The business landscape of today is quickly shifting due to expanding expectations relating to the role of corporations. Issues like climate change, nature loss, employee inequality, working conditions, and corporate ethics, have forced the World Economic Forum’s Business Council to distinguish common ground among corporate leaders. As a result, the development and implementation of ESG is emerging as much more than a trend.
Environmental, Social, Governance (ESG), is the evolution of themes and metrics that are expected to feed into enterprise value creation. The goal: to facilitate the adoption of a common set of universal sustainability principles and endorse them in capital markets. Jurisdictions and Regulators are working to finalize new guidelines. Such rules will require companies to disclose information concerning their “ESG” footprint within their annual reports and mainstream regulatory filings. ESG proves more than an emerging trend as its role in the retention of investment dollars has increased, substantially.