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Moving Beyond ESG

hbr.org · 172 words · saved by 1 readers

ESG programs are increasingly criticized across the political spectrum—both for not doing enough and for pushing a liberal agenda. But the need for clear alignment between a company’s financial performance and its ESG performance remains. An ongoing debate between using single materiality, which focuses on shareholder value, or double materiality, which includes societal impacts, is mired in political and measurement complexities, with no consensus in sight. Clearly define corporate purpose, improve transparency in ESG reporting, and engage stakeholders constructively. These strategies help companies manage ESG pressures by focusing on material issues that affect shareholder value while also acknowledging and addressing broader societal impacts. It’s been a rough few years for ESG—the popular shorthand for measuring and managing a company’s environmental, social, and governance performance. In the United States the term has become a punching bag for both sides of the political aisle. F

Harvard Business Review Logo The framework has its detractors. Here’s a new playbook for responsible business. Kevin Hoth It’s been a rough few years for ESG—the popular shorthand for measuring and managing a company’s environmental, social, and governance performance. Critics on the political left It’s been a rough few years for ESG—the popular shorthand for measuring and managing a company’s environmental, social, and governance performance. In the United States the term has become a punching bag for both sides of the political aisle. For those on the left, ESG doesn’t go far enough in…

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