Why ESG Matters More Than Ever – Especially in New Zealand

So is ESG “Hype” or “Gripe”? 

ESG – Environmental, Social, and Governance – is no longer the preserve of big corporates or green-minded charities. It has become a strategic imperative for any business that wants to remain credible, competitive, and connected in today’s world.

In New Zealand, the case for ESG is not ideological – it’s commercial. We are a small, reputation-driven economy. What we export, how we employ, who we buy from, and how we lead all feed into our long-term viability. ESG gives us a framework to align business with integrity, performance, and long-term value.

But what is ESG really about – and why does it matter now more than ever?

1.E = Environmental: Resource Use and Market Expectations

In a practical business sense, “environmental” concerns come down to how we manage resources – energy, water, waste, materials – and how we meet growing customer and supplier expectations.

This isn’t about “saving the planet” rhetoric. It’s about efficiency, compliance, and reputation. More customers are demanding proof that the goods and services they buy are produced responsibly – especially in sectors like food, tourism, manufacturing, and construction.

For example, many New Zealand exporters are now being asked to prove environmental standards in offshore procurement processes. Large retailers and public agencies increasingly favour suppliers who can demonstrate stewardship – not perfection, but progress.

Reducing waste, managing inputs, adopting circular approaches – these aren’t just good ethics; they’re smart business. Every dollar saved in energy or materials is a dollar added to the bottom line.

2. S = Social: Fairness, Safety, and Cultural Relevance

The social pillar of ESG focuses on how businesses interact with people – employees, customers, suppliers, communities. In Aotearoa, this has deep implications, particularly around fairness, safety, and bicultural practice.

Are staff paid fairly? Are workplaces safe? Are training and development offered equitably? Are suppliers ethical and non-exploitative? Do we reflect the diversity of our communities, including Māori and Pasifika?

These aren’t abstract concerns. They shape trust, retention, customer loyalty and procurement preference.

In the public sector, for example, the New Zealand Government Procurement Rules now require agencies to consider broader outcomes, including social equity, worker treatment, and regional support. This means if your business wants to win government contracts, your social credentials matter.

It’s also smart risk management. Poor worker treatment or subcontractor misconduct can expose a business to reputational damage, legal action, and disrupted supply chains.

3.G = Governance: Accountability, Ethics, and Resilience

Good governance has always been essential – but ESG reframes it through a lens of ethical leadership, transparency, and long-term thinking.

It’s no longer just about meeting legal obligations. It’s about how decisions are made, who makes them, how risks are identified, and how organisations behave under pressure.

In New Zealand, we’ve seen growing scrutiny of director responsibilities, board diversity, and ethical lapses. Investors, regulators, and the public are less forgiving of “bad apples” – and rightly so.

Strong governance supports resilience: it ensures your business is not overly reliant on one person, that key risks are monitored, and that culture aligns with values. In today’s environment, good governance is a commercial advantage – not a compliance chore.

And with initiatives like the Institute of Directors’ ESG guidance and rising investor expectations, Kiwi boards are increasingly expected to have a handle on ESG performance.

4. Procurement: ESG as a Competitive Edge

Perhaps the most practical reason to embrace ESG in 2025 is this: it affects your ability to win work.

Procurement – both public and private – is being reshaped by ESG. Whether it’s local councils, multinational retailers, banks, or infrastructure alliances, the trend is clear: buyers want to work with suppliers who share their values.

This includes:

• Environmental performance (e.g. waste minimisation, sustainable packaging)

• Social impact (e.g. Māori procurement, local employment, training outcomes)

• Ethical governance (e.g. anti-bribery, fair pay, transparent ownership)

If you’re not ESG-ready, you’re at risk of being excluded – not because you’re bad, but because you’re not visible or verifiable.

On the flip side, ESG offers a real opportunity for smaller businesses to stand out. Local firms with strong community ties, good governance, and cultural fluency can punch above their weight when they show up well in tender processes.

The government’s progressive procurement policies – aiming to increase spend with Māori businesses, social enterprises and those who deliver community value – are also fuelling this shift.

5. Māori Values Deepen ESG Practice

One of Aotearoa’s greatest advantages is that we don’t have to import ethical frameworks. Te Ao Māori already offers a rich, intergenerational model of stewardship.

Values like kaitiakitanga (guardianship), manaakitanga (care), and whanaungatanga (relationships) are naturally aligned with ESG. These aren’t add-ons – they’re foundations.

Māori businesses often lead the way in integrating environmental respect, social wellbeing, and collective governance. As more mainstream enterprises seek to improve their ESG practices, engaging meaningfully with Māori perspectives is not only respectful – it makes business sense.

6.From Theory to Practice: Making ESG Work for You

ESG shouldn’t be a burden or a buzzword. It should be a practical framework for doing better business.

Here’s how to get started:

• Know your priorities: Identify the ESG issues most relevant to your size, sector, and stakeholders.

• Measure and improve: Start tracking what you can – energy use, pay equity, diversity, procurement impacts – and look for areas to improve.

• Tell your story: Whether it’s in tenders, investor updates, or staff meetings – show your progress, own your gaps, and commit to transparency. There is nothing worse than tokenism. 

• Involve your people: Culture is built from the inside out. Staff want to be proud of where they work.

• Use ESG in procurement: Ask your suppliers about their practices. It lifts standards across the board and builds alignment in your value chain.

7. ESG is About Future-Proofing

Ultimately, ESG is not about being “woke” – it’s about being awake.

Awake to changing expectations. Awake to new risks and opportunities. Awake to the fact that values now shape value.

In New Zealand’s tight-knit, high-trust economy, reputation travels fast. Those who embed ESG – not just as a report, but as part of their DNA – will attract better talent, win better contracts, and build more resilient businesses.

The ones who treat ESG as a passing trend? They’ll be left behind.

Conclusion: ESG is Practical, Powerful and Profitable – if Done Right

Environmental stewardship, social integrity, and good governance are not fringe concerns. They are the foundations of resilient, credible, and future-ready enterprises.

In New Zealand where our economy relies on quality, trust and relationships, ESG is more than a framework. It’s a strategic compass. It sharpens your operations, strengthens your offer, and tells customers, partners and investors: “We’re the kind of business you can trust.”

That’s not ideology. That’s impact – and it’s good business.

Need help with your social accountability framework in an attempt to be a better corporate citizen then don’t hesitate to reach out.