Environmental, Social and Governance (ESG) strategy has moved beyond reporting frameworks and corporate commitments. For many organisations, the priority is now commercial: translating ESG ambition into products and services that customers are willing to adopt and pay for.
Too often, ESG-led product development starts with internal targets instead of customer demand. The result is offerings that may read well in an annual report but struggle to gain traction in-market. Customers rarely purchase something simply because it carries an ESG label. They buy solutions that improve outcomes, reduce risk, save money or fit seamlessly into how they already operate.
The most successful ESG products are not virtue products. They are high-performing products with ESG benefits embedded within them.
A common mistake is assuming that stated customer preferences translate directly into purchasing decisions. Surveys frequently show that people care about sustainability and ethical sourcing. Yet purchasing decisions are usually shaped by price and perceived value. This gap means ESG features must create practical value. If customers have to compromise on cost or convenience, adoption slows.
Another issue is unclear communication. Technical carbon claims or opaque certifications can limit engagement rather than build it. Customers respond more strongly when benefits are immediate and easy to interpret.
Across sectors, the ESG propositions that perform best tend to fall into five categories.
Businesses should stop asking, “How do we add ESG to our products?” and start asking, “Which customer problems can we solve in a way that also advances ESG outcomes. That shift moves ESG from a communications layer to a driver of product design.
Leading organisations typically focus on three disciplines:
Before launching an ESG proposition, leadership teams should pressure-test the opportunity:
If the answers are unclear, the proposition likely requires further refinement.
The market for ESG products remains significant, but it is becoming more commercially disciplined. Customers are more selective and place greater weight on tangible value. That shift favours organisations willing to build substance over signalling. The next phase of ESG will be led by businesses that create products and services that are more efficient, more trusted and more useful, with ESG embedded as a source of strength rather than a separate message.
At Lestura, we help organisations identify where ESG drives real demand and translate this into commercially robust, credible propositions. From growth strategy to product design and go-to-market execution, we connect ESG ambition to measurable commercial outcomes.