#18: 6 ESG Mistakes That Could Cost Your Business Millions

Across Africa and globally, investors, lenders, and regulators now see ESG performance as a measure of business resilience and credibility. Yet, many organisations are still treating ESG as a voluntary exercise, and this is costing them millions in lost funding, higher operational risks, and reputational damage.

Here are six ESG mistakes you can not afford to make and how your organisation can avoid them.

1. Treating ESG as a PR Project

Many businesses focus on glossy reports and social media campaigns while neglecting the operational changes ESG demands. Regulators, investors, and stakeholders will see through “greenwashing.”

Avoid it: Embed ESG into core strategy and operations, not just your marketing.

2. Ignoring Data Quality and Verification

Without credible, verifiable ESG data, your reports are just words. Poor data quality can lead to compliance breaches, loss of investor trust, and in some cases, legal penalties.

Avoid it: Establish clear data collection processes and invest in tools for monitoring and verification.

3. Overlooking Regulatory Changes

African markets are rapidly adopting ESG-related disclosure rules, often aligned with global frameworks like GRI and ISSB. Businesses that ignore these shifts risk sudden non-compliance.

Avoid it: Monitor local and global ESG policy updates, and regularly align your reporting frameworks.

4. Focusing Only on the “E” in ESG

Climate impact is important, but so are labour rights, diversity, anti-corruption, and governance structures. Neglecting the “S” and “G” can be just as costly.

Avoid it: Take a balanced, integrated approach that covers all ESG pillars.

5. Not Linking ESG to Financial Performance

ESG is often viewed as a cost centre rather than a value driver. This mindset limits board-level buy-in and undercuts long-term sustainability.

Avoid it: Demonstrate the financial benefits of ESG—reduced risks, access to capital, operational efficiency, and brand loyalty.

6. Working Without Expert Guidance

The ESG landscape is complex and evolving. Trying to navigate it without expert support can lead to costly missteps.

Avoid it: Partner with ESG specialists who understand both global standards and local realities.

The Bottom Line

In today’s business climate, ESG mistakes don’t just damage reputations—they directly affect your bottom line. From securing funding to staying compliant, ESG is now a strategic imperative.

At Teasoo Consulting, we help businesses across Africa avoid these pitfalls, align with best practices, and unlock ESG’s true value. If you’re ready to turn ESG into a competitive advantage, let’s talk.