ESG: The Future of Business Is Sustainable Business
Today, every business has a responsibility – and an opportunity – to address the significant environmental, social and governance (ESG) challenges we face as an interconnected, global society. Not only is it the right thing to do, it is the only thing to do to contribute to a better planet, a better society and a better – and more sustainable - business.
What Is ESG and Why Is It Important?
ESG is the view through which we measure and assess the sustainability of an organization.
Environmental factors focus on minimizing climate risk both to the organization and from the organization’s actions to the planet. Accounting for these factors can also help optimize costs, improve operational efficiencies, and drive growth through sustainable business practices. Embracing environmental stewardship ensures that businesses meet their own needs today without compromising the ability of future generations to meet theirs.
By prioritizing social factors, businesses do their part to drive positive societal change. A focus on equity and fairness, human rights, workplace safety, employee engagement, and data privacy fosters trust and inclusion. Those organizations that consider these factors will benefit from greater employee satisfaction and higher levels of employee engagement and productivity, talent–and customer–retention, and brand integrity.
Governance factors focus on business leadership and ethics, with a significant emphasis on risk management and value creation. Those with strong governance programs mitigate risk, promote ethics, and drive business growth.