Why Strong ESG Performance Is a Competitive Advantage

ESG used to be “nice to have.”
Today, it is a commercial necessity—and a differentiator—especially in public procurement.

1. Contracting Authorities Expect Better Governance

Under the Procurement Act 2023, authorities must consider:

  • Supply chain resilience

  • Environmental responsibility

  • Workforce wellbeing

  • Transparency and accountability

Suppliers who excel in these areas score higher.

2. Funders and Prime Contractors Prefer Responsible Suppliers

Large suppliers on public frameworks increasingly expect SMEs to demonstrate:

  • Carbon reduction

  • Ethical practices

  • Diversity and inclusion

  • Strong governance

  • Consistent impact reporting

If you want to join their supply chain, ESG matters.

3. ESG Strengthens Your Bid Narrative

When your sustainability, social value, and governance align, your entire tender becomes more coherent.

4. Better ESG = Lower Risk

Public buyers and investors want stability.
ESG maturity provides confidence that your business is well-managed.

Bottom line:
Good ESG performance is no longer optional—it is becoming a commercial advantage.

omar.hadjel@outlook.com Omar Hadjel

Marketing Communications Consultant, Bid Support Specialist, Social Value Practitioner, Certified Sustainability Professional, Impact Reporting, Sustainability Communication, External Assurance for Sustainability Reporting

https://www.esg-reporting.co.uk
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A Simple Guide to Carbon Reduction Plans (PPN 06/21) for SMEs

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The Most Common Mistakes Suppliers Make in Social Value Responses