Want to Excel in ESG? Craft a “Green Ocean” Strategy.

Many managers feel overwhelmed by the competition. It's not new. This is a new type of competition that can involve competing across industries. It needs a new strategy called Green Ocean Strategy. Green Ocean strategy is ideal for companies with stakeholders that care about the environment. A manager who can find an ESG space where their competitor is absent and yet they can excel, execute upon it, and communicate that performance to their stakeholders will help ensure the ESG success of their company.

The field of which companies compete on their environmental, social, and governance performance is vast, making it difficult for any company to excel across all areas. A bank is competing with other banks for ESG-conscious consumers but it is also competing with other companies for ESG-conscious talent. Many investors allocate capital based on a firm's performance.