Let’s be honest: there’s a problem with ESG. It’s not the causes of the environment, social progress, or better governance that are the issue, however. The acronym itself has become tarnished, eliciting conference yawns at best, and active push-back at worst.
We know as leaders, we should — and in most cases do — care about these matters, but we’re collectively suffering a kind of ESG fatigue that makes it challenging to react positively to the phrase. This is partly because it’s too big to handle all at once, and partly because conversations around it still remain largely theoretical rather than practical — business leaders are taking all the right steps, without a clear way of tracking progress or success.
The thing is, ESG has a demonstrable positive impact on business, both financially and reputationally. Conversely, not acting on these issues puts organisations at a significant disadvantage that may well hamper future growth. We can’t let the term itself hide what is actually an imperative for your business. Call it whatever you like, but ESG requires action now.