Some Businesses Win Deals Before the Pitch Even Starts

This past week, I finally resumed recording and posting video content on LinkedIn.

It has been rewarding to explain ideas face-to-face, even if it's virtually. However, I still face a challenge:

I don’t have a solid system for recording and editing yet. My next step is to develop a process that makes it easier to show up consistently.

Why is this important? Because consistency builds trust, and trust helps close deals.

This brings me to today’s topic which helps businesses generate that trust too: ESG policies.

It's not a topic that you would see me commonly talk about, but I feel like it was worth sharing today.

The Deal That Was Lost Before It Began

I heard about this story from my friend. So I am not going to drop any names here and keep their identity vague.

But a small software agency was thrilled to land a meeting with a big-name client known for its strong focus on sustainability and social responsibility.

This client stood out in the realm of environmental, social, and governance (ESG) practices, emphasizing responsible material sourcing, carbon neutrality, and fair labor policies across their supply chain.

As the agency geared up for the pitch, they honed in on the nuts and bolts of their offering.

Their presentation was all about project timelines, cost estimates, and tech specs.

Every slide aimed to show off their software development skills, showcasing how efficient, competitively priced, and technically advanced they were.

But in their rush to impress with their expertise, they completely missed the mark on what mattered most to their potential client - commitment to sustainability and ethical practices.

They never mentioned how their solutions could help boost the client’s ESG goals or support their mission of creating positive social change.

In the end, the news was disappointing for the agency. They lost the deal, not because of price issues or lack of tech capabilities.

The main reason? They didn’t address the client’s ESG needs, which were important to the decision-making process.

This oversight showed a fundamental disconnect with the client’s values and priorities, proving that focusing solely on technical details can sometimes miss the bigger picture in partnership opportunities.

Why ESG Is No Longer Optional

Many businesses still view ESG (Environmental, Social, and Governance) policies as merely a buzzword.

However, the reality is that companies - especially larger enterprises - are now assessing vendors based on their ESG commitments.

Now you can ignore this aspect all you want, but you will be ignoring the opportunity to build trust, enhance credibility, and secure contracts.

So let me share two significant risks associated with the absence of ESG policies:

1) Missed Business Opportunities

Major clients, such as those in the Fortune 500, often will not consider proposals from vendors that lack ESG alignment.

Smaller businesses are beginning to follow this trend as well.

2) Reputational Damage  

A company's reputation is not solely based on its performance - it is also rooted in its values.

The absence of clear sustainability or ethical governance policies can damage your brand's image.

How to Make ESG Work for Your Business

If you want to protect your reputation and boost your success rates in competitive situations, it’s super important to knit Environmental, Social, and Governance (ESG) principles into your contracts and negotiations.

Here’s my laid-back approach to doing just that:

1) Start ESG Talks Early

Don’t wait around for clients to ask about your ESG plans. Bring it up right from the start.

Talk about your dedication to sustainability, ethical sourcing, or solid data privacy measures.

By bringing up these topics early on, you show clients that you care about these values, building trust and openness from day one.

For example, during the first meetings, share how your organization has cut down on waste or created a more inclusive workplace.

2) Customize ESG Clauses to Match Shared Values

It’s key to understand your client’s values and goals related to ESG.

If they really care about ethical labor practices, take time to create clauses that show how your operations not only meet but exceed fair labor standards.

If sustainability is a big deal for them, highlight your efforts to reduce your carbon footprint, like your investments in renewable energy or waste management.

Customizing these clauses to reflect what matters to your client not only proves you’re on the same page but can also set you apart during negotiations.

3) Make Commitments Real and Measurable  

Remember, making vague or unrealistic promises can backfire and hurt your reputation if they don’t pan out.

So you have to set commitments that are realistic and measurable.

Instead of saying you’ll "try to reduce carbon emissions," go for something clearer, like aiming for a "20% reduction in carbon emissions over the next five years."

If you’re discussing data governance, stick to established standards like the General Data Protection Regulation (GDPR) and sketch how you’ll implement measures to keep client data safe.

Providing clear metrics and timelines is important if you want to build accountability and reinforce your credibility.

ESG Is About More Than Compliance - It’s About Connection

Contracts represent more than just paperwork because they help you reflect your business values.

When your Environmental, Social, and Governance (ESG) policies align with a client's goals, you aren't just seen as a vendor - you become a partner with a purpose.

Yes. With purpose.

And in today's market, purpose-driven partnerships present the greatest opportunities.

So, what is your ESG strategy? If you don't have one, it may be time to create one.