In today’s corporate landscape, Environmental, Social, and Governance (ESG) principles are more than just checkboxes—they’re benchmarks of trust, accountability, and long-term sustainability. But while carbon emissions and diversity targets dominate ESG conversations, there’s one area still too often overlooked: animal welfare.
Forward-thinking companies are starting to recognize that how they treat animals—directly or indirectly—says a lot about their values. And in 2025, consumers, investors, and employees are watching closely.
Animal Welfare Is an ESG Issue—Here’s Why
ESG is about minimizing harm and maximizing positive impact across stakeholders. That includes animals.
Whether through supply chains, product testing, marketing, or employee perks, many businesses are connected to animals in some form. Companies that ignore these touchpoints are overlooking a key ESG dimension.
“A company’s treatment of animals reflects its ethical maturity and commitment to long-term sustainability.”
— RSPCA Good Business Awards Panel
The Consumer Shift Toward Ethics and Transparency
According to a recent UK consumer study, over 60% of shoppers now consider animal welfare standards when choosing brands. Transparency matters.
In industries such as food, fashion, cosmetics, and entertainment, consumers want to know:
- Are animals being exploited, tested on, or harmed?
- Is the company committed to cruelty-free standards?
- Does the brand support humane, sustainable alternatives?
Brands that can clearly answer those questions are gaining a competitive edge—and building long-term loyalty.
Risk Management and Brand Integrity
Neglecting animal welfare doesn’t just hurt animals—it puts your brand at risk.
- Reputation damage from undercover investigations
- Loss of market share to cruelty-free or ethical competitors
- Investor pushback from ESG-focused funds
- Legal penalties as animal protection laws strengthen globally
Integrating animal welfare into ESG is a proactive form of reputation risk management. It tells stakeholders your business has foresight and moral leadership.
Where Animal Welfare Fits in ESG Criteria
Environmental
- Sustainable sourcing avoids destructive practices like overfishing or habitat loss
- Plant-based alternatives reduce environmental impact compared to animal farming
Social
- Workers involved in animal-related industries benefit from ethical labor and humane systems
- Positive consumer perception of cruelty-free and welfare-friendly policies
Governance
- Transparent animal welfare standards and compliance frameworks
- Independent audits and certifications (e.g. RSPCA Assured)
“If animals are part of your supply chain, governance is not complete until their welfare is part of your policy.”
Industries Where Animal Welfare Should Be ESG-Mandated
- Food & Agriculture: livestock handling, transportation, slaughter methods
- Retail & Fashion: leather, wool, down, fur, and exotic skins
- Beauty & Pharmaceuticals: animal testing in product development
- Entertainment & Tourism: animal attractions, wildlife encounters, zoos
- Logistics: companies involved in transporting animals or animal products
- Finance: ESG investment funds excluding companies that harm animal welfare
From Policy to Practice: How Companies Can Act
- Audit your supply chain for animal-related touchpoints
- Implement cruelty-free standards and certifications
- Partner with organizations like the RSPCA for expert guidance
- Train your staff in ethical sourcing and marketing practices
- Disclose animal welfare performance in ESG reporting
The bar for “doing the right thing” is rising fast. The companies that lead now will be the ones that consumers and investors trust tomorrow.
Final Thoughts: Animal Welfare Is a Strategic Imperative
Including animal welfare in your ESG strategy isn’t just ethical—it’s good business.
It builds brand credibility, strengthens stakeholder relationships, and aligns your company with a future where ethics, transparency, and responsibility define success.
The RSPCA Good Business Awards recognises companies that are setting this standard—innovating not just for profit, but for purpose.
