By: Renee Morin, Chief Sustainability Officer, eBay

As disclosure regulations proliferate and investor expectations evolve, companies are realizing that ESG reporting is not just about compliance – it’s an opportunity to leverage sustainability as a competitive advantage. With increasing scrutiny on business transparency, companies are using ESG strategies to enhance their reputation and attract socially conscious investors. Effective ESG reporting today means more than meeting regulatory standards; it’s about driving growth, enhancing reputation and aligning with market demands.

Consumers Are Demanding More Than Compliance

Today’s consumers expect more than just regulatory compliance; they demand transparency, ethical practices and a genuine commitment to making a positive impact. Companies that prioritize sustainability and transparency are connecting with an increasing number of environmentally-conscious consumers. For example, eBay’s 2025 impact goals, which include reducing carbon emissions and minimizing environmental footprints, demonstrate how aligning business practices with consumer values can enhance engagement. By promoting a circular economy through recommerce, or the selling and buying of pre-loved goods, eBay is empowering consumers to make more sustainable choices, reinforcing its connection with them while also sending a powerful market signal. As more people engage in recommerce, it’s putting pressure on other companies to shift business practices to meet consumer demand, fostering a broader shift towards sustainable and circular business models.

Consumers are drawn to brands that not only promote eco-friendly practices but also actively contribute to a positive environmental impact. Initiatives like reducing waste, promoting the reuse of products and lowering the carbon footprint of operations are markers that conscious consumers look for to earn and maintain their loyalty. By integrating sustainability into their operations, companies can engage more effectively with their customers. When they align with the values of their consumers and show a sincere dedication to social and environmental issues, businesses can create trust and build a loyal customer base. This proactive approach benefits consumers and aligns the company’s sustainability practices with constantly rising investor expectations.

Businesses Finding Growth in ESG Integration

From a business perspective, integrating responsible business principles into core operations is crucial for long-term success. Effective ESG strategies can include actions from optimizing supply chain management to creating more efficient internal operations. Companies are closely examining their supply chains to ensure they adhere to environmental and social standards, which helps manage risks and build resilience.

Internally, businesses are focusing on reducing their environmental footprint, improving resource efficiency and fostering a diverse and inclusive workplace. These efforts enhance operational efficiency and drive innovation. Companies like eBay, for example, are increasingly embedding sustainability requirements and guidelines into contracts with external providers, demonstrating a commitment to sustainable practices beyond mere compliance. By approaching sustainability this way, businesses can partner with others that prioritize sustainability, thereby advancing the overall industry. For example, companies can collaborate with suppliers and other stakeholders to procure renewable energy at competitive rates, reducing their carbon footprint and supporting the transition to a clean energy. Embedding responsible principles into their business strategies, enables companies to navigate regulatory changes, respond to market demands and drive sustainable growth.

Investors Seeking Transparency and Accountability

For investors, a company’s ESG practices are becoming increasingly important. With the growing emphasis on ESG reporting, long-term focused investors are increasingly drawn toward businesses that are actively committed to sustainability and are transparent about their efforts. Robust reporting practices are attractive to investors who care about long-term growth and risk mitigation, as deep reporting shows that a company understands the landscape and has built strategies to reflect consumer values and align with business operations. Having an IR team that is knowledgeable about relevant environmental, social, and governance topics signals to investors that a company is well-positioned to manage risks effectively.

Investors are closely examining how companies are managing their environmental and social impacts, and incorporate these considerations into their overall financial strategies. A strong ESG approach differentiates a company, especially for investors interested in supporting businesses that prioritize social responsibility and sustainability. As seen from conversations with investors, there is no shortage of interest in these topics among the investment community. Clear and effective ESG reporting isn’t just about meeting standards; it builds trust, boosts investor confidence and can drive up shareholder value.

The Path Forward: ESG as a Blueprint for Success

Aligning responsible business strategies with consumer expectations, business operations and investor demands isn’t just beneficial, it’s essential. Companies that embrace this comprehensive approach are positioning themselves for sustainable growth and success in an increasingly competitive market. As the focus on ESG continues to grow, those with effective strategies will be the ones leading the way.