Cost of Inaction: How Much Will Inactivity in Sustainability Cost Companies?
Ignoring ESG entails significant financial and social costs of inaction, which directly threaten the operation of companies. These companies face deteriorating financing conditions, loss of competitiveness, and increasing legislative demands for decarbonization. A lax approach to sustainability brings not only financial but also social consequences, resulting in the loss of young talents. A unique analysis by the ESG CLUB clearly shows that inaction in the area of ESG can lead to significant financial losses, weak long-term competitiveness, and eventually existential problems.
ESG is ceasing to be a voluntary add-on and is becoming a condition for competitiveness. The costs of inaction are real money and lost opportunities that arise for companies when they push sustainability aside. The consequences show up in financing, in supply chains, in emissions fees, and in attracting talent. These are losses that arise because a company fails to take important steps in time – in environmental, social, and governance (ESG) areas. A simple analogy: anyone who renovated an apartment in 2019 paid less than if they did the same in 2024; the difference is the "cost of inaction." In business, rising energy prices, regulatory requirements, and market pressure add to this, making delays even more expensive. For many small and medium-sized enterprises, the topic is still new, but the risk is immediate. If companies underestimate ESG, within two to three years they may stop receiving invitations to tenders or public procurements. Large companies and institutions are increasingly demanding data and commitments from their suppliers.What are the costs of inaction in ESG
