Why ESG Isn’t That Complicated Or Expensive And How To Apply It In Your Business

When discussions on Environmental, Social, and Governance (ESG) are rolled out in boardrooms, teams are usually lost in the fog—nobody knows what step comes next. For something so popular, it’s surprisingly misunderstood. Many organisations, especially SMEs assume that adopting the framework is costly and primarily driven by compliance rather than value creation. Companies believe they are rigid metrics that they must adopt to remain relevant. In truth, they’ve turned making a sandwich into a full-blown organisational Rube Goldberg machine.

The essence of ESG is really just about minimising all forms of waste, whether it’s time, resources, or products. It’s a principle I’ve practised since childhood, thanks to my parents, who always encouraged us to approach tasks with purpose. I learnt early on to think carefully about what I was doing, how to do it efficiently, and how to conserve energy along the way. At its core, ESG is about managing an organisation in the most effective way.

Companies don’t need RM10 million to implement an ESG framework. ESG doesn’t require a huge budget; it all begins with mindset. It’s about being more conscious in how you think and act. In reality, we already practice this in small ways, such as choosing the most efficient route when travelling somewhere, which saves time and fuel. These habits reflect the core of ESG, which are already within us. We just need to recognise them and apply that thinking more intentionally in how we work and live. ESG metrics are also something that every company should track, regardless of its industry.

People need to challenge the status quo. Some companies are still running on clunky SOPs that feel like relics from another era. These have turned into processes that have outlived their purpose and quietly drain efficiency. It takes discipline to question and rethink how work gets done. People already want to do their best; a leader’s role is to create the space for that to happen. My company uses a simple thought process called ‘Assess, Build, Apply, Measure, Scale’. It starts by questioning what exists, because legacy processes often persist simply because no one has challenged them. Once refined, the impact is immediate. People work more effectively, inefficiencies fade, and organisations see real gains in time, quality, and productivity, all without needing extra capital.

The most overlooked opportunity lies in embedding sustainability at the design stage. As a former electrical & electronics engineer, I learnt that the greatest environmental and operational impact is set long before operations begin. By designing machines to be modular and using durable, maintainable, and reusable materials, we improved efficiency, extended asset life, and reduced waste. The same principle applies broadly: embedding sustainability at the design stage prevents waste of materials, energy, time, and human effort before it occurs.

When I work with boards, I push for one thing: to make ESG real by tying purpose directly to execution. The biggest wins often come from the ground up by tightening energy use, cutting waste, and getting more out of existing assets. These aren’t just ‘green’ moves—they’re smart business decisions that quickly show up in lower costs, better margins, and stronger productivity.

On the social side, it’s all about people. Companies that genuinely invest in developing talent and building inclusive environments don’t just feel better, they perform better too. The result is usually sharper ideas, higher engagement, and teams that actually want to stay and grow. Inclusion isn’t just a buzzword—it’s a powerful driver.

From a governance standpoint, impact is driven by consistency. It’s not about thick policy manuals but, rather, about how decisions get made every day. When data, ethics, and accountability are part of the rhythm, governance stops being a formality and starts becoming a strength. Boards that get this right don’t tick the box for a static requirement; they build trust and resilience that lasts.

I consulted for a company that was considering staff layoffs due to financial challenges. When I approach a company as an ESG consultant, the first step is always to take a holistic view by looking at finances, operations, and people. In one case, the client had both a manufacturing facility and an office. After reviewing their operations, I suggested a simple change: transition the office staff to remote work. The impact was immediate: facility costs dropped, commuting and food subsidies were eliminated, and overall operational efficiency improved. On top of that, the environmental footprint was reduced because energy usage and associated carbon emissions from the office were significantly lowered. By rethinking their processes, the company not only saved substantial costs but also maintained productivity without the need for retrenchment.

Dear CEOs: do not treat ESG as a programme. Treat it as a culture. Make it part of how leaders think, decide, and act, especially when no one’s watching. When ESG lives in the culture of an organisation, and not just a PowerPoint slide deck, it turns into something real: credibility people trust, performance that lasts, and long-term value.

Dr Vimaleswari K Ramasamy is the founder and CEO of Stravik, which helps organisations future-proof their growth by embedding sustainability into the core of business performance.

She has held high-impact executive roles, including being the first female Managing Director of IHS Markit Malaysia, where she grew operations to triple their size. At a top-tier global semiconductor manufacturer, she established Asia’s first test equipment R&D team, driving global product launches and significant enterprise value creation through breakthrough engineering solutions. First trained as an electrical & electronics engineer, she has a PhD in organisational business development and gender, credentials as a certified sustainable supply chain professional (CSSCP), and holds qualifications in strategy and action from the Harvard Business School. Ramasamy is also an adjunct professor for UNITAR, where she continues to build next-generation capability in ESG, analytics, and leadership.

Additional reporting by Alicia Corbett

Cover image: Illustration by Penn Chee; Photo by Getty Images