Game-Changer: Why Sustainability Is the Winning Strategy in Sports

If you’re in professional sports management, chances are you’ve found the topic of sustainability rising up the team agenda.

From football clubs to basketball teams, ESG is now on the management agenda as a commercial consideration.

Consumers are only going to become more conscious about environmental matters, and will make choices based on which organisations they see as doing ‘good’ – again, people can tell when something is authentic or not, so gimmicky campaigns aren’t the answer.

Businesses who invest time and resource in ‘going green’ are only going to benefit financially, staying ahead of competitors as the rest wake up to the importance.

Henry Staelens, Chief Executive of the Forest Green Rovers

There are a number of factors driving ESG practices within the sporting industry.

Why is ESG essential for the future of sports?

Sponsorship and Corporate Commitment

Leading football clubs have witnessed a transformation in their sponsorships. Many brands that endorse these clubs have publicly announced their net-zero goals and commitment to reducing climate change.

This corporate shift towards sustainability affects not only the way businesses operate but also extends to the suppliers they procure from and the teams they support.

We are also starting to hear more about potential sponsors and investors doing ESG due diligence on sports organisations that they are looking to align with.

Claire Poole, Founder and Chief Executive, Sport Positive Summit

As sponsors align themselves with sustainable values, clubs must adapt to meet these expectations. The ones that do will land sponsorships.

Risk Management and Cost Savings

The impacts of climate change come with tangible costs such as rising energy prices and increased ground maintenance expenses. Not to mention games cancelled because of severe weather.

By adopting sustainable practices and planning for the medium term, clubs can mitigate costs while achieving long-term savings.

Addressing sustainability as a risk management strategy enables teams to future-proof their operations and finances.

UN’s Sports for Climate Action Framework

The United Nations’ Sports for Climate Action framework has gained traction across the sporting community. More than 250 major clubs and sports federations have already committed to this initiative, alongside the bigger Race to Zero campaign.

In line with this commitment, teams are required to set near-term goals to reduce their carbon footprint by 50% before 2050.

Embracing sustainability aligns sports organizations with global efforts to combat climate change and promotes broader action.

Regulation and Accountability

Starting in 2024, the EU’s new non-financial disclosure regulation CSRD requires most major football clubs to disclose their non-financial standing.

This includes providing carbon accounting data and demonstrating preparedness for physical climate change.

Clubs that plan greater transparency and accountability today will be on the front foot when reporting starts.

Take Action Now

Sustainability in professional sports is no longer a trend but a tool to mitigate risk and create long-term value. With sponsorship dynamics changing, climate-related costs on the rise, and global initiatives such as the UN’s Sports for Climate Action gaining momentum, sports organizations that embrace ESG will thrive in the future.

At Bloom, we have a carbon accounting tool and ESG advisory services that help sports clubs build that winning strategy. Message us to connect with an expert today.

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Source: ‘Our partnership revenue grew fivefold in three years’: Sports sustainability experts make the business case for carbon reduction