At its most simple, ESG refers to the three core principles used to measure and evaluate how responsible an organisation and its business practices are:
These three areas focus on how a business impacts the environment, what social impact it has, and how it is governed.
ESG in business is changing what it means to be successful. And that means your business needs to change too. But creating an ESG business strategy is no easy task, especially as it’s a complicated and evolving concept. What is clear is that having an ESG strategy is fast becoming an imperative for all your stakeholders.
The definition of a stakeholder has expanded to cover prospective employees, existing workforces and clients, so organisations must meet the expectations of each group when it comes to doing the right thing and conducting business the right way.
There is also a number of existing ESG compliance and reporting requirements that businesses need to be aware of along with complicated ESG regulation – but this is a fluid and complex area. Getting the right advice is more important now than ever.
ESG comes with complex challenges, but it also comes with a wealth of opportunities. Organisations that respond to the ESG call stand ready to benefit from the new forces shaping decision making.