A Simple Guide to ESG for Small & Medium Businesses in Australia

What is ESG?

ESG stands for Environmental, Social, and Governance—three key areas that businesses focus on to operate responsibly and sustainably.

• Environmental – Reducing your business’s impact on the planet (e.g., lowering energy use, cutting waste, using renewable energy).

• Social – How your business treats employees, customers, and the wider community (e.g., fair pay, workplace safety, diversity, ethical sourcing).

• Governance – The way your business is run (e.g., financial transparency, ethical decision-making, data security, compliance with laws).

For small and medium businesses (SMBs), ESG is not just about ticking boxes—it can help you save money, attract customers, and future-proof your business.

New Regulation for large businesses Feb 2025:

In February 2025, the Australian government introduced new regulations requiring large businesses to disclose their Environmental, Social, and Governance (ESG) practices and carbon emissions as part of a broader effort to improve transparency and sustainability. These regulations aim to hold major corporations accountable for their environmental impact and social responsibility. While initially targeted at large businesses, these changes are likely to set a precedent for smaller businesses in the future. Smaller businesses may soon be expected to adopt similar ESG reporting standards and sustainability practices, aligning their operations with national goals for reducing emissions and improving corporate responsibility. Energet can help small and medium businesses prepare for these future requirements.

Why ESG Matters for Your Business

1. Reduce Costs 💰 – Energy efficiency and waste reduction lead to lower operating expenses.

2. Win More Customers 🏆 – Consumers prefer businesses that care about sustainability and ethics.

3. Gain Business Partnerships 🤝 – Many large companies and government contracts require ESG-friendly suppliers.

4. Attract Investment & Grants 💡 – Banks, investors, and funding programs are prioritizing businesses with strong ESG commitments.

5. Stay Ahead of Changing Laws ✅ – Environmental and workplace regulations are evolving, and compliance will be critical.

How to Implement ESG in Your Business

1. Environmental: Reduce Your Impact 🌱

✔️ Use Renewable Energy – Switch to solar power or choose a green energy provider.
✔️ Cut Down Waste – Recycle, reduce packaging, and minimize single-use plastics.
✔️ Improve Energy Efficiency – Upgrade to LED lighting, energy-efficient appliances, and smart power management.
✔️ Choose Sustainable Suppliers – Work with companies that have ethical sourcing and sustainability policies.
✔️ Offset Carbon Footprint – Consider tree-planting programs or carbon-neutral initiatives.

2. Social: Build a Responsible & Ethical Workplace 👥

✔️ Fair Wages & Safe Conditions – Ensure employees receive fair pay and work in safe environments.
✔️ Promote Diversity & Inclusion – Create a workplace that values different backgrounds, skills, and perspectives.
✔️ Support Your Local Community – Partner with charities, sponsor events, or offer volunteer programs.
✔️ Improve Customer Trust – Be honest, transparent, and deliver high-quality products/services.
✔️ Source Ethically – Work with suppliers that follow fair labor and ethical trade practices.

3. Governance: Run Your Business with Integrity 📊

✔️ Clear Business Policies – Set guidelines for ethics, compliance, and decision-making.
✔️ Keep Accurate Records – Maintain proper financial, legal, and operational documentation.
✔️ Secure Customer & Employee Data – Invest in cybersecurity and protect sensitive information.
✔️ Prevent Corruption & Fraud – Establish transparency in financial transactions and business operations.
✔️ Regularly Review & Improve ESG Goals – Set targets and track progress on sustainability and ethics.

Small Steps, Big Impact

You don’t need to be a big corporation to benefit from ESG. Even small actions—like reducing energy waste, supporting local causes, or ensuring fair pay—can make a huge difference to your business and community.

Need Help Getting Started?

At Energet.com.au, we help small and medium businesses become more sustainable, competitive, and future-ready. Whether it’s switching to solar power, improving energy efficiency, or understanding ESG requirements, we’re here to guide you.

📞 Get in touch today for expert advice on making your business more sustainable!