In #ESG — #Environmental, #Social, and #Governance — each letter represents a massive area of focus with distinct challenges and responsibilities 💼 . Grouping them into one acronym can sometimes reduce their significance to a mere checklist ✅, something to “get through.” But it’s so much more than that. 🌟 Especially “E” (environmental), 🌱 which is a critical part of our planet’s and our future’s survival. 🌎💧 Yet, many companies still see ESG as “nice-to-have,” rather than essential, which is mind-boggling given what’s at stake. 🤯 ❗
And while this acronym has paved the way for much progress, perhaps it’s time to consider a change. Imagine merging fields like marketing, logistics, and procurement under one umbrella term. 🧩 Just the thought of it feels unsettling! But I’ll leave that topic for another post… 🗯️
But how did ESG actually start, and what brought us here? Let’s take a quick journey through the history 📜🕰️:
• 1970s: 🌱 #SociallyResponsibleInvesting (#SRI) began, allowing investors to align portfolios with ethical values, like divesting from apartheid-related businesses.
• 1990s: 📈 Institutional investors started to see ESG factors as ways to improve financial performance and risk management. In 1995, the US SIF recorded $639 billion in sustainable investments.
• 1997: 📃 Global Reporting Initiative (GRI) was founded to address environmental concerns, soon expanding to social and governance.
• 1998: 💡 John Elkington’s #TripleBottomLine framework emphasized “#People, #Planet, #Profit,” pushing companies to consider #nonfinancial impacts.
• 2000: 🌎 The United Nations #MillenniumSummit set development goals around human rights, working conditions, and the environment, laying the groundwork for broader ESG discussions.
• 2004: 💼 The official “ESG” term debuted in the UN’s #WhoCaresWins report, providing a clear framework for integrating ESG factors in business.
Since then, frameworks like the Principles for Responsible Investment (PRI) and Climate Disclosure Standards Board (CDSB) have continued to guide how companies and investors engage with ESG. Today, ESG isn’t just about “checking the box”—it’s about making meaningful, measurable change for the planet and society.
“𝘋𝘦𝘴𝘱𝘪𝘵𝘦 𝘵𝘩𝘦 𝘥𝘪𝘴𝘢𝘱𝘱𝘦𝘢𝘳𝘢𝘯𝘤𝘦 𝘰𝘧 𝘦𝘤𝘰𝘭𝘰𝘨𝘪𝘤𝘢𝘭 𝘣𝘶𝘧𝘧𝘦𝘳𝘴 𝘢𝘯𝘥 𝘮𝘰𝘶𝘯𝘵𝘪𝘯𝘨 𝘳𝘦𝘢𝘭 𝘤𝘰𝘴𝘵𝘴, 𝘪𝘥𝘦𝘰𝘭𝘰𝘨𝘪𝘤𝘢𝘭 𝘭𝘰𝘤𝘬-𝘪𝘯 𝘳𝘦𝘪𝘨𝘯𝘦𝘥 𝘪𝘯 𝘣𝘰𝘵𝘩 𝘤𝘢𝘱𝘪𝘵𝘢𝘭𝘪𝘴𝘵 𝘢𝘯𝘥 𝘤𝘰𝘮𝘮𝘶𝘯𝘪𝘴𝘵 𝘤𝘪𝘳𝘤𝘭𝘦𝘴. 𝘕𝘰 𝘳𝘦𝘱𝘶𝘵𝘢𝘣𝘭𝘦 𝘴𝘦𝘤𝘵 𝘢𝘮𝘰𝘯𝘨 𝘦𝘤𝘰𝘯𝘰𝘮𝘪𝘴𝘵𝘴 𝘤𝘰𝘶𝘭𝘥 𝘢𝘤𝘤𝘰𝘶𝘯𝘵 𝘧𝘰𝘳 𝘥𝘦𝘱𝘳𝘦𝘤𝘪𝘢𝘵𝘪𝘯𝘨 𝘯𝘢𝘵𝘶𝘳𝘢𝘭 𝘢𝘴𝘴𝘦𝘵𝘴.” 𝘑𝘰𝘩𝘯 𝘙𝘰𝘣𝘦𝘳𝘵 𝘔𝘤𝘕𝘦𝘪𝘭𝘭
