Environmental, Social, and Governance, also collectively referred to as ‘ESG & Sustainability‘, rapidly evolved from a peripheral concern to a central consideration for investors. Until recently, institutional investors, proxy advisors, customers, and employees were increasingly demanding measurable action on sustainability. However, this has recently waned with the rise of populist leaders in North America and Europe.
Given the flip flop in sentiment, and the disbandment of sustainable investing alliances, management teams are struggling to determine what direction to take on ESG. Furthermore, companies continue to struggle to communicate their ESG efforts in a credible, consistent, and investor-relevant way.
Despite a rising tide of skepticism about greenwashing, and ambiguity about the relevance of ESG & Sustainability in today’s markets, companies need a cohesive and consistent ESG & Sustainability strategy. The absence of a coherent ESG and sustainability strategy can still give rise to investor skepticism, shareholder dissent, and reputational vulnerability.