What even is ESG? (And why it’s showing up everywhere).
Part 1
“Why you need to know (more) about ESG” blog series.
ESG. It’s one of those acronyms that sounds like something only big corporates with legal teams and a spare $200K use. But it’s showing up in all the places that matter: funding applications, board meetings, tender documents, investor checklists — even community grant forms.
And here’s the thing: if you’re a purpose-led business or not-for-profit in Aotearoa New Zealand, you’re probably already doing ESG-related work. You just might not be calling it that. Yet.
I remember when I first started working adjacent to my first sustainability team about 7 years ago… acronyms were flowing, “scientician” terms were a-plenty, and I felt significantly daft fairly often.
So let’s demystify some of that language together. This blog series is designed as an introduction to ESG, to unpack key terms, share useful tools, and help you build your confidence and capability in this fast-growing, often confusing, but increasingly essential part of business and social practice.
Because with ESG, sharing genuinely is caring (cute 🥰 )
ESG = Environmental, Social, and Governance.
The term ESG was first coined in a 2004 UN-backed report called Who Cares Wins, which made the case that businesses and investors who cared about people, planet, and ethics would outperform those who didn’t. What started as a financial lens is now used by organisations of all kinds to show how their values translate into real-world impact.
Think of ESG as a way of organising how your organisation shows up in the world — and how you prove it. It’s doesn’t have to be a new department or a fancy spreadsheet.
ESG is a lens.
It is a way to ask:
Are we living up to our values?
What impact are we having — on people, on place, on the way we lead?
And can we back that up with something more than a well-worded annual report?
For some organisations, ESG might start with measuring emissions or mapping board diversity. For others, it’s about showing how community voice influences decisions, or how kaimahi wellbeing is tracked and improved over time. The point isn’t perfection — it’s progress, visibility, and accountability.
So, what is the E, S, and G?
Environmental: What’s your impact on the whenua (land), climate, and ecosystems? (e.g. carbon emissions, energy use, waste, biodiversity).
Social: How do you treat people and how are your decisions impacting them — your kaimahi (staff), hapori (community), supply chain, and stakeholders? (e.g. equity, wellbeing, inclusion, human rights)
Governance: How are decisions made and by whom? Is your leadership accountable, diverse, values-aligned? (e.g. board oversight, transparency, tikanga-informed processes etc.)
In the Aotearoa New Zealand context, it’s also important to recognise the role of Te Tiriti o Waitangi as a foundational part of how we think about impact, equity, and governance. Honouring Te Tiriti means considering Māori rights, relationships, and leadership across each pillar of ESG — not as an add-on, but as part of how good practice is defined here.
Why it matters (yes, even in your world).
It’s limiting (and incorrect) to consider ESG as something for listed companies or global brands — the kind of organisations with a legal team, a sustainability officer, and a social impact budget. Here’s why it’s showing up more and more for all kinds of organisations here in Aotearoa New Zealand:
Funders are asking for it – especially government, philanthropic, and impact investors.
Procurement teams expect it – and may prioritise suppliers who can evidence their impact and accountability.
Communities are watching – and trust is built through transparency, not just good intentions.
Reputation is at stake – and greenwashing, overclaiming or silence can damage credibility fast.
Even if you’re not legally required to “do ESG reporting” — the expectation to show your mahi, your values, and your follow-through is only growing. A focus on embedding ESG-thinking and action within the bones of an organisation can also be a key differentiator. It can build loyalty, preference, and resilience.
And this doesn’t just apply to for-profits. It’s just as relevant for not-for-profits, community services, and social enterprises.
If you’re working to make things better for people or planet, ESG is part of the conversation — whether you call it that or not.
Finding out more.
If you’re new here, or want a refresher, here are a couple of resources that can help with that ol’ demystification:
1️⃣ Sustainable Business Network’s “Glossary of sustainability”. Save her as a favourite on your web browser.
2️⃣ From Study Academy, What is ESG? Introduction to Environmental, Social, and Governance. It’s not a laugh-a-minute, but it’s a great wee explainer for businesses thinking about what ESG is and how it may relate to them.
So, that’s ESG — stripped back and hopefully a little more human.
You don’t need to master every framework or tick every box overnight. But you do need to understand what ESG means in your world — because the expectation to show your impact, values, and decision-making is growing.
And the good news?
You’re probably already doing some of it. This series is here to help you see it, shape it, and share it with confidence.
Part 2 coming up next:
“How is Aotearoa doing on ESG reporting?”
(Spoiler: it’s a bit patchy, but there are bright spots worth knowing about.)
Want help making ESG meaningful within your organisation?
At Impact Ink, we help organisations:
Map what matters (social and governance expertise with environmental partners at the ready)
Build ESG-aligned strategy and stories
Translate values into action — and action into evidence.
We keep it grounded, plain language, and tailored to where you're at.
👋 Let’s kōrero.
#ESG #SustainabilityReporting #SocialImpact #GovernanceMatters #PurposeLed #AotearoaBusiness #NewZealandBusiness #ImpactInk