“Environmental – Social – Governance” (ESG)
The Ethos of global enterprise in the new world
ESG is of increasing interest to companies, their investors and stakeholders. There is a growing concern about the ethical status of companies as global and local players, these standards are a central factor that helps measure the ethical impact and sustainability of investment in a company.
There is a definite alignment with what was referred to as “the triple bottom-line” but ESG goes one step further, as it helps to measure or quantify environmental and social efforts.
When this discussion was first started (by UN Secretary General Kofi Annan -January 2004) it was focused toward financial institution boardrooms, but it has now become a conversation for boardrooms in all sectors, hence a truly shared responsibility.
The principal message is that all organisations, which may have a direct or indirect impact on the global scene (starting from a local one) be it economic, social or environmental, need to have this conversation.
At the core of ESG investing is the simple idea that companies are more likely to success in creating greater value for all their stakeholders , while future proofing the organisation and its global footprint.
The questions are simply:
How does your Board manage Environmental -Social- Governance policy?
What frameworks does your Board have in place to even consider ESG?
Should your Board have a ESG sub – committee, and what would its mandate be?
Is global community before profit a mantra that your organization would like to embrace?
These and many more questions can be answered by a simple short lecture at your next Board meeting!
Contact us to discuss……
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