ESG-focused investors.

Danone: A Certified B Corporation

What They’re Doing: Danone, a global food company, became the first listed company to adopt the B Corp certification. This certification recognizes businesses that meet high standards of social and environmental performance, accountability, and transparency.

ESG in Action: Danone has incorporated ESG metrics into its corporate bylaws, ensuring that sustainability remains central to its operations.

Impact: By aligning governance with sustainability principles, Danone has strengthened its brand reputation and attracted purpose-driven investors.

4. Integrated ESG Leadership: Companies Excelling Across All Pillars

Patagonia: The Gold Standard for ESG

What They’re Doing: Patagonia integrates ESG into every aspect of its business. The company donates 1% of its sales to environmental causes, uses recycled materials in its products, and encourages customers to repair and recycle their gear.

ESG in Action: In year 2022, Patagonia’s founder announced that the company would transfer ownership to a trust and non-profit organization, ensuring that all profits are reinvested into combating climate change and protecting natural ecosystems.

Impact: Patagonia’s commitment to sustainability has earned it a fiercely loyal customer base and global recognition as an ESG pioneer.

Tesla: Revolutionizing Transportation with ESG

What They’re Doing: Tesla’s mission to accelerate the world’s transition to sustainable energy is reflected in its electric vehicles (EVs), solar energy products, and battery technology.

ESG in Action: Tesla has significantly reduced the carbon footprint of transportation by producing EVs that outperform traditional cars in emissions reduction. It also invests in battery recycling to minimize waste.

Impact: Tesla’s innovation has not only disrupted the automotive industry but also set a benchmark for sustainable business practices, driving value for investors and consumers alike.

5. Regional Examples: ESG Champions in Asia-Pacific

TSMC (Taiwan Semiconductor Manufacturing Company)

What They’re Doing: The world’s largest semiconductor manufacturer has committed to achieving net-zero emissions by 2050. It is investing heavily in renewable energy, water recycling, and energy-efficient production processes.

ESG in Action: TSMC sources 25% of its energy from renewables and plans to increase this share to 40% by year 2030. The company also leads the industry in reducing water usage through advanced recycling technologies.

Impact: By integrating ESG into its operations, TSMC is enhancing supply chain resilience while meeting the rising demand for sustainable tech products.

Fortescue Metals Group (Australia)

What They’re Doing: Fortescue is transitioning from being a major iron ore producer to a leader in green hydrogen production. The company has pledged to achieve carbon neutrality by year 2030.

ESG in Action: Fortescue has invested in renewable energy projects and plans to develop green hydrogen as a zero-emissions energy source for global markets.

Impact: Fortescue is setting a new standard for the resources sector, proving that mining companies can lead the way in the clean energy transition.

6. Challenges in ESG Implementation: Realities on the Ground

While these examples highlight success stories, it’s important to acknowledge the challenges companies face when implementing ESG strategies:

Greenwashing Risks: Some companies exaggerate their ESG efforts for marketing purposes, damaging trust. For example, Volkswagen’s "Dieselgate" scandal highlighted the risks of misleading sustainability claims.

Regulatory Complexity: Inconsistent ESG regulations across countries make it difficult for multinational corporations to comply with global standards.

Balancing Costs with Impact: Smaller companies may struggle with the upfront costs of transitioning to sustainable practices, even though the long-term benefits are clear.

Conclusion: ESG as a Blueprint for Sustainable Success

These examples demonstrate that ESG is not just a framework—it’s a pathway for companies to innovate, reduce risks, and create long-term value for all stakeholders. From Apple’s carbon-neutral supply chain to Patagonia’s planet-first ethos, businesses that embrace ESG are redefining the rules of success in the 21st century.

As consumers, investors, and governments continue to prioritize sustainability, ESG will remain a critical driver of corporate strategy. The companies that lead this transition are not just shaping better businesses—they’re building a better future for the planet and society.