Environmental, Social and Governance
“Climate Change is Accelerating, Bringing the World ‘Dangerously Close’ to Irreversible Change” (New York Times, January, 2021)
Environmental, Social and Governance (ESG) factors are being used increasingly by the investor community to assess the sustainability and risk profile of companies. ESG considerations can have a range of impacts on an organization’s financial performance and underlying shareholder value. Multiple bodies of research point to a positive correlation between financial performance and strong corporate ESG policies and practices.
Whereas Governance factors have been a feature of the corporate agenda for the longest time, it was in 2020 when we saw long standing Social issues such as racial and other inequalities being firmly thrust onto board and executive committee agendas around the world.
And on the Environmental front, we are witnessing planet earth on an accelerated path to increasingly intense climate-related events at the same time as our window of opportunity to remedy the situation and act to avoid widespread economic, physical and social dislocation and devastation is rapidly closing.