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Top Vendors

ESG Solutions

Market Summary – ESG Solutions

Market Overview

The field of ESG products and services is growing rapidly. This is due to corporations adopting ESG goals and objectives, causing businesses to measure progress across numerous potential metrics they may choose for their strategic planning efforts. As of this writing, Capsolve has identified more than a thousand solutions with ESG benefits applicable to our collective industry. Identifying solutions that may be appropriate and supportive of a company’s ESG strategy is not trivial. Capsolve continues to identify solutions capable of driving ESG plans forward and potentially creating results.

Many businesses are marketing themselves as green or sustainably oriented to attract consumers who prioritize these tactics. Hotels emphasize improved resource management in water, air, energy, and waste reduction. Restaurants are taking heed to better manage their meal ingredients in addition to the aforementioned resources. Golf Courses and Country Clubs share most of these priorities in addition to managing resources required for their land. The priorities of each business are influenced by multiple factors, such as the needs of their owners, partners, and affiliates, in addition to their evaluated business needs. Additional variations arise from location, the property’s surroundings, the competitive market, employees, service levels, marketing programs, and technology decisions.

Marketplace Context

While companies may evaluate specific ESG solutions as direct drivers of their chosen strategies, many other solutions are more indirect in their value-add to measuring ESG goals. As a result, procurement decisions are being adjusted based on the ability of products and services to support and add value to ESG objectives. An example of a direct ESG purchase is tracking technology that enables a company to capture and store information critical to measuring ESG goals. An indirect example is the purchase of bulk amenities to reduce waste associated with shampoo bottles, soap wrappers, and unused soap bars. Companies will continue to make tradeoffs to reach their ESG goals and maintain their pre-ESG goals worth keeping.

There are too many types of solutions to list in this paragraph, but our definition of ESG should provide context as to what is possible within this category. As you would expect, Capsolve found solutions to affect water conservation, air purification, energy types, and usage, to name a few within the sub-category of resource management. Choosing the array of goals within the ESG realm may be helped if input is sought from the standards and guides in the marketplace. These provide excellent templates for determining what a company may want to consider when defining its focus areas, goals, and key metrics for measuring success.

Many businesses are encouraged to take a more global view of their ESG decisions. Much of this is driven by resource planning and the influence commercialization has on our planet’s resources. While many long-term effects may be debated, there is a consensus that at least selected resources are limited and must be managed more carefully. Furthermore, it is generally accepted that businesses need to play a significant role in managing the resources they utilize as a priority while generating a profit for their shareholders.

The aforementioned resources include air, water, light, food, energy, people, and human-made resources. Other key considerations come into play as well. These include Human Rights, Health and wellness, and Social and Community Factors. Finally, some form of Governance is appropriate for companies to determine how they want to manage these resources and considerations.

Solution Paths

Most solution paths encompass one or more of the aforementioned categories. Tasks and solutions are selected from the above grid to organize and support an ESG program specific to a company’s needs.

• Strategy Formulation: leverage the value of industry frameworks, standards, and experts on ESG to formulate your overarching strategy
• Program Development: build upon your strategy work and identify the details of your ESG program as a whole
• Property Project: apply your program at the property level, either in a holistic sense or in manageable work efforts, to make progress toward the company’s ESG goals and objectives
• Tactical Project & Implementation: select a specific project scope and develop a complete project plan for a manageable work effort

Solutions within the marketplace may allow you to combine one or more paths and meet more of your ESG program needs. Appropriately formulating an RFP to share with potential vendors will help ensure you ask the best questions specific to your business while allowing you to learn about the depth of each potential vendor partner.

Pricing Information

Numerous pricing models exist across the solutions in this marketplace and are dependent upon multiple factors. A selection of the standard pricing structures and costs are:

• Consulting – fixed fee or time and materials
• Software – license purchase or software as a service subscription
• Service – fixed fee
• Goods – fixed fee
• Time – the cost of action or inaction
• Tradeoffs versus Alternative Solutions – many areas of ESG are about understanding and deciding what the acceptable balance may be when comparing two or more solutions

Sales & Marketing Considerations

There are many sales and marketing considerations, not the least of which is the marketing value of presenting your company as ESG-aware. Many consumers are seeking products and services that will benefit their personal, professional, employer’s, country’s, or the world’s general well-being. Emphasizing these initiatives will attract this type of consumer if corresponding marketing programs are in place to reach them.

Furthermore, many ESG projects create tangible benefits for the companies deploying them. These may be achieved through cost savings resulting from energy reduction or water conservation programs. Revenue increases may also drive these due to a company’s ability to attract additional consumer market segments, such as sustainable-oriented travelers. Depending upon the goals of any ESG program, the costs outside the company’s boundaries may be considered. Examples include the decrease in total costs resulting from a recycling program or the reduction in reliance on a fossil fuel power grid. Starting these programs may benefit a company’s sales and marketing program if positioned well within the local and global community.

Current Trends

1. Global Conscientiousness & Sustainability: Many countries worldwide are placing more emphasis on the global well-being of the planet and its inhabitants. This trend is affecting decisions by people and corporations.
2. Technology Advancement: The technology infrastructure and solution marketplace is growing, allowing companies to better manage their ESG programs.
3. Diversity: Selected countries are leading efforts in resetting expectations that opportunities at all levels within companies should be attainable and filled explicitly with people of all backgrounds.

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About this Report

This document reviews the marketing information and capabilities of this category’s solutions and the surrounding technology ecosystem. It contains original content written by Capsolve to provide a perspective of current trends affecting one or more of the hotel, restaurant, golf course, and country club industries. The analysis covers a statistically significant portion of the previously defined category marketplace.