Social awareness, environmental care, and fair governance are increasingly influencing our everyday choices – including those made in business. This is precisely where ESG standards (Environmental, Social, Governance) come in, offering companies a framework for sustainable and long-term operations. A well-crafted ESG strategy sets the direction for growth and becomes part of an organization’s identity.
What is an ESG strategy?
An ESG strategy is a comprehensive business development plan that takes into account the company’s impact on the environment, society, and corporate governance. Integrating ESG into business decisions helps companies make informed choices, meet stakeholder expectations, and contribute to the Sustainable Development Goals (SDGs).
Before diving into specific actions, it’s worth asking a few essential questions:
- Why do we need an ESG strategy?
- Who will it benefit, and how?
- What key activities should we focus on?
- What measurable goals should we set, and within what timeframe?
This approach helps define priorities and highlights how ESG can strengthen the organization.
Why implement an ESG strategy?
Building trust and reputation
Well-designed ESG initiatives help companies better understand stakeholder needs and align business practices with public commitments. They build trust among customers, investors, financial institutions, regulators, and business partners. As a result, it's easier to meet rising formal requirements and market expectations – without excessive administrative burden.
Supporting day-to-day operations
ESG is also a powerful tool for improving operations and management. It helps teams focus on shared goals, monitor progress, and reinforce organizational cohesion. It can support the management board in decision-making and help foster a workplace culture built on inclusion, respect, and shared responsibility. Implementation requires time and collaboration – which is why an ESG team dedicated to developing and managing the strategy is so important.
Impact on company management and workplace culture
An ESG strategy supports the management team in making informed, long-term decisions that take into account not only financial goals but also the company’s impact on the environment, society, and corporate governance. As a result, management becomes more responsible and resilient to market changes. ESG also helps cultivate an organizational culture based on respect, shared responsibility, and collaboration—leading to greater employee engagement, improved team communication, and a stronger sense of purpose at work. Companies that consistently implement ESG principles are more likely to build lasting relationships with employees and business partners, and their decisions tend to gain greater trust from stakeholders.
Fundamental practices of responsible business
Creating an ESG strategy should begin with reviewing the Sustainable Development Goals (SDGs) defined by the United Nations. These global goals for 2015–2030 aim to balance the needs of the present generation with the wellbeing of future generations, respecting the environment and human rights. Companies can identify which of the 17 SDGs align best with their operations and use them as the foundation for a Sustainable Development Policy. This policy becomes a reference point for ESG-related decisions and actions.
A helpful tool in this process is the ISO 26000 standard, which defines social responsibility as an organization’s impact on society and the environment through its decisions and activities. The standard identifies seven key areas:
- Organizational governance
- Human rights
- Labour practices
- The environment
- Fair operating practices
- Consumer issues
- Community involvement and development
Another important element in building an ESG strategy is conducting a double materiality analysis – understanding how sustainability issues affect the company’s performance and how the company itself impacts society and the environment.
Internal analysis
An internal analysis includes a review of the value chain, business model, strategy, and operational goals. It also helps identify the company’s social and environmental impact and assess current practices. Gathering insights from both management and employees is crucial at this stage. Companies can also rely on existing frameworks and standards to assess their starting point and determine possible development paths.
External analysis
In parallel, the company should assess its external environment. This involves identifying stakeholders and understanding their expectations, as well as analyzing the actions of competitors and industry best practices – both from direct rivals and key clients. It’s also useful to refer to applicable standards, guidelines, and social, environmental, and economic trends. This broader view helps embed the ESG strategy in market realities and increases its effectiveness and resilience.
Furniture made with responsibility
At Balma, the ESG strategy began with a diagnosis of existing initiatives. These were structured according to ISO 26000 guidelines and complemented by satisfaction and needs surveys among employees and business partners. The resulting ESG strategy for 2024–2026 is built around six core pillars:
- Education
- Social engagement
- Wellbeing
- Sustainable governance
- Innovation and design
- Environmental protection
These aren’t just declarations – they translate into real actions. For example, Balma promotes furniture that supports wellbeing, ergonomics, and quality of work.
Balma’s ESG strategy aligns with six of the 17 Sustainable Development Goals:
- SDG 4 (4.1, 4.3, 4.4): Quality education – in our case, this refers to vocational training for young carpenters.
- SDG 8 (8.3, 8.5, 8.6, 8.8): Decent work and economic growth – Balma has developed a detailed wellbeing program to foster a safe and supportive workplace.
- SDG 9 (9.4): Industry, innovation, and infrastructure – through the ongoing development of technologies and production processes.
- SDG 12 (12.2, 12.5): Responsible consumption and production – focused on efficient resource management and waste reduction.
- SDG 13 (13.3): Climate action – by raising awareness and taking measurable steps to mitigate climate change.
- SDG 17 (17.16): Partnerships for the goals – by sharing ESG knowledge and best practices with others.
Many paths, one shared goal
Taking a strategic approach to ESG is more than just a response to global challenges. It’s a real opportunity to grow in a way that respects people, the planet, and the principles of good business. It’s also an investment in quality – the kind that’s visible in our products.
We believe that good design can be aesthetic, functional, and responsible all at once. That’s why we think about the lifecycle of our furniture, its environmental footprint, and the comfort of those who use it. This is where ESG values meet the everyday realities of the office – in spaces that support focus, collaboration, and wellbeing.
