ESG Investments and How Craft Beers Pursue Sustainability

In an age and day when climate change and environmental protection are an important never-ending debate, people from all walks of life are increasingly becoming more eco-conscious. If you guessed right, this includes investors as well as small business owners - and craft beer brewers have not been left behind either!

Gradually growing in popularity, ESG investments have also taken the world by storm over the past few years, with more and more people gaining interest at the click of the clock.

Let’s take a look at what ESG investments are all about, alongside a few ways through which microbreweries pursue sustainability.

What are ESG Investments? 

First, ESG is an acronym for Environmental, Social, and Governance. While the acronym is somewhat self-explanatory, ESG Investment might not be, at least not to the average citizen or layman. Well, ESG Investments simply refer to the factors (non-financial) that investors consider when measuring a company’s investment or sustainability.

Environmental 

On the environmental side of things, these factors evaluate how a company takes measures to conserve the environment. They may include reducing carbon footprint, minimizing waste, conserving energy, recycling, reusing, and other practices that help save the planet.

In today’s world, businesses that observe eco-friendly practices are more likely to succeed. It’s easier for them to secure funds from lenders, grants from the government, and funding from the public. Moreover, a love for the environment can help improve brand reputation, reduce costs, and increase profitability.

Social and Governance 

On the other hand, the social part looks at factors that evaluate how a company treats people, from employees to customers, and the local community, both inside and outside of its walls. This is because people are a major determinant of whether a company will succeed or fail, which is important for investors to consider before risking their money.

Lastly, governance factors take into account how a company is run, which can be a great way again for investors to measure their risk. With proper governance in place, a company is likely to be more profitable, sustainable, and successful in the long term.

Crafting Sustainable Practices: How Craft Beer Breweries are reducing Their Environmental Impact 

When it comes to sustainability, craft beer brewers take the concept seriously. By committing to green-friendly processes and approaches, they're making significant impacts that help reduce both their environmental footprint and operating costs in the long run.

This is further enhanced by the use of brewery management software that provides an all-in-one brewery platform to help brewers streamline various processes. With the right tool, brewers can better manage their production, inventory, order processing, payments, customer relationships, and reporting on the same platform.

Nonetheless, some ways through which brewers pursue sustainability include:

  • Optimizing Water Usage: To protect the environment, craft beer breweries are reducing their water consumption by using more efficient brewing techniques and using wastewater treatment systems to reuse water.

  • Reducing Energy Use: Examples include using energy-efficient brewing systems, LED lighting, and solar energy. These can help brewers become more sustainable by reducing their energy consumption –and carbon footprint.

  • Minimizing Waste: This includes using eco-friendly packaging materials to reduce their production of waste while encouraging recycling.

  • Sustainable Sourcing: Many craft beer breweries are sourcing their ingredients from local, organic, and sustainable sources.

  • Supporting Environmental Causes: This includes supporting environmental causes and organizations to help protect the environment.

Of course, many microbreweries are also adopting practices that are in line with ESG principles to promote sustainability!

The Benefits of Investing in ESG: How to Make Your Money Work for Sustainable Craft Beer

Are you looking for an investment that does some good for the planet and rewards you with a financial return? If so, then investing in Environmental, Social, and Governance (ESG) is something you should consider.

ESG investments are designed to minimize environmental impacts while also driving social change through positive investments. Small businesses and investors can support sustainability initiatives while still earning profits by investing in craft beer breweries that prioritize sustainable practices.

By investing in this sector, not only will you get a solid financial return, but your money will be contributing positively to reducing climate change too! In addition to this profit-plus-purpose approach, craft beers offer investors another benefit: enjoying delicious beers knowing that their commitment has supported the transition towards sustainability throughout the entire brewing process -- from grain sourcing all the way to bottling it up into glass bottles!

This post was contributed by a guest author. Mainvest does not guarantee the accuracy of information in this post and does not provide legal, tax, or accounting advice.

posted January 19, 2023
Share this post