Five ways boards can unlock ESG’s strategic value
- A variety of factors have caused ESG investing strategies to go from niche to transforming the flow of capital.
- Integrating ESG into broader business strategy can enhance performance and further differentiate the company from its competitors.
- ESG communications and reporting provide stakeholders a broader view into how the company is delivering and protecting value.
Environmental, social and governance (ESG) strategies are ever critical to resiliency and long-term business success. COVID-19 and its exponential impacts have transformed societal norms and interactions, exacerbated social and economic inequality and heightened demands for companies to be accountable to their stakeholders.
Financial figures alone no longer tell a company’s whole story. The pandemic has also cast a spotlight on corporate resilience and purpose just as the climate crisis, changing demographics, emerging innovations in technology and other forces may drive further upheaval and radically reshape expectations of business. It has become clear that ESG issues are critical business issues. To sustain and thrive in this new era of accelerating transformation and stakeholder capitalism, companies should embrace ESG as a strategic business imperative. This article explores five ways boards can enhance their oversight of ESG and better position the company to unlock value.