The rising attention given to Environmental, Social Impact and Governance (ESG) criteria within the corporate world is proving to investors that sustainable trends may in fact be profitable. Due in large part to a more ethically-driven generation coming of age, millennial investors want to put their money where their values are and companies are having to (finally) prove their worth through ESG reports.
The US investment regulator, the Security and Exchange Commission has added a new page to its website to provide up-to-date ESG-related information and agency action. ESG reporting is finally working towards a consistent set of metrics.
As ESG investments continue to grow rapidly across sectors in advanced economies, it is important to consider what the implications of this might be for low-income countries. In order to achieve the sustainable development goals on a global scale, development finance must play a role in ensuring these countries also benefit from this newfound focus on ESG.
How much of ESG is merely marketing? Avoiding Greenwashing is not as simple as you may think. The increasing expectations of responsible, equitable and environmental business practice has catalysed the growth in ESG (environmental, social and corporate governance) investment. With allocation of green funds rising six-fold since 2015, according to Bloomberg, investing sustainably has become not only fashionable but the norm.
In a shifting and increasingly complex world, connectedness is key. If there is one group least likely to attract public sympathy for the challenges of the last 12 months it’s probably corporate leaders. But it has been a tough pandemic for those at the top. Many have had to make and implement very difficult decisions, as well as displaying extraordinary versatility in responding to changing circumstances at rapid pace.
Sustainability and environmental resilience should be at the heart of corporate long-term objectives and agenda. Recognition that society and ecological systems are intrinsically linked is vital in order to transition towards circular economies, green infrastructures and develop policies that put nature at the centre.
ESG is no longer just a set of criteria for ethical investment decisions – it’s become an essential tool for risk management too, making it even more crucial for companies to learn how to report their ESG metrics in 2021.
The Sport Positive Summit has published its 2020 Premier League Sustainability Table, naming Tottenham Hotspur as the most environmentally conscious Premier League team.
