No, ESG (Environmental, Social, Governance) is not dead, but it’s evolving and facing challenges like political backlash, greenwashing scrutiny, and a need for clearer metrics, shifting from simple “box-ticking” to more integrated, results-driven strategies, with many experts seeing it maturing into “ESG 2.0” focused on tangible impact and business sense.
While some claim it’s failing due to hype, the core principles remain vital, with investors, regulators, and companies continuing to embed sustainability into core decisions, albeit with a greater demand for authenticity and measurable outcomes
Why it’s considered “dead” (and why it’s not)
- Backlash & Fatigue: Criticism arose from ESG being treated as a compliance exercise, leading to “greenwashing” and performance questions, causing some to question its relevance.
- “Midlife Crisis”: Momentum slowed as performance and practicality gained focus over pure purpose, with a generational divide in views.
- Not Dead, Just Evolving: The fundamental need for sound governance, environmental stewardship, and social responsibility remains crucial for long-term business viability.
The evolution (ESG 2.0)
- Focus on Tangible Results: Businesses are moving from broad promises to concrete actions, like installing efficient trucks or optimizing energy use, proving impact.
- Authenticity is Key: Companies must back up claims with real data to avoid reputational damage from greenwashing.
- Regulatory Shift: Regulators are refining rules, pushing for clearer disclosure, and recalibrating burdens, but the overall sustainability agenda persists.
- Core Business Integration: ESG is becoming a fundamental part of risk management and strategy, not just a separate initiative, notes the IOM3.
In essence, the noisy hype around ESG might be fading, but the underlying movement towards sustainable, responsible business practices is maturing, not dying.
(Picture: Pexelx.com_Jean Christophe Andre)
